Colombia’s Barzalosa Solar Project (130 MW) Begins Construction
Colombia’s renewable energy sector has received a significant boost as Norway-based Scatec ASA has officially commenced construction on the 130 MW Barzalosa solar plant. The company announced it reached financial close for the project on February 24, 2026, marking a critical milestone in bringing this large-scale solar facility to life.
Project Partnership and Ownership in the Colombia solar project
The Barzalosa project is structured as a joint venture, showcasing strong international collaboration. Scatec holds a majority 65% equity stake, while Norfund, the Norwegian Investment Fund for developing countries, controls the remaining 35%. This partnership underscores a shared commitment to expanding clean energy infrastructure in emerging markets.
Financial Framework and Power Agreements for the Colombia solar project
A key component of the project’s viability is a long-term Power Purchase Agreement (PPA). The plant has secured a 15-year PPA with BTG Pactual Comercializadora de EnergÃa, which will cover approximately 85% of the facility’s total output. The tariff for this agreement is strategically indexed to Colombia’s Producer Price Index, providing a stable financial outlook. The remaining 15% of the energy produced will be sold on Colombia’s local power market.
The total capital expenditure for the project is estimated at $121 million. The financing is robust, with about 70% sourced through non-recourse debt from leading local institutions, Bancolombia and Financiera de Desarrollo Nacional. The remainder of the project’s cost will be covered by equity from the joint venture partners.
Construction, Operations, and Timeline of the Colombia solar project
Scatec is taking a comprehensive, hands-on role in the project’s development. The company will serve as the Engineering, Procurement, and Construction (EPC) contractor, overseeing the entire building phase. Following completion, Scatec will also manage the plant’s ongoing operations, maintenance, and asset management services, ensuring long-term efficiency and performance.
With construction now underway, the project is on track for a swift development schedule. Commercial operation of the Barzalosa solar plant is targeted for the first half of 2027. This new facility represents a substantial step forward for Colombia’s energy diversification and climate goals.
