Renewable expansion strengthens Colombia energy matrix for investors.

The Norwegian renewable energy company Scatec ASA (OSE: SCATC) has reached financial close and initiated construction on the Barzalosa solar power plant in Colombia. The project, located in the municipio of Nariño within the department of Cundinamarca, has a planned capacity of 130 MWp. Total capital expenditure for the facility is estimated at $121 million USD.

The financing structure for the project is based on a 70% leverage model, utilizing a combination of equity and non-recourse debt. Scatec holds a 65% equity stake in the venture, while Norfund, the Norwegian investment fund for developing countries, provides the remaining 35%. The senior debt was provided by Bancolombia S.A. (NYSE: CIB; BVC: BCOLOMBIA) and the Financiera de Desarrollo Nacional (FDN).

The Financiera de Desarrollo Nacional committed a total of 200,358 million COP to the project. This includes a senior debt facility of up to 164,458 million COP with a term of 18 years, representing approximately 50% of the total project debt. Additionally, the FDN provided a bank guarantee of up to 35,900 million COP to substitute reserve accounts for debt service and operation and maintenance costs. The FDN also acted as a co-structurer for the financial framework of the operation.

“The financing of the Barzalosa project reflects the capacity of the FDN to structure long-term financial solutions that make strategic energy transition projects in Colombia viable,” said Enrique Cadena, Vice President of Structured Finance at the FDN.

The law firm Holland & Knight served as legal counsel to the lenders, Bancolombia and FDN, in the COP 330 billion financing transaction. The legal team was led by partner María Juliana Saa, with support from partner Inés Elvira Vesga and associates Juan Sebastián Parra and Juan Felipe Alonso. Other legal and financial advisors involved in the transaction included Cuatrecasas, which advised the borrower; Brigard Urrutia, which advised FDN regarding the credit facility; and Astris Finance, which provided financial structuring advice.

Revenue for the plant will be supported by a 15-year Power Purchase Agreement (PPA) with BTG Pactual Comercializadora de Energía (BVMF: BPAC11). The agreement covers 85% of the estimated energy production and is denominated in Colombian pesos, with adjustments based on the Producer Price Index. The remaining 15% of production will be sold on the Colombian spot market. The project is also eligible for the Cargo por Confiabilidad (reliability charge) and may access resources from the Inter-American Development Bank and the Climate Investment Funds.

Construction includes the installation of the solar array and the development of a six-kilometer transmission line to connect the plant to the national grid. Scatec is acting as the lead developer and the designated Engineering, Procurement, and Construction (EPC) provider, covering approximately 70% of the capital expenditure. The company will also manage operations, maintenance, and asset management. The Barzalosa plant is expected to reach its commercial operation date in the first half of 2027.

Colombia’s Foreign Minister Rosa Villavicencio declared Thursday that the Government of President Gustavo Petro is “not in agreement” with the Nobel Peace Prize awarded to Venezuelan opposition leader María Corina Machado – a position that signals how Colombia remains a close ideological ally of one of the hemisphere’s most authoritarian states.

In remarks that were evasive at best and obtuse at worst, Villavicencio told Caracol Radio that Colombia did not send a delegation to the ceremony in Oslo because the prize “should not be granted to someone who incites aggression.” She accused Machado of having previously endorsed the possibility of foreign intervention to restore democracy in Venezuela — a talking point aligned with Maduro’s narrative but at odds with the reality of Machado’s persecution and exile.

The foreign minister tried to soften the blow by reminding listeners that the Norwegian Committee is “autonomous,” line repeated several times as if to imply Colombia’s hands were tied. But the message was unmistakable: Colombia has chosen the comfort of accommodating a dictatorship over defending a peaceful transition to democracy in Venezuela.

The Petro administration’s stance also signals how a government that claims to champion human rights now shows deference to regimes that imprison, torture, censor, and force political opponents into hiding. Colombia has deliberately refused to stand with a woman who risked her life to defend the most essential freedoms for all Venezuelans.

The contrast between Colombia’s silence and the global celebration of Machado cannot be more glaring. Leaders across Europe, Latin America, and the United States praised her courage, while King Harald of Norway presided over a ceremony attended by Argentina’s Javier Milei, former Colombian president Iván Duque, Panama’s José Raúl Mulino, Ecuador’s Daniel Noboa, and Paraguay’s Santiago Peña.

Machado’s Escape Exposes Bogotá’s Moral Vacuum

While Colombia questions the legitimacy of the award, Machado herself undertook a dramatic escape that underscored the brutality of the regime she confronts – and the grotesque irony of Bogotá’s position.

According to a Wall Street Journal investigation, Machado disguised herself with a wig, crossed ten military checkpoints, boarded a fishing boat to Curaçao, and flew to Oslo on a private jet. After more than a year in hiding, she emerged publicly in Norway. Her daughter, Ana Corina Sosa, accepted the Nobel Prize on her behalf during a emotional ceremony on Wednesday, December 10.

Machado’s audacity – and the global admiration it generated – stands in stark contrast to Colombia’s  political miscalculations.

Villavicencio justified Colombia’s position by claiming Machado had “accepted any kind of military intervention” in Venezuela. But the remark functioned less as diplomacy and more as justification for a government unwilling to break ranks with a regime that operates as the “criminal hub of the Americas”.

Machado told reporters on Thursday, that Venezuela “has already been invaded” by Russian agents, Iranian agents, and terrorist groups Hezbollah and Hamas.  “What sustains the regime is a very powerful and strongly funded repression system. Where do those funds come from? Well, from drug trafficking, from the black market of oil, from arms trafficking and from human trafficking. We need to cut those flows,” stated the Laureate next to Norway’s Prime Minister Jonas Gahr Stoere.

Machado has pledged to return to Venezuela with her Nobel Prize and insists her country will become democratic and free. She has denounced the criminal structures that sustain the Maduro regime and highlighted the broader regional security threat it poses.

Meanwhile, Colombia – critical of Israel’s human rights abuses in the Gaza Strip – has yet to condemn the October 7 massacre committed by Hamas, and remains notably quiet on Maduro’s sprawling torture centre, El Helicoide, in central Caracas.

Petro’s increasingly toxic foreign policy with the Trump administration has now crossed an indelible moral line.  Latin America’s oldest continuous democracy is now publicly undermining a woman targeted by a dictatorship. In doing so, Colombia has distanced itself from other Western nations defending democratic ideals and aligned itself more closely with those eroding them.

The foreign ministry insists its position is based on principle. But to much of the international community, and to a majority of Colombians, the reality is unavoidable: the Petro government is no longer neutral, no longer cautious, and no longer a credible defender of democratic values. It has willingly taken Maduro’s side – and revealed a profound lack of moral courage on the world stage.