Climate Fund Managers and Erco Energia have inaugurated the Petalo del Norte I solar plant in northern Colombia and secured development funding for the neighbouring Pradera solar-plus-storage facility.
The companies said the milestones advance their long-term partnership to develop solar projects that will expand and diversify Colombia’s renewable energy capacity with support from the European Union.
Petalo del Norte I, located between Cesar and Norte de Santander, is CFM’s first project to reach commercial operation in Latin America, the companies said.
The 26.4MWdc (19.9MWac) fixed-tilt solar plant generates more than 45GWh of electricity a year and avoids around 13,276 tonnes of CO₂ annually while serving approximately 32,600 people, they added.
According to the partners, the project was developed with Erco Energia, implemented by Andina Solar, and interconnected through a 1.2km aerial line at 34.5kV.
The companies said the project created 270 jobs, 64% of which were filled locally, with women representing 30% of the workforce.
CFM said it invested close to USD20m in development and construction funding through Climate Investor One, which is supported by the European Union, and that the project benefits from a 15-year power purchase agreement.
The companies said the USD125,000 Community Development Programme for Petalo del Norte I supports four neighbouring communities through initiatives in education, water access, women’s empowerment and rural enterprise development.
CFM said it has invested USD1.5m from Climate Investor One to develop Pradera, which will be Colombia’s largest solar-plus-storage plant.
The company added that Pradera will provide 40MWac of solar capacity and 18MWh of storage, generating more than 95.8GWh of power annually, avoiding about 129,000 tonnes of CO₂ and supplying around 71,000 people.
According to CFM, Pradera will create around 380 construction jobs and 29 permanent roles and will include a dedicated Community Development Programme.
The partners said the battery system will help smooth short-term fluctuations, manage grid imbalances and limit exposure to high-cost spot prices during dry periods such as El Nino events.
They added that both projects were enabled by CFM’s blended finance model, which combines public and private capital to balance risk and accelerate delivery.
Juan Paez, Head of Latin America at Climate Fund Managers, said: “Access to capital for climate infrastructure remains one of the main barriers to achieving Colombia’s 2050 net zero ambition¹.”
He said: “Our partnership with Erco Energía, supported by the European Union, shows how blended finance can help bridge that gap – unlocking investment for projects that strengthen energy security and accelerate the clean energy transition.”
Alberto Menghini, Head of Cooperation at the European Union Delegation in Colombia, said: “The European Union is Colombia´s main energy transition partner, not only through Foreign Direct Investments, but also through financial mechanisms such as CFM’s Climate Investor One Fund.”
He said: “This approach enables transformative initiatives such as Pétalo del Norte I and Pradera, which strengthen and diversify Colombia´s energy mix while creating local jobs and opportunities.”
Juan Camilo Lopez, Chief Executive Officer and Co-Founder of Erco Energia, said: “Expanding solar generation is essential to strengthen Colombia’s energy security and resilience.”
He said: “Together with CFM, we are demonstrating how partnerships that combine local expertise with international investment and experience can accelerate that shift.”
The partners said Colombia’s dependence on hydropower leaves the grid exposed to drought, while non-conventional renewables supply less than 2% of electricity but are expanding rapidly.
They added that projects such as Pradera will improve grid reliability and reduce the need for fossil fuel back-up during dry seasons.