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.  

“Financial 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’s transition towards clean energy,” 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. 

“Barzalosa will make an important contribution to Colombia’s growing need for renewable energy. We are pleased to continue our partnership with Scatec in a new country,”

Arnoldo Morice

Project Manager at Norfund

The financing structure combines equity from Scatec and Norfund with senior loans from Bancolombia and Colombia’s 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‑term Power Purchase Agreement with BTG Pactual further strengthens the project’s foundation and ensures stable revenues once the plant is operational. 

According to Colombia’s long-term energy plans, solar power is expected to make up between 10 and 21 percent of the country’s energy mix by 2037, up from just 1.2 percent of electricity production in 2023. With 64 percent of Colombia’s electricitycurrently 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. 

Norfund, the Norwegian Investment Fund for developing countries, has committed a USD 10 million senior loan in local currency to Banco de Antigua, a leading Guatemalan microfinance institution dedicated to expanding access to financial services for microentrepreneurs and underserved communities, including the large indigenous population. 

“Rural communities face some of the largest barriers in access to finance. With over 80% of its clients in rural areas, 42% of the loans to women and 20% of their clients being introduced to the financial systems for the first time, Banco de Antigua is playing a key role for increased financial inclusion in Guatemala”

Sebastian Leimbach

Project Manager at Norfund

With a diverse portfolio that includes working capital, productive vehicle loans, as well as multi-purpose loans for investing in education and housing improvements, Banco de Antigua empowered more than 144,000 clients, maintaining an average loan size just above USD 2,100 last year.  

“With this partnership, we aim to continue growing and operating in Guatemala in a sustainable, transparent, and responsible way. This aligns with our mission to help Guatemalan families and microentrepreneurs achieve their dreams through financial inclusion, by offering accessible solutions that supports development of local economies in the country’s rural regions,” says Jorge Brun, General Manager of Banco de Antigua.

“This investment reinforces our commitment to advancing financial inclusion and catalyzing sustainable economic growth in Guatemala. When microentrepreneurs succeed, they often reinvest in their communities—hiring locally, purchasing supplies nearby, and contributing to local development,” says Leimbach.  

In addition, Norfund will collaborate with Banco de Antigua to explore technical assistance projects that enhance financial literacy and support housing improvements for clients of Banco de Antigua. By investing in institutions like Banco de Antigua, Norfund continues its mission to create jobs, reduce inequality, improve financial inclusion and support sustainable private sector development in Latin America. 

After four years of collaboration, the Central American Council of Superintendents of Banks, Insurance Companies and Other Financial Institutions (CCSBSO), IFC, FMO and Norfund have concluded the Sustainable Finance for Development (FISDE) initiative, aimed at strengthening the resilience of financial systems In Central America, Colombia and the Dominican Republic. 

Through FISDE, eight national supervisory authorities now have access to tools and roadmaps aligned with international standards and adapted to local contexts – enabling the integration of ESG criteria into regulation, supervision and financial management. 

“We’re proud to have contributed through our Business Support facility to strengthen regulatory frameworks and promote ESG in financial systems, helping lay the groundwork for more resilient financial markets in the region,”

Maria Fernanda Morales Dada, E&S Manager at Norfund

One of the key outcomes of the FISDE initiative is the development of a regional green taxonomy. This taxonomy enables the classification of environmentally positive investments in a consistent way across countries in the region. It provides a shared framework for defining sustainable economic activities, facilitating harmonization of criteria across jurisdictions. While tailored to local contexts, the taxonomy is aligned with international standards and will serve as a vital tool for both regulators and financial institutions in advancing green finance and mitigating greenwashing risks. 

The initiative also delivered tangible capacity-building results: Over 100 supervisory staff participated in technical training, and several countries conducted pilot exercises to test climate risk integration in supervision. A regional platform for knowledge exchange and coordination has also been established. 

FISDE has helped embed sustainable finance as a strategic priority across the region. The development of ESG roadmaps required a consultation process with external stakeholders, which generated key recommendations and findings to strengthen supervisory capacities and support the design of public policy tools for sustainable finance. These roadmaps are now in place across supervisory authorities, with mechanisms for continued collaboration between technical teams and strategic partners in motion beyond the project’s conclusion. Importantly, they also send clear signals to the market to encourage further progress. 

