PCH Nare hydroelectric power plant is to be located on the Nare River in Colombia.
Climate Fund Managers (CFM), an investment firm backed by the European Union, has strengthened its presence in Latin America by opening a regional headquarters in Bogotá and securing financial close on its first two renewable energy projects in Colombia. Among them is the PCH Nare hydroelectric power plant, a 21.2 MW facility on the Nare River in Alejandría, Antioquia, set to provide clean energy to over 100,000 people.
CFM’s investments aim to support Colombia’s renewable energy sector while reducing carbon emissions and creating jobs. The PCH Nare plant will generate 132 GWh of electricity annually, avoiding approximately 30,500 tonnes of CO2 emissions. It will create 373 jobs during construction and 19 permanent roles upon completion. Developed by SP Ingenieros and Amber Capital Energy, the project has secured US$64 million in equity funding for construction, including a US$7.5 million contribution from the European Commission’s Energy Efficiency Initiative (EC EEI). CFM previously invested US$2 million in its development phase.
CFM has also invested in the Pétalo del Norte I Power Plant, a 26.4MW solar facility located between Cesar and North of Santander. Developed in partnership with Erco Energía, which is also handling construction, the project will generate 43.1GWh of clean energy annually, avoiding approximately 13,250 tonnes of CO2 emissions. It will create around 200 jobs and serve 32,600 people. This investment marks the first in a planned series of solar PV projects in Colombia under CFM’s partnership with Erco. CFM invested US$1 million in development capital and has secured US$18.2 million in equity funding for construction.
Alberto Menghini, Head of Cooperation at the European Union Delegation in Colombia, emphasized the importance of such initiatives: “The European Union is fully 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 leverages funding from public institutions like the EU and other European partners strategically, to de-risk initiatives and catalyse private sector investment, making transformative projects like Pétalo del Norte I and PCH Nare a reality. These projects will help address Colombia’s energy challenges, where over six million people still lack access to reliable electricity, while strengthening and diversifying the energy matrix. At scale, such initiatives can make a significant contribution to global climate goals.”
The PCH Nare and the Pétalo del Norte I projects align with CFM’s broader mission of accelerating climate-resilient infrastructure development. Juan Paez, Head of Latin America at CFM, stated: “While CFM has been active in Latin America since 2022, our first investments in Colombia and the opening of our Bogotá office mark a significant milestone in our regional footprint. Latin America faces pressing climate challenges, but its natural resources and growing green economies offer immense potential for climate-resilient solutions. Investing in critical climate infrastructure supports the region’s transition to sustainable energy while driving long-term economic and social development. We welcome collaboration with investors, developers, and government partners who share our vision.”
Beyond Colombia, CFM has played a role in Latin America’s sustainable finance sector. In 2023, it contributed US$2 million in development capital to Ecuador’s debt-for-nature swap, unlocking US$550 million in conservation funding to protect the Galapagos Islands.
