Finnfund and Proparco Invest $33 Million in Colombian Solar Firm ERCO

Finnish impact investor Finnfund and French development finance institution Proparco have committed $33 million to ERCO, a Colombian integrated solar energy platform. The investment aims to accelerate Colombia's clean energy transition by bolstering ERCO's solar power generation capacity.

The funding, part of a larger equity round led by Augment Infrastructure Managers, will finance the construction and expansion of solar energy assets. This initiative is expected to significantly contribute to Colombia's renewable energy capacity growth, enhancing energy security and diversifying its electricity mix.

"Colombia has enormous potential for renewable energy, and expanding solar generation is essential for building a more resilient and reliable power system," said Finnfund Senior Investment Manager Ari Nironen. ERCO has established itself as a leading integrated solar platform with a strong track record in project development, construction, operation, and energy retail.

Supported by a European Union guarantee under the EU's Global Gateway strategy, the investment seeks to mitigate risk and unlock further capital. Colombia's electricity system heavily relies on hydropower, making it vulnerable to climate events like droughts. ERCO plans to add approximately 1 GW of solar generation capacity by 2030 to improve system resilience and reduce greenhouse gas emissions.