EDP Renewables Enters Chile with a Portfolio of 628 MW Wind and Solar Energy

EDP Renewables, a part of the EDP group, increases its worldwide footprint with its 16th market.

This expansion reinforces EDPR’s strategic presence in Latin America, where it currently has 0.4 GW of operating capacity in Brazil, and it is developing 1.6 GW in the Brazilian and Colombian markets.

EDP Renewables, a global leader in the renewable energy sector and the fourth most significant renewable energy producer globally, has reached agreements to acquire a 628 MW wind and solar portfolio in Chile, with commercial operations expected to commence between 2023 2025. With this project, EDPR increases its worldwide footprint, achieving a strong presence in 16 international markets. With these projects, EDP’s Group enters its 21st country. The transaction has been reached through two separate agreements with Atacama Energy and Lader Energy for a total consideration of up to $38 million, conditional to the achievement of pre-determined milestones for each project.

The portfolio consists of a 77 MW wind farm with a 20-year PPA, expected to enter operational in 2023, and 551 MWs in projects under development, including two wind farms totaling 297 MWs and one 254 MWac solar park. These projects will actively participate in the upcoming regulated tenders and the private PPA market in Chile, aiming to enter into operation by 2025.

Completing the 77 MW wind farm transaction is subject to regulatory approval and other customary closing conditions for a trade of this nature. Completion of the 551 MWs of projects under development has co-occurred with the signing of the agreements.


Strengthened position in Latam and strategic market entry

This portfolio allows the EDP group to establish its presence in Chile with a sizeable and technologically diversified portfolio at different stages of development. EDPR will be pursuing additional wind and solar projects and green hydrogen growth opportunities in the country and will play an active role in the green energy transition in Chile.

Furthermore, the entry into the Chilean market reinforces EDPR’s presence in Latam, where it currently owns 0.4 GW of operating capacity and 1.1 GW of secured capacity in Brazil, and 0.5 GW of secure capacity in Colombia.

The Chilean power sector is sizeable and still highly dependent on thermal generation, representing c. 50% of the generation mix. In terms of renewables, the country has solid fundamentals both for wind and solar and a stable regulatory framework with visibility on long-time PPAs, both through regulated tenders and the increasingly growing private PPA market.

Chile has set out an ambitious roadmap that outlines plans to generate 20% of its power from non-hydro sources by 2025 and 70% by 2050. The roadmap further outlines the significant potential for developing large-scale green hydrogen projects, providing an attractive long-term growth outlook for renewables in the country.

EDP’s entry into the Chilean market is within the context of the EDPR Business plan 2021-25, providing diversification and growth optionality in a sizeable renewables market with solid growth prospects, further reinforcing EDPR’s worldwide leading position in renewables.