Scatec, a renewable energy solutions provider, secured financing for the 130 MW Barzalosa solar project in Colombia. In addition, the company has begun construction on the project, which is expected to reach commercial operation date in the first half of 2027.
Bancolombia and Financiera de Desarrollo Nacional (FDN) are the senior lenders for the project.
The Barzalosa solar project benefits from a previously signed 15-year power purchase agreement (PPA) with BTG Pactual Comercializadora de Energía (BTG), a Colombian energy trading subsidiary of Banco BTG Pactual S.A., Brazil. The PPA will cover approximately 85% of the estimated production, with the remaining production to be sold in the Colombian electricity market. The PPA will be denominated in Colombian Pesos and inflation-adjusted based on Colombia’s Producer Price Index.
Scatec owns 65% of the project’s equity, developed in partnership with Norfund, which owns the remaining equity. The total capital expenditure for the project is estimated at $121 million and will be financed by a combination of non-recourse debt and equity, with approximately 70% leverage.
“Financial close 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.
The company is the lead developer of the project and will also be the engineering, procurement, and construction (EPC) provider, with the EPC scope of approximately 70% of the capital expenditure. Scatec will also be responsible for operations & maintenance, and asset management services for the solar project.
Previously, in August, Scatec secured BRL 150 million (~$27 million) non-recourse project financing for the development of a 142 MW solar project in Minas Gerais, Brazil. The funding was provided by Banco de Nordeste do Brasil.
Large-scale solar project funding increased by 37% in 2025 compared with the funding raised in 2024, according to Mercom’s recently released Annual and Q4 2025 Solar Funding and M&A report.
