US-based Atlas Renewable Energy and Colombia-headquartered Isagen have partnered to develop, build and operate 1GW of solar projects in Colombia.
The two companies, both of which are renewable power developers, described the deal as a “strategic alliance”, although neither specified how much money they would invest into the projects or the expected timeframe for the new facilities. However, Isagen implied that the projects would be built and commissioned quickly, in order to meet Colombia’s clean power demand as quickly as possible.
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“In this way, we will contribute with our solidity and almost three decades of experience in commercialisation and generation of renewable energy in Colombia,” an Isagen spokesperson told Colombian publication Valora Analitik. “We aspire to consolidate this alliance in the short term with projects that contribute to the necessary expansion of the capacity that Colombia needs today.”
The addition of new power generation facilities will be important for Colombia as its energy demand is set to increase. Fitch Ratings forecasts that national electricity demand will grow by 1.5TWh by the end of this year, compared to the end of 2022, which will require 1GW of annual capacity additions to meet this demand.
In addition, there is considerable potential for renewable power to meet this demand. According to the Stockholm Environment Institute, solar power contributed just 290MW of Colombia’s total electricity capacity in 2022, 1.5% of the country’s energy mix, and expanding solar power is a priority for both the national government and private companies.
According to the government’s 2020-2034 Generation and Transmission Expansion Plan, the state aims to add 1.96-4.66GW of new solar capacity over the next 11 years, and the proposed work of Atlas and Isagen will account for a considerable part of this capacity.
The news follows the government’s announcement of plans to convert a 290MW coal-fired power plant into a solar and storage facility, as the government looks to expand its solar capacity and reduce its reliance on fossil fuels.