BBVA advises EPM in setting up a partnership on the development of a solar project in Colombia

BBVA CIB has acted as sole financial advisor to EPM in setting up a partnership with ERCO Energía and a European investor regarding one of Colombia’s most ambitious solar projects. The initiative, which involves the development of a photovoltaic plant with an installed capacity of approximately 400 MWp, further consolidates BBVA’s leadership as a reference advisor for energy transactions across South America.

This agreement represents a significant milestone in the advancement of one of the country’s most relevant solar initiatives, with an estimated investment of USD 400 million. The plant will have a capacity of approximately 400 MWp, enough to supply electricity to over 360,000 people. In addition, the energy produced by the plant will be equivalent to removing around 90,000 gasoline-powered vehicles from circulation each year.

Under the terms of the agreement, EPM will commit to the long-term purchase of the energy generated by the project and, once key technical, regulatory and financial milestones are met, will acquire a majority stake. ERCO and the European investor will remain as strategic partners, contributing their technical, financial and operational expertise to ensure the project is developed in line with the highest industry standards.

“This transaction underscores our commitment to the development of renewable energy in Colombia and to supporting our clients in delivering landmark energy projects for the country’s energy transition,” said Jorge Arrastia, Managing Director responsible for Advisory South America at BBVA. “Having participated as financial advisor for one of the largest energy companies in the country in relation to one of Colombia’s largest solar initiatives, with the involvement of a top-tier international investor, reflects the market’s continued trust in our expertise and our M&A capabilities complemented by value-added local knowledge and cross-border capabilities.”

EPM also highlighted the significance of the agreement. “Colombia needs new energy generation projects to help close the current gap between supply and demand, and in doing so, reduce the risk of a potential blackout in the face of future El Niño events. Through this agreement, EPM reaffirms its 70-year commitment to delivering clean, reliable and sustainable energy to the country,” stated John Maya Salazar, CEO of EPM.

With this mandate, BBVA further strengthens its position as a leading advisor in renewable energy and M&A transactions across the region, supported by a proven track record in landmark projects within the sector. In addition to contributing to the diversification of the Colombian energy matrix, this transaction is closely aligned with the country’s energy transition goals. BBVA remains firmly committed to supporting projects that drive sustainable development and energy innovation in Colombia and throughout the region.