The closing event in the Dominican Republic brought together supervisory authorities, private banks and multilateral institutions to reflect on progress in sustainable finance. Several Norfund investees shared their experiences and lessons learned on ESG integration and risk management. Grupo Promerica, Grupo BAC, and BHD openly reflected on their approaches to E&S risk management, financial inclusion, and climate risk assessment. Their contributions brought valuable real-world insights to the dialogue and helped bridge perspectives between supervisory authorities and the financial sector. Norfund’s Regional Director Federico Fernandez shared reflections on the power of strategic partnerships to accelerate a just transition. 

“This is a strong example of how good collaboration across the usual silos combined with targeted technical assistance can strengthen institutions and lay the groundwork for more resilient, inclusive financial systems,” said Morales Dada. 

Norfund has increased its investment in Erco Energía with a USD $20 million subordinated loan. The total investment of USD $50 million will create jobs and provide electricity through developing and constructing solar projects in Colombia.  

Norfund’s investment also plays a catalytic role by attracting a leading national financial institution to provide senior debt financing, further expanding Erco Energía’s access to capital, which is a critical barrier to reach net zero emissions in the region by 2050.   

64% of Colombia’s electricity comes from hydro power, and droughts and more unstable weather as a result of climate change, means a more diverse energy mix is important also for energy security. According to Colombia’s energy plans, the share of solar energy in the energy mix is projected to range between 10% and 21% by 2037, while it only accounted for 1.2% of electricity generation in 2023.    

“Since before our initial investment the team and achievements of Erco have impressed us. We are excited to increase the number of jobs and access to renewable energy through this investment”

Arnoldo Morice, Senior Investment Manager in Norfund

With over 12 years of experience in the sector, Erco Energía has played a key role in integrating renewable, cost-efficient, and digital energy solutions in Colombia. To date, the company has developed projects totaling over 323 MW from small to bigger scale, and it is targeting 1 GW of installed capacity by 2030.  

Since 2023, Erco has increased the number of permanent positions with 613 and provided more than 2000 temporary jobs. To make sure the communities nearby the facilities benefit, local workers have been given specialized training in construction and maintenance.   

“A well-executed social engagement strategy transforms solar projects from being just energy investments into catalysts for community growth and empowerment. By ensuring alignment with local needs and aspirations, developers can achieve greater acceptance, long-term project sustainability, and a positive social and environmental legacy.” says Luis Fernando Gómez, Chief Financial Officer of Erco.   

In the projects in Guamo, Numbana, Rokra and La Martina the company has identified key stakeholders and explained each development phase, highlighting benefits, addressing concerns, and encouraging active community participation. Projects such as integrating natural vegetation control with livestock, donating solar-powered streetlights for safer roads, and providing school kits and tablets to students have contributed to secure local support.   

Many small and medium sized agribusiness companies in Latin America struggle to get access to capital and financial services. Commercial banks often perceive the costs and risks of serving them as being too high. Yet microfinance institutions may not be able to provide loans that are large enough to meet their needs.

Latin American Agribusiness Development Corporation (LAAD) is a specialized lender that finances small and medium-sized agribusiness companies in Latin America.

Norfund’s long term financing has enabled LAAD to continue to grow their loan portfolio and to improve its funding maturity profile.

Farmers and other agribusiness actors have limited access to finance due to the inherent risks in this sector. LAAD has a focused mandate and provides loans solely to SME agribusiness in Latin America.

LAAD CEO, Benjamin Fernandez

LAAD’s portfolio is spread across twelve countries and fourteen agri-sectors. LAAD is a lender to agribusiness companies that operate in agriculture, livestock, forestry and fishing. Typical clients include Fruticola Montegiallo, a kiwifruit producer in Chile; Agroindustrial Las Mellizas,
a Costa Rican coffee producer; and Agricola Angy Rose, a company producing flowers in Equador.

LAAD is an active investor and is involved in all phases of production, processing, storage, services, technology and marketing. The company provides loans of less than USD 3 million to farmers, helping them to modernise and expand their operations.

Norfund committed its first loan to LAAD in 2004. In 2017, Norfund supported LAAD further by providing an additional loan of USD 20 million. The funds will contribute to job creation and forex exchange revenues in the Latin American region.

LAAD is a committed and experienced investment company. Most of their loans are for expansion and have led to job creation in Latin America. Being a lender to LAAD is in line with Norfund’s strategic objectives. Our loans are helping to promote and expand agribusiness SMEs in the region

Erik Sandersen, EVP in Norfund, Financial Institutions,

LAAD is a committed and experienced investment company. Most of their loans are for expansion and have led to job creation in Latin America. Being a
lender to LAAD is in line with Norfund’s strategic objectives. Our loans are helping to promote and expand agribusiness SMEs in the region