ERCO secures USD 33 million for Colombia

ERCO has secured a USD 33 million investment from EU-backed financiers Finnfund and Proparco to expand its solar and battery storage portfolio in Colombia. The capital will accelerate the deployment of renewable energy assets to strengthen grid resilience and reduce fossil fuel reliance.

ERCO has grown from a solar engineering firm into a leading integrated clean energy platform in Colombia’s commercial and industrial solar market, with over 2,000 projects delivered since its 2012 founding. The company now covers project development, engineering, construction, power generation, and digital energy retail.

Financing structure and EU-backed guarantee

A USD 33 million equity financing round, led by Augment Infrastructure Managers and supported by Finnfund, Proparco, and an EU guarantee, will fund ERCO’s solar and battery storage expansion. The Finnish impact investor and the French development finance institution are backing the platform.

The investment is supported by a guarantee from the European Union under the EDFI Renewable Energy Transition mechanism. This mechanism is part of the EU’s Global Gateway strategy. The guarantee is intended to reduce investment risk and facilitate additional equity investment.

The funds will finance the construction and expansion of solar energy assets in partnership with European clean technology companies. ERCO plans to leverage local financing and recycle capital into additional projects. The new assets are expected to contribute significantly to Colombia’s renewable energy capacity growth.

Colombia’s electricity system is heavily dependent on hydropower. This dependency makes the country vulnerable to climate-related weather events such as droughts associated with El Niño. Electricity demand is expected to continue growing as the economy expands and electrification increases. The investment aims to mitigate risks associated with hydropower variability.

Strategic goals: capacity growth, storage, and grid resilience

ERCO plans to use the capital to reach approximately 1 GWp of additional solar generation by 2030. The company also plans to expand its battery energy storage capacity alongside solar generation.

These efforts seek to support Colombia’s transition toward a more diversified and climate-resilient energy system. ERCO aims to address challenges posed by growing demand and climate exposure. The objective is to improve resilience and stability of Colombia’s energy system while reducing greenhouse gas emissions.

The investment is expected to generate significant climate impact by increasing renewable electricity generation and reducing dependence on fossil-fuel-based generation.

Gender inclusion and local impact

ERCO currently exceeds the 2X Challenge thresholds for female employment and leadership. Women account for 26% of ERCO’s employees and 33% of its managers.

The company has committed to maintaining and increasing women’s participation across its workforce and leadership teams as it expands. ERCO’s growing portfolio supports industrial and commercial customers with cleaner and more reliable energy solutions.

EU partnership and ambassadorial endorsement

The investment shows the EU’s role in Colombia’s renewable energy transition. According to the project partners, EU foreign direct investment accounts for 80% of non-conventional renewable energy generation in Colombia.

François Roudié, the Ambassador of the European Union to Colombia, highlighted the cooperation. "The partnership demonstrates cooperation between Colombia and the EU in advancing renewable energy, improving power-system resilience and supporting the country’s energy transition," Roudié said.

Ari Nironen is a Senior Investment Manager at Finnfund. Marianne Pallez is a Senior Investment Officer at Proparco. Luis Fernando Gómez is the Chief Financial Officer of ERCO.

ERCO aims to leverage local financing and recycle capital into additional solar and battery storage projects as it expands its renewable energy operations in Colombia.