Portugal: EDP enters Colombian market and studies projects in Mozambique

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Portugal: EDP enters Colombian market and studies projects in Mozambique

5:49 CAT | 04 Mar 2018

Portuguese power company EDP plans to move into the Colombian market with the construction and concession of a dam, adding to its presence in Latin America, and is analysing projects in Mozambique, the group’s chief executive João Marques da Cruz told Lusa.

Speaking to Lusa, Marques da Cruz said that Colombia EDP plans to acquire the right to build and operate a 179 MW hydroelectric project called Talasa in the department of Chocó, which is owned by the Macquarie Development Corporation (MDC).

The acquisition, to be completed in the next few weeks, will be in partnership with China Three Gorges (CTG), the main shareholder of the Portuguese power company led by chairman António Mexia, but this time will have 20% of the capital, instead of 50% as in another recent investment in Latin America – a dam in Peru.

“Talasa has all the licenses granted by the Colombian state, and it has priority, because it is considered a project of national interest,” added Marques da Cruz.

The intention is to start the construction of the dam “within a year” and the project is expected to cost US$356 million (€292 million).

EDP’s head of internationalisation believes it is possible to have new projects in Portuguese-speaking African countries (PALOP) before the end of the decade, with Mozambique being a priority due to its “high water potential” and its interconnections with South Africa.

“We have to maintain our growth platform, which is EDP Renováveis, along with EDP Brasil, and to open a new platform for growth, which is Hydro Global [partnership with CTG], geared towards water projects not only in Latin America,” he explained adding that in this context the company is considering “projects in the PALOP,” and “Mozambique is at the forefront.”

Through Hydro Global in 2017 EDP firt enetrered the Peruvian market, where on September 1 it began construction of a dam with a capacity of 209 MW in the Andes at an altitude of 3,000 metres. The project requires an investment of US$450 million (€369 million), and production is scheduled to begin in 2022.

Peru is “a good market,” he said, explaining that “it is possible to have PPA [power purchase agreements], which gives us the possibility of future cash flow,’ for the company.

On Thursday, after the market closed, EDP announced a 16% increase in shareholder attributable profit to €1.113 million, driven by the growth of EDP Renováveis and EDP Brasil, which offset a 50% drop in operations in Portugal.

Source: Lusa