Celsia seeking new options for Colombia wind expansion

Celsia is searching for new locations to develop wind power projects in Colombia as socio-environmental risks continue to threaten existing developments in the conflict-ridden department of La Guajira.

The Medellín-based company has reached an advanced planning stage for a 10MW pilot project between the cities of Barranquilla and Cartagena that could pave the way for larger wind developments in the departments of Atlántico and Bolívar. 

"We are going to start construction work [on the pilot] soon," Celsia CEO Ricardo Sierra told shareholders during the firm's annual general meeting (AGM).

"We are analyzing and developing projects in other areas where the environmental and social risks are not so high," he added. 

In February, Celsia revealed it could sell wind power projects totaling more than 300MW of capacity in La Guajira as it turns its focus to Peru.

It said potential buyers had shown interest in its Acacia 2 (80MW), Camelia (83MW), Camelia 1  (83MW) and Camelia 2 (82MW) wind farms, all of which have faced resistance from local communities.

According to Sierra, the company has conducted more than 200 prior consultations since 2018 to no avail.

"We currently have all options on the table," Sierra said during the AGM. "One of the alternatives that we proposed was to end the licensing for these projects and sell the projects to others who would build and operate them."

Other developers that have reported severe power project delays in La Guajira because of social opposition include EDF Renewables, Enel and Grupo Energía Bogotá. 

Sierra said that social conflict notwithstanding, La Guajira remained the country's most attractive region for wind developers because of its consistently high wind speeds. 

"We hope that this country finds the formula to build projects in La Guajira, not only because of the benefits to local communities but also for the country. It would be very sad if these projects are not be developed," he said. 

Firm energy fears

Meanwhile, Celsia joined a growing chorus of companies that have called for a new firm energy auction over the 2027-28 period, warning of a potential electricity deficit.

"By our calculations, there is an impending shortfall of 600MW in thermoelectric capacity – plants that can generate electricity 24 hours a day, seven days a week," Sierra said. 

He explained that the company is considering the possibility of expanding its 200MW gas-fired El Tesorito thermoelectric plant in northern Córdoba department, a joint venture with Canacol and Proeléctrica. 

But to do so, Celsia needs to guarantee natural gas supply amid dwindling domestic reserves and soaring demand, he added. 

Capex

Celsia said it plans to invest around 2.5tn pesos (US$648mn) this year, up from 1.14tn pesos in 2023. 

“The bulk of the projects are aimed at asset management," chief financial officer Esteban Piedrahita said.

"In the energy service segment it is around 500bn pesos and in asset management we will approach almost 2tn pesos for projects that make up the different [investment] vehicles that we manage," he added.