Colombia approves permit for 500MW wind grid link

Colombian licensing authority ANLA has approved an environmental permit for the Beta-Alpha power transmission link, considered key to the country's renewable energy expansion.

Earmarked for the municipalities of Albania, Maicao and Uribia in northern La Guajira department, the project comprises two 220kV power lines totaling 80km.

It will connect the 212MW Alpha and 280MW Beta wind farms to the national power grid via the Cuestecitas substation.

Investment in the transmission infrastructure is expected to total 351bn pesos (US$87mn), according to documents seen by BNamericas. Combined capital expenditure required to build the wind farms is seen reaching US$510mn. 

"This transmission line represents a fundamental step forward for the integration of clean energy into the country's electrical system," ANLA director general Rodrigo Negrete said in a statement. 

He added that the license was granted following a "rigorous analysis" of the environmental impact study submitted by project owner Eolos Energía, the local subsidiary of EDP Renewables (EDPR).

Delays, possible sale

In December, EDPR announced plans to sell the Alpha and Beta wind farms, saying the projects had been rendered unviable by regulatory, political and economic obstacles.

The firm estimated that potential losses associated with the developments could reach 700mn euros (US$731mn), including full impairment and 200mn euros related to guarantees and liabilities.

At the time, EDPR spokesman Duarte Bello said the company was evaluating options for the projects that "allow for the eventual construction by third parties."

EDPR received environmental licenses for Alpha and Beta in August 2019 with the expectation of generating 2.5TWh/y. Two months later, it secured 15-year power purchase agreements for 1.7TWh/y from the projects at a public auction.

The company subsequently purchased 90 Vestas turbines and auxiliary equipment to fulfill its obligations under the PPA. These account for a major part of EDP's investment and responsibilities related to the projects, according to the Portuguese group.

EDPR has previously explained that COVID-19 caused "significant delays" in the environmental permitting process for the required interconnection line.

A change of government in 2022 led to regulatory adjustments that further impacted the projects' timeline, it said in December.