• Partnership marks CFM’s first operational project in Latin America and secures financing for Colombia’s largest solar-plus-storage facility 
• Pétalo del Norte I inaugurated, delivering clean energy and employment in northern Colombia 

• Pradera, the next project in the portfolio, will add new solar capacity and battery storage under the growing CFM–Erco partnership 

Bogotá, 19 November 2025: Climate Fund Managers (CFM), a climate-focused blended finance investment manager operating in emerging markets across Africa, Asia and Latin America, and Erco Energía, a leading Colombian renewable energy developer, today announced the inauguration of the Pétalo del Norte I solar power plant in northern Colombia and financial close on the neighbouring Pradera project. The milestones mark continued progress in the partners’ long-term collaboration to develop a portfolio of solar projects that will expand and diversify Colombia’s renewable energy capacity, supporting the country’s transition to a cleaner, more resilient power system.  

Pétalo del Norte I, located between Cesar and Norte de Santander, is CFM’s first project to reach commercial operations in Latin America. Developed in partnership with Erco Energía and implemented by Andina Solar, the 26.4 MWdc (19.9 MWac) fixed-tilt solar PV facility generates more than 45 GWh of clean energy annually, avoiding an estimated 13,276 tonnes of CO₂ emissions each year and serving approximately 32,600 people. Interconnection is through a 1.2 km aerial line at 34.5 kV.  The project created 270 jobs, 64% of which were filled by local workers, with women representing 30% of the workforce.   

CFM invested close to close to $20 million in both development capital and construction funding   through its EU-supported renewable energy infrastructure fund, Climate Investor One (CIO). The project benefits from a 15-year power purchase agreement with an independent energy trader, providing long-term revenue stability.  

Through its USD 125,000 Community Development Programme, Pétalo del Norte I is delivering targeted social investments across four neighbouring communities – La Pedregosa, La Fragua, La Raya and Palmichal. Developed in partnership with local leaders, the programme supports education, access to clean water, women’s empowerment, and rural enterprise development. Initiatives include upgrading community infrastructure, promoting youth development through sport, and strengthening local leadership and business skills, benefiting an estimated 2,400 people. 

Located on adjacent land to Pétalo del Norte I, the Pradera solar-plus-storage plant will add 40 MWac of solar capacity and 18 MWh of battery storage — the largest installation of its kind in Colombia. CFM invested USD 1.5 million during development from CIO’s Development Fund and will contribute a further USD 41.2 million for construction through CIO’s Construction Equity Fund (CEF1), including USD 5.5 million from the European Commission’s Energy Efficiency Initiative 2 (EEI2). Construction is scheduled to begin before the end of 2025 and is scheduled for completion by the end of 2026. 

Once operational, Pradera will generate over 95.8 GWh of clean energy per year, avoiding approximately 129,000 tonnes of CO₂ emissions and supplying power to around 71,000 people. The project is expected to create approximately 380 jobs during construction and 29 permanent positions in operation. A dedicated Community Development Programme will be implemented in consultation with local stakeholders to support neighbouring communities. 

Pradera also represents an important innovation in Colombia’s energy transition through the integration of a Battery Energy Storage System (BESS). Designed to smooth short-term fluctuations in solar generation, the BESS will help manage grid imbalances and limit exposure to the country’s high-cost spot market during dry periods, including El Niño events. By enabling more stable and predictable power output, Pradera will enhance grid reliability and support greater penetration of solar energy in Colombia’s national electricity system. 

Both projects were enabled by CFM’s blended finance model, which combines public and private capital to balance risk, lower financing costs and accelerate project delivery. CFM´s funding skips the lengthier typical financing and thus accelerates the construction to operations timeframe. 

Juan Paez, Head of Latin America at Climate Fund Managers, said: “Access to capital for climate infrastructure remains one of the main barriers to achieving Colombia’s 2050 net zero ambition¹. 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. With Pétalo del Norte now operational and Pradera in construction, we are building a solar platform that will deliver sustainable growth across the country.” 

