Norfund is investing USD 12.7 million in solar power in Colombia. The 130 MW solar plant in Cundimarca will be built by Scatec, a leading Norwegian renewable energy solutions provider. It will increase access to reliable electricity and support job creation in the country.
鈥淔inancial close of the Barzalosa project marks a key step in advancing the Barzalosa project in Colombia. With a robust financing structure and a long-term PPA in place with a strong offtaker, the project is well positioned for construction and delivery. We are pleased to support Colombia鈥檚 transition towards clean energy,鈥� says Terje Pilskog, CEO of Scatec.
Scatec owns 65 percent and will serve as EPC contractor as well as provider of operations and asset management services. Scatec brings extensive experience from developing and operating renewable energy projects globally and has been instrumental in advancing Barzalosa towards construction.
鈥淏arzalosa will make an important contribution to Colombia鈥檚 growing need for renewable energy. We are pleased to continue our partnership with Scatec in a new country,鈥�
Arnoldo Morice
Project Manager at Norfund
The financing structure combines equity from Scatec and Norfund with senior loans from Bancolombia and Colombia鈥檚 development bank FDN. Together, the partners enable the project to move into construction and contribute to expanding renewable energy capacity in the country. A long鈥憈erm Power Purchase Agreement with BTG Pactual further strengthens the project鈥檚 foundation and ensures stable revenues once the plant is operational.
According to solar power is expected to make up between 10 and 21 percent of the country鈥檚 energy mix by 2037, up from just of electricity production in 2023. currently coming from hydropower, increasing climate variability and recurring droughts highlight the need for a more diversified energy mix. Access to affordable capital is essential for scaling up renewable energy to meet these challenges.