AES Colombia, Soluna, and FDN Finance Solar Energy Project for La Alta Guajira Communities

In a public-private partnership, AES Colombia, Soluna Energía S.A.S. E.S.P. (Soluna), and the Financiera de Desarrollo Nacional S.A. (FDN) have secured financing for a project to deliver solar energy to over 800 households in La Alta Guajira. The initiative, named Sol-Kai, aims to provide electricity access to more than 3,000 residents in the initial phase.

The project is slated for development within communities located in the area of influence of the Jemeiwaa Ka’l wind cluster, operated by AES Colombia (The AES Corporation, NYSE: AES) in the municipality of Uribia. The first stage will encompass the JK1 and JK2 wind farms, which have a total capacity of 259 MW.

FDN, a development bank, structured the project’s financing, approving a senior loan of $11.6 billion COP and a liquidity line of $1.12 billion COP. Additional funds for the project are being contributed by AES Colombia and Soluna as investors. These funds will be managed through a trust administered by Fiduciaria Bogotá S.A.

According to FDN President Francisco Lozano, the project’s financing is intended to address social gaps in La Guajira, a region where 31.4% of the population lacks access to electricity. The project aims to provide continuous 24/7 power, which could facilitate educational and productive activities for the beneficiary population.

The initiative aligns with AES Colombia’s sustainability strategy and contributes to Sustainable Development Goal 7: affordable and clean energy. Its objective is to supply clean energy to Wayuu indigenous communities in off-grid rural areas. Federico Echavarría, general manager of AES Colombia, stated that the project, which has been under structuring for several years, demonstrates the company’s commitment to renewable energy development and contributes to an energy transition.

The first phase of the project is projected to benefit 840 households, with the potential to expand to an additional 3,000 homes. The solar technology will enable residents to power appliances such as refrigerators, computers, and mobile phone chargers.

The project’s financing includes resources from a special line of the Climate Investment Funds (CIF) and the Inter-American Development Bank (IDB), which are being channeled through FDN. This marks the first disbursement from this line, which is designed to support projects with social and environmental impacts, particularly those promoting renewable energy for a just energy transition. The project is also noted as the first of its kind to be financed via a project finance structure, potentially setting a precedent for its replication in other Colombian communities without electricity access.

Soluna will be responsible for the operation and maintenance of the project, ensuring a sustainable service at a subsidized rate. The implemented scheme is designed to be affordable for the beneficiary population.

Pictured from left to right: Daniel Vallejo, CEO of Soluna, Federico Echavarría, CEO of AES Colombia, and Francisco Lozano, President of FDN. Photo credit FDN