BOGOTA, Oct 5 Reuters French energy company EDF Renewables on Thursday said it will withdraw from a solar energy project in central Colombia due to delays in permits, as well as regulatory and tax changes.

The announcement represents the latest setback for Colombia39;s energy transition, where many renewable projects have stalled despite President Gustavo Petro39;s goal of weaning the country off of fossil fuels.

Due to significant delays in environmental permits and licenses by local entities, EDF Renewables and its partners have decided to withdraw from energy development at the Girardot power plant, in Cundinamarca province, the company said in a statement.

This situation is also a consequence of regulatory and fiscal changes that have occurred since the auction took place, the statement added, referring to the impact on the project39;s future profitability due to a tax reform, as well as increases in interest rates and exchange rate volatility.

EDF did not provide details about the project39;s generation capacity or the investments made so far.

The Ministry of Mines and Energy did not immediately respond to questions regarding the French company39;s decision.

In 2021, EDF Renewables39; Colombia unit won a longterm energy auction promoted by the government to build two solar farms with a combined capacity of 145 megawatts.

EDF Renewables is developing another solar project in Colombia39;s Meta province.

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