Hidroituango ready for commercial operations - EPM

Colombia's Empresas Públicas de Medellín (EPM) said it avoided the prospect of multimillion-dollar fines after declaring its troubled Hidroituango power plant ready for commercial operations.

The announcement came just hours before a deadline imposed by energy sector regulator Creg for the first two turbines to come online. 

"Units 1 and 2 of the Hidroituango project have complied with all of the requirements for their entry into commercial operations," EPM said in a regulatory filing. 

Despite the milestone, EPM must conduct one more test at the 2.4GW hydroelectric plant before it can begin generating on a continuous basis, fulfilling a requirement by national disaster risk management watchdog UNGRD.

The test faces its own challenges, however, amid warnings it poses a flooding threat to communities located downstream from the plant. 

Medellín mayor Daniel Quintero, who is also EPM's chairman, said the fines would no longer apply, irrespective of when the final test is carried out. 

"We don't have to worry about the fines anymore," he said on social media. 

"The certification from [grid operator] XM, says EPM and Hidroituango complied [with their obligations]. We can send that certification to Creg and it's resolved."

Originally slated to begin operating in 2018, Hidroituango has been delayed by a series of construction problems. The plant is expected to provide 17% of Colombia's electricity.