Ecopetrol circling for foreign wind assets as European developers lick Colombian wounds

Colombia's state-controlled oil company Ecopetrol may step up investments in renewable energy, including new wind power assets, at a time when international developers are looking to exit the country.

Ecopetrol’s plan to produce more clean energy points to possible acquisitions “within weeks or months” from developers currently in the market, said Julian Lemos, the company’s vice president for strategy and new business, Reuters reported.

One company looking to dispose of wind assets in Colombia is EDP Renewables, six frustrating years after entering the country with a flourish after securing environmental permits and a 15-year power purchase agreement for the Alpha (212MW) and Beta (280MW) onshore wind projects, located in the La Guajira region.

The stumbling block for these projects was the permitting process for an 81-kilometre transmission line needed to connect the wind farms to the Colombian grid.

When the transmission line permit was finally issued by Colombian environmental licensing agency ANLA this week, EDPR said it was inadequate.

“Therefore, EDPR filed an appeal to have the mentioned environmental license modified. This is just another example of the numerous obstacles that EDPR has faced in relation to these projects. In this regard, EDPR can only reaffirm the announcement made in December regarding not proceeding with the construction of these projects."

Of the impairments declared on this project in December, about €500m was said to relate to the 90 Vestas V162-5.6MW turbines that have been stored in port infrastructure in La Guajira for more than two years, along with other development costs.

Colombian hurdles

Challenging community relations and slow permitting are among the factors making life difficult for several onshore wind developers in Colombia.

This is despite excellent wind conditions, especially on La Guajira peninsula, strong domestic demand for electricity and President Gustavo Petro’s avowed intention of creating jobs in green energy

Italian developer Enel Green Power suspended its own wind farm construction in La Guajira in 2023, after consistent protests by local communities, including the Wayuu indigenous group. Enel’s 200MW Windpeshi wind farm was originally set to begin generation in December 2022.

Earlier this month, Ecopetrol president Ricardo Roa described Windpeshi as a possible acquisition target.

Lemos would not confirm which wind power assets are in the frame when he spoke of a possible acquisition “within weeks or months”, citing confidentiality agreements.

"We are looking at various issues, contemplating various alternatives, they could be existing projects or ones we do ourselves depending on the advantages of each option," he told an energy conference in Colombia, according to Reuters.

Ecopetrol has said it is planning an additional $2bn in debt this year for inorganic investments.

Lemos told the conference that wind, solar and small-scale hydrogen projects are possible targets. "As a major consumer of energy and electricity in particular, we want to take full advantage of the (renewables) conditions and this resource that the country has," he said.