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.