Boosting Colombia’s renewable energy capacity and grid reliability.

The Financiera de Desarrollo Nacional (FDN), a member of the Grupo Bicentenario, has announced its participation in the financial closing of the El Campano Solar Park. Located in Chinu, Cordoba, the renewable energy project is designed to strengthen national energy security and support the transition toward cleaner power sources.

The initiative involves the development, construction, and operation of a photovoltaic solar plant with an installed capacity of 128.8 MWdc (99.9 MWac). The facility is scheduled to begin commercial operations by the third quarter of 2027.

The financial structure includes a commitment from the FDN of up to $157.5 billion COP, consisting of senior debt and a bank guarantee. This contribution represents approximately 50% of the total project debt. The total investment for the project is estimated at $453.9 billion COP, utilizing a framework that combines private equity and long-term debt.

“The financial closing of the El Campano Solar Park represents a firm step in the consolidation of a cleaner, more resilient, and sustainable energy matrix for Colombia.” — Rafael Herz, acting president of the FDN

“The financial closing of the El Campano Solar Park represents a firm step in the consolidation of a cleaner, more resilient, and sustainable energy matrix for Colombia,” stated Rafael Herz, acting president of the FDN. “At FDN, we remain committed to mobilizing investment toward strategic projects that not only strengthen the country’s infrastructure but also generate positive environmental and social impacts in the regions.”

Revenue for the El Campano Solar Park is supported by a 15-year energy purchase agreement (PPA) with ISAGEN, a company maintaining a AAA credit rating. The contract operates under a “pay-as-generated” modality. Furthermore, the project is set to receive income via the Cargo por Confiabilidad (Reliability Charge) over a 20-year period, a mechanism intended to ensure long-term financial stability and debt service capacity.

The project is being developed by Atlas Renewable Energy in partnership with ISAGEN (BVC: ISAGEN). This collaboration is part of a broader joint strategy aiming to develop up to 1,000 MW of solar projects in Colombia by 2030.

In addition to its contribution to the Sistema Interconectado Nacional (National Interconnected System), the project is expected to reduce carbon dioxide emissions by approximately 4 million tons over its operational lifespan. This alignment follows national objectives regarding sustainability and climate change mitigation.

According to the FDN, the project integrates environmental, social, and governance (ESG) criteria into the financing decision-making process, focusing on the decarbonization of the economy and regional development.

Grupo EPM, the multi-utility conglomerate owned by the municipality of Medellin, reported consolidated revenue of $40.6 trillion COP (approx. $11 billion USD) for the full year 2025. Despite a year characterized by climate variability and increased regulatory pressure, the group saw net income rise to $5.3 trillion COP, a 9% increase compared to 2024 results. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $11 trillion COP ($2.98 billion USD).

The Medellín utility unit, EPM, contributed $20 trillion COP in revenue and $4.9 trillion COP in net income. Management attributed the stability of these figures to a diversified portfolio. Power generation remains the primary driver of profitability, accounting for 49% of net income, followed by energy distribution at 27%. The water, sewage, and waste management sectors contributed 15%, while transmission and natural gas accounted for 3% and 1% respectively.

In 2025, Grupo EPM obtained results that confirm its ability to advance in complex scenarios, reflecting work to achieve lasting efficiencies.” — John Maya Salazar, General Manager of EPM

Financial leverage remained within contractual covenants. The debt-to-EBITDA ratio for the group closed at 2.9x, comfortably below the 3.5x threshold required by many credit agreements. For the individual EPM entity, the ratio stood at 3.5x. This solvency allows the organization to continue its capital expenditure program, which saw $5 trillion COP ($1.36 billion USD) invested in infrastructure and social programs throughout the year.

John Maya Salazar, General Manager of EPM (photo courtesy EPM)

A significant portion of the capital budget was directed toward the Hidroituango hydroelectric project. Approximately $1 trillion COP was allocated to Stage 2 of the project, specifically turbine units 5 through 8. Beyond energy, the company continued funding the Unidos por el Agua and Unidos por el Gas initiatives, which target utility access for vulnerable populations in the department of Antioquia and other regions.

Dividend and Fiscal Transfers

During the 2025 fiscal period, EPM executed transfers totaling $2.6 trillion COP to the Distrito de Medellín. These funds, representing 55% of the utility’s 2024 net income, serve as a primary funding source for the municipal development plan. Additionally, the group generated $21.8 trillion COP in total added value across its areas of operation, including $3.7 trillion COP in taxes, fees, and contributions to the state.

The company is currently undergoing a structural reorganization intended to modernize its operating model. According to management, this transition is designed to improve strategic efficiency as the group faces future macroeconomic shifts. The group’s economic footprint in 2025 included $6.7 trillion COP paid to suppliers and the financial system, along with $3 trillion COP dedicated to direct and indirect employment costs. Total reinvestment into the group’s various subsidiaries reached $5.6 trillion COP to ensure infrastructure modernization.

Financial data and sustainability reports are routinely filed with the Superintendencia Financiera de Colombia. Interested parties can find further information on the company’s investor relations portal or through the Alcaldía de Medellín official website.

Above video: An aerial view of EPM’s Hidroituango hydroelectric dam(video © Loren Moss)