EPM will commit to a long-term power purchase agreement to buy the energy generated and, upon completion of technical, regulatory, and financial milestones, plans to acquire a majority stake in the project. Erco and the European partner will maintain minority participations while contributing capital, technical expertise, and construction capabilities to ensure high-quality execution and operation standards. This financial and operational collaboration structure optimizes capital costs, aligns long-term incentives, and enhances the project’s risk profile through governance mechanisms.
The move is driven by Colombia’s pressing need to close the gap between electricity demand and supply, particularly in view of risks associated with climate variability such as the El Niño phenomenon. John Maya Salazar, EPM’s general manager, emphasized the commitment to delivering clean, secure, and sustainable energy amid increasing system pressures. The project also signals a strategic advance in diversifying the national energy matrix, which remains heavily reliant on hydropower.
Erco Energía, with over 13 years in the sector and more than 365 MWp installed across Colombia and other Americas markets, brings expertise gained partly through Ventures EPM since 2016. The legal framework was structured with advisory support from Baker & McKenzie and BBVA, ensuring compliance with relevant financial and regulatory standards. Final investment figures will be confirmed following financial closure and transaction adjustments. The initiative underscores the consolidated effort to strengthen Colombia’s renewable infrastructure and energy security.
This article was curated and published as part of our South American energy market coverage.
