Climate Fund Managers (CFM) and Erco Energía have inaugurated the Petalo del Norte I solar plant in northern Colombia and secured development funding for the adjacent Pradera solar-plus-storage project, the companies said. The milestones mark a further step in their partnership to expand and diversify the country’s renewable energy sector with support from the European Union.
Petalo del Norte I, located between Cesar and Norte de Santander, is CFM’s first Latin American project to enter commercial operation. The 26.4MWdc (19.9MWac) fixed-tilt plant produces more than 45GWh of electricity annually and avoids roughly 13,276 tonnes of CO₂ each year, serving about 32,600 people, the companies said.
The project was developed with Erco Energía, implemented by Andina Solar, and linked to the grid through a 1.2km, 34.5kV aerial line. According to the partners, construction generated 270 jobs, 64% of which were filled locally, with women representing 30% of the workforce. CFM invested nearly USD20 million through its Climate Investor One facility, which is backed by the European Union, and the project is supported by a 15-year power purchase agreement.
The firms said a USD125,000 Community Development Programme is supporting neighbouring communities through initiatives in education, water access, women’s empowerment and rural enterprise development.
CFM has also invested USD1.5 million from Climate Investor One to advance development of Pradera, expected to become Colombia’s largest solar-plus-storage installation. The plant will provide 40MWac of solar capacity and 18MWh of storage, generating more than 95.8GWh per year and avoiding about 129,000 tonnes of CO₂, supplying around 71,000 people, the company said. Construction is expected to create around 380 jobs, alongside 29 permanent roles, and will include its own community programme.
The battery system at Pradera is designed to stabilise short-term fluctuations, manage grid imbalances and reduce exposure to high-cost spot prices during dry conditions such as El Niño events, the companies said. Both projects are supported by CFM’s blended-finance model, which combines public and private capital to help mitigate risk and speed up project delivery.
“Access to capital for climate infrastructure remains one of the main barriers to achieving Colombia’s 2050 net zero ambition¹,” said Juan Paez, Head of Latin America at CFM. “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 added that the 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.”
Erco Energía Chief Executive Juan Camilo Lopez said: “Expanding solar generation is essential to strengthen Colombia’s energy security and resilience.” He added: “Together with CFM, we are demonstrating how partnerships that combine local expertise with international investment and experience can accelerate that shift.”
The companies noted that Colombia’s reliance on hydropower leaves the grid vulnerable during droughts, while non-conventional renewables still account for less than 2% of national electricity supply but are expanding rapidly. Projects such as Pradera, they said, will help improve grid stability and reduce the need for fossil-fuel backup during dry seasons.
