Erco Energía, Empresas Públicas de Medellín unite for Colombia solar project

The project will contribute around 400MWp of capacity to the country’s grid.

The comprehensive collaboration model contributes to the project's financial and operational viability, optimizing capital costs and improving the risk profile through a structure that aligns long-term incentives, clear governance mechanisms, and robust standards.

This joint scheme also includes EPM's commitment to purchase the energy generated by the project in the long term and, once various milestones in the execution have been met—as well as the necessary regulatory and financial conditions—to contribute the resources to acquire a majority stake in the project, while Erco and the European investor would retain a minority stake.

This transaction crystallizes a strategic alliance between two growing players in the renewable energy market and EPM, a consolidated leader in the sector in Colombia, law firm Cuatrecasas said, which advised Erco Energía and the investor.

With the formalization of the agreement, the construction, execution, and commissioning of a photovoltaic project will be promoted, whose estimated generation capacity is equivalent to the reduction of 371,544 tons of CO2 emissions, the firm added.

“The combination of the technical, financial, and operational capabilities of these three companies marks a very significant step forward in Colombia's energy transition and the strengthening of its energy matrix through a high-impact project executed to the highest quality standards,” said Jaime Moya, a partner at Cuatrecasas corporate.

The Cuatrecasas team that participated in the transaction was led by partner Jaime Moya, together with attorneys Steffany Serebrenik, Mateo Benjumea, Nicolás Gaviria, and Alejandro Manrique from the firm’s corporate practice; Ana María Sánchez from the infrastructure practice, and Manuel Gómez, Carlos Méndez, Isabela Saa, and Emilio Torres from the energy practice.