- Inauguration of Pétalo del Norte I solar plant in northern Colombia, serving 32,600 people with clean energy and avoiding ~13,276 tonnes of CO₂ emissions
- First CFM-backed project to reach commercial operation in Latin America, with the support of the European Union
- Development funding secured for second project, Pradera, which will be Colombia’s largest solar-plus-storage plant, adding 40 MWac of solar capacity and 18 MWh of battery storage
Bogotá, 19 November 2025: Climate Fund Managers (CFM), a climate-focused blended finance investment manager operating in emerging markets across Africa, Asia and Latin America, and Erco Energía, a leading Colombian renewable energy developer, with support from the European Union, today announced the inauguration of the Pétalo del Norte I solar power plant in northern Colombia and development funding for the neighbouring Pradera solar-plus–storage plant.
The milestones mark continued progress in the partners’ long-term collaboration to develop a portfolio of solar projects that will expand and diversify Colombia’s renewable energy capacity, supporting the country’s transition to a cleaner, more resilient power system. The innovative character of this initiative also lies in how the support of European Union public funding serves to de-risk and unlock an exponentially larger volume of private investment .
Pétalo del Norte I, located between Cesar and Norte de Santander, is CFM’s first project to reach commercial operations in Latin America. Developed in partnership with Erco Energía and implemented by Andina Solar, the 26.4 MWdc (19.9 MWac) fixed-tilt solar PV facility generates more than 45 GWh of clean energy annually, avoiding an estimated 13,276 tonnes of CO₂ emissions each year and serving approximately 32,600 people. Interconnection is through a 1.2 km aerial line at 34.5 kV. The project created 270 jobs, 64% of which were filled by local workers, with women representing 30% of the workforce.
CFM invested close to USD 20 million in both development capital and construction funding through its EU-supported renewable energy infrastructure fund, Climate Investor One (CIO). The project benefits from a 15-year power purchase agreement with an independent energy trader, providing long-term revenue stability.
Through its USD 125,000 Community Development Programme, Pétalo del Norte I is delivering targeted social investments across four neighbouring communities – La Pedregosa, La Fragua, La Raya and Palmichal. Developed in partnership with local leaders, the programme supports education, access to clean water, women’s empowerment, and rural enterprise development. Initiatives include upgrading community infrastructure, promoting youth development through sport, and strengthening local leadership and business skills, benefiting an estimated 2,400 people.
CFM has invested USD 1.5 million in development funding from Climate Investor One to support the development of a second solar facility in the region. Located on adjacent land, the Pradera solar-plus-storage plant will add 40 MWac of solar capacity and 18 MWh of battery storage, making it the largest installation of its kind in Colombia. Once operational, Pradera will generate over 95.8 GWh of clean energy per year, avoiding approximately 129,000 tonnes of CO₂ emissions and supplying power to circa 71,000 people. The project is expected to create approximately 380 jobs during construction and 29 permanent positions in operation. A dedicated Community Development Programme will be implemented in consultation with local stakeholders to support neighbouring communities.
Pradera represents an important innovation in Colombia’s energy transition through the integration of a Battery Energy Storage System (BESS). Designed to smooth short-term fluctuations in solar generation, the BESS will help manage grid imbalances and limit exposure to the country’s high-cost spot market during dry periods, including El Niño events. By enabling more stable and predictable power output, Pradera will enhance grid reliability and support greater penetration of solar energy in Colombia’s national electricity system.
Both projects were enabled by CFM’s blended finance model, which combines public and private capital to balance risk, lower financing costs and accelerate project delivery. CFM invests across the project lifecycle, from development to construction and operation, avoiding the complexity and long timelines associated with traditional project finance.
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. 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. With Pétalo del Norte now operational and Pradera in development, we are building a solar platform that will deliver sustainable growth across the country.”
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. 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. At scale, such partnerships can make a significant contribution to regional development and global climate goals”
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 – delivering reliable, affordable energy while creating lasting economic and social value for nearby communities.”
Currently, around 70% of Colombia’s electricity comes from hydropower, leaving the grid vulnerable to drought and weather variability. While non-conventional renewables such as solar and wind supply less than 2% of total generation², sunshine is abundant for much of the year and investment in large-scale solar and storage is accelerating rapidly. This new wave of projects, including Pradera’s solar-plus-storage design, will play a key role in improving grid reliability and reducing the need for fossil fuel back-up during dry seasons.
