EU-funded EDFI RET guarantee backs Proparco and Finnfund investment in ERCO to accelerate Colombia’s solar expansion

Risk-sharing under the European Union's EFSD+ programme and Global Gateway strategy supports ERCO's growth into a leading renewable energy platform, helping strengthen Colombia's energy security and clean energy transition.

Brussels and Bogotá, 25 Sep 2026 - EDFI Management Company (EDFI MC), through its Renewable Energy Transition (RET) Guarantee, is supporting Proparco's and Finnfund's investment in ERCO Energia S.A.S., a leading Colombian integrated solar energy platform. Funded by the European Union under the European Fund for Sustainable Development Plus (EFSD+) and implemented by EDFI MC as part of the EU's Global Gateway strategy, the guarantee helps de-risk the investment and enables European development finance institutions to support ERCO's next phase of growth in Colombia.

The investment is part of a larger equity financing round led by an international consortium of development finance institutions and impact investors and led by Augment Infrastructure Managers. The funds will be used to finance the construction and expansion of solar energy assets that are expected to contribute significantly to Colombia's renewable energy capacity growth over the coming years.

"Expanding solar generation is essential to diversify Colombia's hydropower-dependent electricity system and strengthen its resilience to climate-related volatility. Through the EU-funded EDFI RET guarantee, EDFI MC is helping unlock capital for a more reliable, secure and climate-resilient energy future," said Dietske Simons, Chief Partnership Officer of EDFI MC

The investment will help ERCO expand from its historical EPC contractor model into an independent power producer model, which requires significantly greater capital commitments and access to long-term financing. By sharing part of the transaction risk, the EU-funded EDFI RET guarantee helps enable a larger commitment from European development finance institutions to support a company with high transformational potential for Colombia's renewable energy market.

"The EU is a natural ally for Colombia in advancing its energy transition, greening power generation and building a more competitive, resilient and secure energy system, capable of responding to challenges such as El Niño and geopolitical crises. We are proud to support a European DFI investment in an emerging Colombian company such as ERCO, partner of the European clean-tech ecosystem, using an innovative guarantee tool that enables investments for renewable energy projects. It is a powerful example of how Colombia and the EU can build a virtuous partnership around the energy transition", said François Roudié, Ambassador of the European Union to Colombia.

EDFI RET is a joint guarantee programme designed by the members of the EDFI Association and EDFI Management Company under EFSD+, the financing arm of the EU's Global Gateway strategy. The programme is designed to de-risk debt and equity financing for renewable energy investments by European development finance institutions and their co-investors across partner countries.

About EDFI Management Company

EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. For more information, visit https://www.edfimc.eu

About the EDFI Renewable Energy Transition (RET) Programme

The EDFI Renewable Energy Transition (RET) Programme is a joint EFSD+ guarantee programme developed by European Development Finance Institutions and EDFI Management Company under the EU's Global Gateway. With a guarantee envelope of up to €332 million, the Programme supports debt and equity investments in renewable energy projects-including wind, solar, hydro, biomass, geothermal, and green hydrogen-across Sub-Saharan Africa, Latin America and the Caribbean, and Asia and Pacific. RET aims to increase access to clean energy, advance the Paris Climate Agreement and Sustainable Development Goals, and accelerate the energy transition in high-impact markets. For more information see https://edfimc.eu/what-we-do/renewable-energy-transition-ret/

About EFSD+

The European Fund for Sustainable Development Plus (EFSD+) is the financing arm of the EU's Global Gateway strategy. It provides guarantees and blended finance instruments to support investments that contribute to sustainable development, particularly in fragile and emerging markets.

About Global Gateway

Global Gateway is the European Union's strategy to boost smart, clean, and secure connections in digital, energy, and transport sectors, and to strengthen health, education, and research systems across the world. It aims to mobilise up to €300 billion in investments between 2021 and 2027 to support sustainable and trusted partnerships globally.