Colombia is making historic strides toward the goal of being carbon neutral by 2050.

As one of nine Latin American countries working toward a target of 70 percent renewable energy use by 2030, Colombia aims to contribute 4 gigawatts of renewable energy to its total energy mix supporting the 2030 regional goal. With its renewable energy targets and a growing share of wind and solar resources, Colombia is designing a future power system that is fundamentally different from that of today—one that uses new technologies, embraces new actors and investors, and creates new opportunities to enhance energy security, affordability, and reliability.

In this context, and as a historic milestone, the first long-term auction of non-conventional renewable sources in Colombia was held in 2019, allocating 2.2 GW of solar and wind power generation capacity with the aim of the National Government to take a major step in the energy transition policy.

At this auction organized by the Colombian Government, EDPR secured two 15-year contracts for the construction of two wind farms, allowing the Company to enter the Colombian market for the first time. The contracts refer to the Alpha (212 MW) and Beta (280 MW) onshore wind projects, which are currently being developed.

La Guajira region, home to the six awarded wind projects in the auction (including EDPR’s two projects) and nearby to 4 GW of other registered non-hydro renewable energy projects, historically has been marginalized and energy poor. In response to the crippling economic conditions in the region, the community has taken a strong stance towards large-scale renewable energy projects and some of them have been halted due to constant blockages of the construction crews.. Renewable asset deployment in the region must therefore involve environmental and socio-economic impact assessments on local communities. This can be done by fostering local community participation, including previous consultation to communities in the area of influence on project permitting and development.

Furthermore, the projects, including EDPR’s, are in Indigenous Reservations areas – territories of a collective nature in which projects can be developed through compensation agreed upon in prior consultations. Taking this into consideration, we have been in contact with the local communities since our entry in the Colombian market, working closely with them and participating in different initiatives in the country. EDPR is especially active in the region of La Guajira in which the Wayuu (an Indigenous American ethnic group) are present, and where we have a social local team of 11 people with previous specific experience in relations and prior consultation with Wayuu communities, complemented by a team of 24 contractors of which 22 are Wayuus, ensuring we have a close connection and understanding of the reality.

As stated, prior consultation is a fundamental right that ethnic groups in Colombia have in order to be able to decide on measures (legislative and administrative) or projects, works or activities that are going to be carried out within their territories, with the aim of protecting their cultural, social, and economic integrity, and guarantee the right to participation. It is a mandatory process that must be carried out before the execution of a project that may affect their living conditions through a two-way dialogue with the communities. Some commitments emerge from the prior consultation with the purpose of preventing, mitigating, correcting, or compensating the impacts generated by the project in the territories, which are determined through impact identification workshops.

This process is being followed by EDPR with the acquiescence and presence of the Ministry of Interior, specifically through the Previous Consultation Agency (DANCP), complying with all legal obligations and applicable due diligence procedures such as impact studies and prior consultations with local communities, and making sure that the Company’s contacts and formal agreements with the communities were always made with the registered Traditional Authority.

The projects are expected to have several benefits for the local communities, such as local job creation (currently, 60% of the labour force is from the Department of La Guajira), and access to renewable electricity supply through “solar energy communities” in some areas. The distribution of energy in the region is the ultimately the responsibility of the Colombian Government through private concessions, but commitments were established within the prior consultation agreements for all stages of the project to help achieve this, such as the construction of solar plants in the community centre.

In addition, resulting from the agreements made with the communities and in our efforts to support their development, we committed to a budget of 66 billion COP (~15 million USD) for 30 years with the objective of increasing the quality of life of local communities and contribute to their continued socio-economic development. Accordingly, EDPR is working closely with local communities and participating in different initiatives in the country, especially in the La Guajira region. For example, EDPR contributed to the Colombian Food Bank in 2020 with an investment of 83 million COP (~19 thousand USD), and during the Covid-19 pandemic EDPR played an active role in donating sanitary materials such as masks, gels, detection tests, among others, for the municipality of Uribia (La Guajira), amounting to 60 million COP (~14 thousand USD). More recently, EDPR donated 100 million COP (~23 thousand USD) to the representation of the Colombian Red Cross in La Guajira to assist those affected by the winter wave affecting the municipalities of Uribia, Maicao and Albania. In late 2023, EDPR donated funds to develop an income-generation project for a Wayuu family group that was living in Uribia under hardship conditions. The donation amounted to 750 million COP (~190 thousand USD). The project consists of a small livestock farm and will be implemented through a recognized NGO.

Please note that these agreements with the communities were initially determined considering the number of wind turbines installed, and even though there was a review of the license of the projects to change the number of turbines (to generate the same energy with fewer but larger wind turbines), there will be no adjustment to the commitment previously made. Therefore, by complying with the agreements reached between the community and the Company, we hope to strongly contribute to improving the quality of life of the areas surrounding the projects while preserving their uses and traditions. We would also highlight that the Colombian State, through its Ministries (Ministry of the Interior, and Ministry of Mines and Energy), follows up and monitors the progress of the project and compliance with the agreements established with the communities.

In conclusion, the Company has been continuously working together with the Government and the local communities so that our projects can start operating and so they can further benefit from them as soon as possible.

All in all, as an integral part of all the communities where it is present, and in line with its social investment strategy, EDPR undertakes to maintain a relationship of proximity with the local communities engaging in regular and open dialogue, seeking to know their needs, respecting their cultural integrity and looking to contribute to improve the living conditions of local population, taking measures to consider and respect the community interests.