During COP16, IDB Invest, DUE Capital and Services, BBVA, Bonus Gestión de Activos and Financiera de Desarrollo Nacional (FDN) signed a memorandum of understanding to support the development of two important solar projects in the Colombian Amazon.
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During the COP16 held in Cali last October, DUE Capital and Services, together with IDB Invest, BBVA, Bonus Gestión de Activos and FDN joined together to bring clean and continuous light to the communities of Putumayo and Vaupés. This means less use of diesel, better quality of life and more well-being for the inhabitants of the region.
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This initiative aims to provide clean and sustainable energy to remote communities, improving their quality of life and contributing to the protection of the environment.
The projects include the construction of two off-grid solar plants in rural areas of the Amazon region: Centenaryin Puerto Leguízamo (Putumayo), and Matakaviin Mitú (Vaupés).
Both facilities will be equipped with battery storage systems, which will allow power to be supplied 24 hours a day, reducing dependence on diesel-based generators.
The total cost of the project amounts to approximately US$40 millionwith an investment of US$4 million by IDB Invest.
Impact on local communities and the environment
These solar plants not only represent progress in terms of access to clean energy, but also have a direct impact on the indigenous and rural communities of the region.
By providing reliable and sustainable energy, the quality of life of local residents, who have traditionally relied on fossil fuels, such as diesel, to generate electricity, will be significantly improved.
In addition, the initiative will contribute to the fight against climate change. It is estimated that the projects will avoid the use of approximately 2.21 million gallons of diesel per yearwhich will reduce greenhouse gas emissions and improve air quality in the Amazon region.
This action will not only support the well-being of the communities, but will also contribute to the environmental health of the region, promoting a more sustainable development model.
A collaboration model for the energy transition
The main sponsor of these projects is DUE Capital and Servicesa company with more than ten years of experience in the development of renewable energy in remote areas of Colombia.
The company has historically worked in the Amazon, providing sustainable energy solutions that not only benefit local communities, but also contribute to Colombia’s national energy transition goals.
The project has the support of important financial actors, such as BBVA, Asset Management Bonus and FDNwho contribute their experience in sustainable financing. This multidisciplinary collaboration ensures that projects are not only financially viable, but also maximize social and environmental benefits for affected communities.
Alignment with sustainable development goals
The solar projects in the Colombian Amazon are aligned with several of the Sustainable Development Goals (SDG) of the UN. In particular, they contribute to SDG 7: Affordable and clean energyby providing access to renewable energy in remote areas; to the SDG 13: Climate Actionby reducing dependence on fossil fuels and reducing greenhouse gas emissions; and to SDG 15: Life on terrestrial ecosystemsby protecting Amazon ecosystems and promoting biodiversity in the region.
IDB Invest’s commitment to sustainability
IDB Invest, part of the Inter-American Development Bank (IDB) Group, has played a crucial role in financing projects that address the challenges of climate change and biodiversity in Latin America and the Caribbean. With a portfolio of US$21 billion in managed assets, IDB Invest is committed to creating innovative financial solutions that close financing gaps for sustainable projects in the region.
Support for local initiatives and economic development
This project also reinforces the commitment of the institutions involved with the economic and social development of Colombia. BBVAone of the main foreign investors in the country, has stood out for its participation in sustainable financing initiatives. Through its presence in Colombia, BBVA has mobilized important resources for projects that promote sustainability and social well-being.
Asset Management Bonusfor its part, is a private equity fund manager specialized in infrastructure and energy, which has invested in this type of projects in order to generate attractive risk-adjusted returns, contributing to the creation of a more sustainable investment market.
Finally, FDN (Financiera de Desarrollo Nacional) has been a key actor in the financial structuring of infrastructure projects in Colombia. With a focus on long-term financing, FDN has facilitated access to competitive resources for strategic projects like these, with the goal of overcoming financing barriers and promoting sustainable development.
A cleaner and more sustainable future for the Amazon
This collaboration agreement marks a significant step towards a more sustainable future for the Amazon region of Colombia. Through the construction of solar plants Centenary and Matakaviit is expected to not only improve access to energy in these communities, but also contribute directly to global efforts to mitigate climate change, protect biodiversity and promote the use of renewable energy sources.
