The company Energías de Portugal (EDP) has in Colombia the largest wind projects in the country, Alpha and Beta. Both will have a generating capacity of almost 500 megawatts (MW). Despite the fact that they have had delays, Miguel Stilwell, CEO of the company, told Portafolio that they will enter on time. And he pointed out that his commitment to Colombia is long-term.
(Colombia, one of the countries most committed to renewable energy).
What changes did you have to make during the pandemic to continue with your commitments?
Today we are already in 29 countries, we are global leaders in renewables, we have more than 14 gigawatts (GW) of solar power globally and we are one of the biggest players. Here in Latin America we are in Mexico, Chile, Colombia and Brazil. This allows us to see a bit of the different dynamics in each geography. Europe is going through a difficult period, not only because of the issue of war and the entire humanitarian crisis, but also from the point of view of energy.
What have you adjusted in Europe regarding your business plan?
Last year we presented a business plan for 2025 in which we expected to invest in building 20 Gw in renewables in this period. What this energy crisis is doing is reinforcing that strategy. We have to go even faster, but we are not changing the strategy; what we are doing is seeing in which markets we want to invest more, but the direction remains.
(‘The fuel we transport will be carbon neutral’).
How do you see the climatic conditions for these technologies and the support that
They should have?
It is clear that we must have a diversified energy mix, we are not talking about having a single technology because obviously there can be intermittency.
A mix that includes wind, solar, hydro and also storage, perhaps gas for backup is what Europe is seeing as the future. So the mix for at least the next three decades will include those technologies and in the future I see a shift to hydrogen and batteries.
How have you analyzed the strategy for Latin America and specifically for Colombia?
We believe that Colombia is a stable country, with a good macroeconomic structure. All countries have their economic cycles, but we are long-term investors. The country has a good regulatory framework and that is something we like; A very important issue is that it has very good wind and solar resources, particularly in La Guajira, where we have our Alpha and Beta projects. The combination of a stable country, with a good regulatory framework, good conditions for the production of renewables, are good conditions to invest.
How is the construction of these parks progressing?
We have a line of about 80 kilometers, which has to be built and which will connect the parks; we are currently seeking to obtain the licenses to begin construction. This is a 500 MW project, the largest renewable generation project in Colombia. It is an area with a very good resource, which results in a very low, very competitive price. Now it is obviously necessary to obtain the licenses and ensure the construction of the project.
Are you going to get in on time or are you going to be behind schedule due to those connection difficulties?
It is known that we are behind in construction, we have made a great effort to interact with all the communities, we have made a great effort and we already have protocolized agreements with 70 communities. I think we now have the conditions to move forward. The project is running a little late compared to what was planned, but I think it will be on time. The idea is that by the end of 2023 it will already be producing.
How has the progress of the prior consultations been?
We are learning to work in Colombia; We have a lot of experience building and developing in various countries. We have been in Colombia since 2019, but there are some key principles: how to work with communities. Colombia has its own reality and we have adapted; our position is one of humility, of learning, of working with people.
Worried about losing power allotments?
I think not. It’s not a big risk. We are focused on making sure that we maintain that relationship with the communities, on obtaining the necessary licenses and building as quickly as possible.
What effects will skyrocketing inflation have on your costs and generation?
It is an issue that affects all economies. In the case of the projects in Colombia, we already have the materials purchased, that will not impact us. The good thing about renewables is that once the projects are built they have little additional cost, it does not fluctuate like gas or coal for example.
What other projects are you looking at in Colombia?
We have over 1,000 megawatts that we are working on. Some are projects that are still quite embryonic, but could eventually be ready in 2026 or 2027.
Is the bet in Colombia only wind?
There are also some solar; La Guajira has good radiation and a good wind pattern.
Is the investment environment getting tougher because of the political landscape?
I think it is indisputable that there is uncertainty, but it is global. We are long-term investors and we invest with that in mind.
BRIEFCASE
