• First CFM project in Latin America reaches commercial operation, supplying clean power to 32,600 people.
• EU-backed blended finance secures development capital for Pradera, set to become Colombia’s largest solar-plus-storage facility.
• Expansion accelerates grid resilience and reduces exposure to hydropower volatility and high-cost spot markets.

A New Solar Platform Takes Shape in Northern Colombia

A new solar facility in northern Colombia has entered commercial operation, marking a significant step in an international effort to scale clean energy and reduce hydropower dependency across the country. Climate Fund Managers (CFM) and Colombian developer Erco Energía, supported by European Union public funding, inaugurated the Pétalo del Norte I solar plant and confirmed development financing for Pradera, a neighbouring solar-plus-storage project that will become the largest of its kind in Colombia.

The two facilities anchor a broader partnership designed to expand Colombia’s renewable energy capacity at a time when hydropower-dominant generation faces rising climate-driven volatility. They also present a showcase for blended finance, where public capital is deliberately structured to de-risk large infrastructure and attract private investment at scale.

First Latin American Project for CFM Reaches Commercial Operation

Pétalo del Norte I is the first CFM-backed project in Latin America to reach full operation. Developed with Erco Energía and implemented by Andina Solar, the 26.4 MWdc (19.9 MWac) plant produces over 45 GWh of clean electricity per year. That output avoids roughly 13,276 tonnes of CO₂ emissions and meets the power needs of about 32,600 people.

The project was financed with nearly USD 20 million from CFM’s Climate Investor One fund, which blends public and private capital under EU support. A 15-year power purchase agreement with an independent trader provides revenue stability, reducing long-term financing risk.

Local economic impact was a core design feature. Of the 270 jobs created, 64 percent were filled by local workers, with women accounting for 30 percent of the workforce. A USD 125,000 Community Development Programme is delivering targeted investments across four neighbouring communities, supporting education, clean water access, women’s economic participation, and rural enterprise initiatives.

Pradera Moves Forward With Solar-Plus-Storage Ambition

Construction funding is now advancing for Pradera, located on adjacent land. With 40 MWac of solar capacity and an 18 MWh battery system, it will be the largest solar-plus-storage installation in Colombia. Once operational, Pradera is expected to generate more than 95.8 GWh annually, avoiding an estimated 129,000 tonnes of CO₂ and supplying power to about 71,000 people.

The facility will create approximately 380 construction jobs and 29 permanent roles. A separate community programme will be established in consultation with local leaders.

Pradera’s storage component is central to its strategic relevance. The battery system will moderate solar variability, address short-term grid imbalances, and reduce exposure to spot-market price spikes during dry periods, including El Niño events. This stabilising function supports broader national ambitions to integrate more variable renewables into the grid.

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Blended Finance as a Tool for Risk Reduction and Market Acceleration

CFM’s model invests across the development, construction, and operational phases, reducing delays and easing reliance on conventional project finance structures. The EU’s participation is designed to absorb early-stage risk and catalyse private capital for projects that may otherwise face financing barriers.

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 ambition. 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. Under the Global Gateway, CFM´s blended finance model strategically leverages funding from public institutions like the EU and other European partners to de-risk projects and mobilise private capital.”

Juan Camilo López, Chief Executive Officer and Co-Founder of Erco Energía, said: “Expanding solar generation is essential to strengthen Colombia’s energy security and resilience. Together with CFM, we are demonstrating how partnerships that combine local expertise with international investment and experience can accelerate that shift.”

Implications for Investors, Policy Makers and the Region

Colombia’s grid remains heavily dependent on hydropower, which supplies about 70 percent of national electricity. With drought episodes intensifying, the country faces reliability risks and increasing exposure to fossil fuel back-up during dry seasons. Today, solar and wind still contribute less than 2 percent of total generation, despite strong solar resources in several regions.

Projects such as Pétalo del Norte I and Pradera indicate how blended finance and storage-integrated design can accelerate diversification and resilience. For investors, the model offers a template for de-risking projects in emerging markets. For government and regulators, it presents evidence of how storage can mitigate price volatility and reduce grid stress during extreme weather cycles.

As more Latin American countries confront water scarcity and rising electricity demand, the approach demonstrated in northern Colombia is gaining global relevance. The EU-CFM–Erco Energía collaboration adds momentum to a regional shift toward firm, dispatchable renewable power — a cornerstone for meeting long-term climate and energy security goals.

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