Organización Terpel S.A. to acquire 100% of the 26.4 MWp Pétalo del Norte de Santander I solar plant in northern Colombia, pending regulatory approval.
Facility generates over 45 GWh annually, serving about 32,600 people and avoiding roughly 13,276 tonnes of CO2 each year.
Transaction marks Climate Fund Managers’ first exit in Latin America, following an $18 million investment through its EU supported Climate Investor One fund.
In the municipality of La Esperanza, Norte de Santander, a 26.4 MWp solar plant that only began dispatching electricity in August 2025 is already changing hands. Climate Fund Managers and Colombian developer Erco Energía have agreed to sell their respective interests in Pétalo del Norte de Santander I to Organización Terpel S.A., one of Colombia’s largest energy distribution and retail companies. The transaction is subject to regulatory approvals.
For Colombia’s energy transition, the deal reflects a deeper shift. Strategic domestic players are moving from distribution and retail into generation, while international climate funds are beginning to realize exits in markets once considered high risk.
Asset Performance And Climate Metrics
Pétalo del Norte de Santander I generates more than 45 GWh of renewable electricity each year. That output is enough to serve approximately 32,600 people while avoiding an estimated 13,276 tonnes of CO2 emissions annually.
The project was developed jointly by Erco Energía and Climate Fund Managers, a blended finance investment manager operating across Africa, Asia, and Latin America. Climate Fund Managers invested about $18 million in development and construction capital through Climate Investor One, its EU supported renewable energy infrastructure fund.
For Climate Fund Managers, the asset was its first energy project in Latin America. The sale now represents its first regional exit, an important data point for investors tracking capital recycling and proof of concept in emerging market clean energy platforms.
Development, Governance, And Community Impact
Beyond megawatts and gigawatt hours, the project carried measurable social and governance benchmarks. Construction created 270 jobs, with 64% filled by local workers and women representing 30% of the workforce. Around $125,000 was invested in community development initiatives, benefiting an estimated 2,400 people in surrounding communities.
The project was structured to comply fully with IFC guidelines, a governance layer that matters to development finance institutions and institutional co investors assessing environmental and social risk.
Juan Paez, Head of Latin America at Climate Fund Managers, said: “We are proud to have invested in Pétalo del Norte de Santander I from its development stages. Working alongside our partners, we are proud to have delivered a high-quality renewable energy asset that not only fully complies with IFC guidelines but has contributed significantly to improving the living standards of the local communities. While we will remain in the area to continue our investment in Project Pradera, we are pleased to see that Pétalo will enter its next phase under the stewardship of a responsible investor like Organización Terpel.”
His remarks highlight a dual strategy common among blended finance managers: demonstrate bankability through disciplined execution, exit once assets are operational, and redeploy capital into earlier stage pipelines.
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Strategic Shift For Terpel
For Organización Terpel S.A., the acquisition supports a broader repositioning. Traditionally known as a fuel distribution and retail company, Terpel is expanding its participation in renewable energy generation. Owning a 100% stake in a grid connected solar facility strengthens its exposure to Colombia’s clean energy buildout and hedges long term transition risk tied to fossil fuel retail.
Colombia’s policy framework has encouraged diversification of the generation mix, with solar and wind capacity accelerating under auction mechanisms and regulatory reforms. As domestic corporates integrate generation assets, the line between traditional energy distributors and power producers is narrowing.
What Executives And Investors Should Watch
For C suite leaders and institutional investors, the transaction offers three signals. First, exit pathways in Latin American renewables are becoming more credible, particularly where projects meet international governance standards. Second, strategic buyers are stepping in as long term owners, reducing reliance on purely financial sponsors. Third, social metrics and local impact are increasingly embedded in asset value, not treated as peripheral reporting.
As capital continues to rotate from development to operation, Colombia’s renewable market is entering a phase where scale, compliance, and local alignment determine who captures value. For global climate funds and regional corporates alike, Pétalo del Norte de Santander I provides a case study in how blended finance, regulatory support, and corporate transition strategy intersect in practice.
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