The project has previously signed a 15-year Power Purchase Agreement (PPA) with BTG Pactual Comercializadora de Energía (BTG), a Colombian energy trading subsidiary of Banco BTG Pactual S.A. Brazil. The PPA will cover approximately 85% of the estimated production, with the remaining production to be sold in the Colombian electricity market. The PPA will be denominated in Colombian Pesos and inflation adjusted based on Colombia’s Producer Price Index.

“Financial close marks a key step in advancing the Barzalosa project in Colombia. With a robust financing structure and a long-term PPA in place with a strong offtaker, the project is well positioned for construction and delivery. We are pleased to support Colombia’s transition towards clean energy,” says Terje Pilskog, CEO of Scatec.

Scatec holds 65% of the equity in the project, which has been developed in partnership with Norfund who will provide the remaining equity. The total capital expenditure (capex) for the project is estimated at USD 121 million and will be financed by a combination of non-recourse debt and equity, with leverage of approximately 70%. The senior Lenders for the project are Bancolombia and Financiera de Desarrollo Nacional (FDN).

Scatec is the lead developer of the project and will be the designated Engineering, Procurement and Construction (EPC) provider with an EPC scope of approximately 70% of capex. Scatec will also provide Operations & Maintenance (O&M) and Asset Management (AM) services for the plant. The project is expected to reach Commercial Operation Date (COD) in the first half of 2027.