Cox has signed a 15-year PPA with Empresas Públicas de Medellín to supply 115 GWh of solar energy annually. The Spanish company will invest 40 million euros in a portfolio of 58 MWp that will begin operations in 2027.
The Spanish company Cox has signed a long-term power purchase agreement (PPA) with Empresas Públicas de Medellín (EPM), one of the most significant public utilities in Colombia and Latin America. The agreement will last for 15 years and involves an estimated investment of 40 million euros, as reported by the company itself, as noted by energelia.com.
The contract includes the supply of an approximate volume of 115 gigawatt hours (GWh) annually, backed by a portfolio of photovoltaic solar projects that Cox is developing in various Colombian municipalities. Together, these installations will have a total installed capacity of 58 megawatts peak (MWp).
"This new PPA strengthens the group's growth strategy in Colombia and consolidates the robustness of its renewable energy platform in the country," said Cox's Central Region manager, Martín Sucre Champsaur.
The generated energy will gradually be integrated into EPM's commercial activity starting in 2027, as the various solar parks that make up the portfolio come online. Once the entire set of projects is fully operational, it is estimated that the generated electricity could supply around 55,000 households, avoiding the emission of over 45,000 tonnes of CO2 per year.
EPM has a credit rating of 'AAA(col)' granted by Fitch, a fact that, according to Cox, reinforces the financial strength of the agreement and provides predictability to long-term economic flows. The company has also highlighted that the contract meets the most demanding bankability standards, facilitating the financing of the entire project portfolio.
This operation strengthens Cox's position in Colombia, a country that the company considers a priority within its Strategic Plan. The Spanish company has been present in the Colombian market since 2021 and currently has over 20 projects in development across the energy and water sectors.
Sucre Champsaur added that "Colombia is a priority market for Cox, where we have been present since 2021 and where we continue to advance in the development of a relevant portfolio of projects aligned with our expansion plan in the region."
This PPA adds to other recent moves by the company in Latin America, where it has strengthened its presence with similar initiatives in other countries in the region, including large solar parks in Guatemala. The focus on long-term PPAs with recognized public utilities is shaping up to be one of Cox's main avenues for securing stable revenues and financing the development of new renewable capacity in emerging markets.
With this signing, Cox continues to expand its international photovoltaic solar portfolio, betting on long-term supply contracts that combine predictable profitability with the drive for decarbonization of electrical systems in countries in the region, where energy demand is steadily growing.
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