Climate-focused investment firm Climate Fund Managers (CFM) has officially commissioned its inaugural solar power project in Latin America, while also backing a second plant in northern Colombia, reported Renewables Now.
The operational facility, named Petalo del Norte I, is a 19.9-MWac/26.4-MWdc solar installation situated between the Cesar and Norte de Santander regions. Developed in collaboration with local energy company Erco Energia and executed by Andina Solar, the project received additional support from the European Union.
This fixed-tilt solar photovoltaic (PV) plant is expected to produce over 45 GWh of electricity annually, enough to supply power to around 32,600 residents. The energy will be sold under a 15-year power purchase agreement (PPA) with an independent energy trader.
Strategic Investment and Funding
As per the news report, CFM, a joint venture between the Dutch development bank FMO and Sanlam InfraWorks of South Africa’s Sanlam Group, contributed nearly USD 20 million (EUR 17.3 million) in development and construction financing for Petalo del Norte I through its EU-backed Climate Investor One (CIO) fund.
In addition to this, the fund manager has invested USD 1.5 million in the nearby Pradera solar project, a 40-MWac plant with 18 MWh of battery storage, also in partnership with Erco Energia. Once completed, Pradera is set to become Colombia’s largest solar-plus-storage facility, generating more than 95.8 GWh annually.
Blended Finance Driving Clean Energy
Both projects were facilitated by CFM’s blended finance model, which combines public and private capital to support sustainable infrastructure.
Juan Paez, Head of Latin America at CFM, highlighted the importance of such investments: “Securing financing for climate infrastructure remains a major challenge in achieving Colombia’s 2050 net zero target. Our collaboration with Erco Energía, backed by the European Union, demonstrates how blended finance can unlock projects that enhance energy security and accelerate the clean energy transition.”
