( renewablesnow.com) EDP Renovaveis SA (ELI:EDPR) announced on Thursday it has decided to exit 500 MW of wind projects in Colombia as they are no longer economically viable.
The company cited several factors behind their decision, including delays stemming from the 2020 pandemic, shifts in government that prompted adjustments to the requirements for the environmental permit for the interconnection line and the subsequent delay, an increase in the number of local indigenous communities involved from 56 to 113, and the devaluation of the Colombian Peso, among other challenges.
Named Alpha and Beta, the two wind projects obtained environmental permits in August 2019, while securing a 15-year power purchase agreement from the government through a tender held in October 2019.
Located in Colombia’s La Guajira region, the duo were expected to be capable of generating 2.5 TWh of clean electricity per year.
With this move, EDPR calculates up to EUR 700 million in potential losses, including the full impairment of the projects and EUR 200 million connected to guarantees and estimated liabilities potentially to be paid in the future. This loss will be treated as a non-recurring event, “having no impact on either the recurring net income or the company’s dividend policy”, EDPR noted.
Brazil Energy Insight 
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