Alberto Menghini, Head of Cooperation at the European Union Delegation in Colombia, said: 
“The European Union is committed to decarbonising the economy and supporting the energy transition in our partner countries in Latin America under the Global Gateway Investment Agenda. CFM’s blended finance model strategically leverages funding from public institutions like the EU and other European partners to de-risk projects and mobilise private capital. This 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. At scale, such partnerships can make a significant contribution to regional development and global climate goals.” 

Juan Camilo López, Chief Executive Officer and Co-Founder of Erco Energía, said: 
“Expanding solar generation is essential to strengthen Colombia’s energy security and resilience. Together with CFM, we are demonstrating how partnerships that combine local expertise with international investment and experience can accelerate that shift – delivering reliable, affordable energy while creating lasting economic and social value for nearby communities.” 

Currently, around 70% of Colombia’s electricity comes from hydropower, leaving the grid vulnerable to drought and weather variability. While non-conventional renewables such as solar and wind supply less than 2% of total generation², sunshine is abundant for much of the year and investment in large-scale solar and storage is accelerating rapidly. This new wave of projects, including Pradera’s solar-plus-storage design, will play a key role in improving grid reliability and reducing the need for fossil fuel back-up during dry seasons.  

Across both Pétalo del Norte I and Pradera, CFM acts as the majority shareholder and financial investor, providing project financing and oversight; Erco Energía serves as minority shareholder and EPC contractor (EPC only for Pétalo del Norte I); and Andina Solar is the local project manager and implementing partner. 

ENDS 

Notes to Editors 

¹ Government of Colombia, E2050 Long-Term Climate Strategy, Ministry of Environment and Sustainable Development (2021). 

² Colombian Ministry of Mines and Energy / UPME, 2024. 

About CFM: 

CFM is a climate-focused blended finance investment manager operating in emerging markets across Africa, Asia, and Latin America. CFM raises and deploys blended climate finance funds, working in partnership to deliver climate-resilient solutions at scale and pace. With over USD 2.8 billion in assets under management and targeting an additional USD 4 billion, CFM’s private equity and private credit facilities address key areas of climate change mitigation and adaptation, including renewable energy, green hydrogen, energy transmission, water, waste and sanitation, and biodiversity and oceans infrastructure. CFM currently has 50 active projects across its Climate Investor One, Two and Three equity funds and has recently expanded into private credit through the GAIA Climate Loan Fund. CFM’s funds are supported by public and private sector organisations, with public capital deployed strategically to balance risk and mobilise private sector capital, enabling investment across the project lifecycle – from development to construction and operation. Established in 2015, CFM is a joint venture between Dutch development bank FMO and Sanlam InfraWorks of the Sanlam Group of South Africa, with offices in The Hague, Cape Town, Singapore, and Bogotá. www.climatefundmanagers.com. 

About Erco Energia  

Erco Energía is a Colombian renewable energy company specialising in the development, construction and operation of solar PV projects and distributed energy solutions. Headquartered in Medellín, Erco has delivered over xxx MW of installed capacity across Colombia and Latin America, supporting the region’s transition to cleaner, more reliable power. www.ercoenergia.com. 

About the European Union 

The European Union (EU) is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit.  The total EU contribution to CFM-managed funds is EUR 178 million to date plus a EUR 205 million EFSD+ guarantee, making them the largest public investor in CFM operations. 

For more information, please contact Sophie Blythe: s.blythe@climatefundmanagers.com.  

Disclaimer 

CFM is a manager of alternative investment funds and has obtained an AIFMD license from the Dutch Authority for the Financial Markets (Autoriteit financiële markten) pursuant to section 2:65 of the Dutch Act on Financial (Wet op het financieel toezicht). CFM is included in the public register maintained by the AFM on its website under license number 15004367. CFM is the appointed fund manager of Climate Investor One, Climate Investor Two and Climate Investor Three. The Construction Equity Funds of Climate Investor One and Climate Investor Two and the Climate Investor Three Fund are registered Alternative Investment Funds with the AFM.