EDP Renewables has agreed to buy a 628MW wind and solar portfolio in Chile, expanding its footprint in Latin America.
It will acquire a 77MW wind farm with a 20-year power purchase agreement (PPA) that is expected to come online in 2023, plus two wind farms totalling 297MW and one 254MW solar project that are expected online by 2025.
The developer will buy the projects through separate agreements with Atacama Energy and Lader Energy for a total consideration of up to $38 million.
EDPR is now active in 21 national markets worldwide, including three in Latin America: Brazil, Colombia and now Chile.
The developer’s CEO, Miguel Stilwell de Andrade, said Chile offers “world class” potential for renewable energy.
EDPR added that it will be pursuing additional wind and solar projects as well as green hydrogen growth opportunities in the country, but did not provide specific details of future growth plans.
Chile’s power sector is largely reliant on thermal, with the technology accounting for about half of the generating capacity.
However, EDPR praised the country’s stable regulatory framework, which it explained has visibility on long-term PPAs, both through regulated tenders, as well as the increasingly growing private PPA market.
The deals with Atacama and Lader see EDPR growing its footprint in Latin America. It already owns 400MW of operating renewables capacity, has 1.1GW under development in Brazil, and is developing a further 500MW in Colombia.