- KfW has agreed to support the rollout of renewable energy and the energy transition in Colombia with EUR 200 million
- Companies whose decentralised green generation capacity falls below 0.1 MW should be eased.
KfW, a German state-owned development bank, has agreed to support the rollout of renewable energy and the energy transition in Colombia with EUR 200 million.
The funds fall under the second phase of the Programme for Sustainable and Resilient Development, which is to be granted as a loan on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), according to KfW.
The second phase of the programme includes building an energy transition roadmap for Colombia, with a keen target of increasing the amount of non-conventional renewables, chiefly solar and wind power, from its current level of 0.2% to 12% in the country’s energy mix. Colombia’s power generation mix is mostly hydropower based, with a share of 66% in the country’s electricity mix.
In addition, the programme aims to aid the connectivity between the power grid and remote regions to enable the local population to consume climate-friendly electricity. Also, companies whose decentralised green generation capacity falls below 0.1 MW should be eased.
Speaking about the initiative, KfW executive Christiane Laibach stated that Germany supports Colombia in making its policy more environmentally friendly while also creating an enabling environment for private and public investments in green projects.
The loans agreed to follow another financial package of EUR 150 million that KfW provided to Colombia at the end of 2021 as part of the programme’s first phase.
The programme is carried out in cooperation with Agence Francaise de Developpement (AFD), Inter-American Development Bank (IDB), Corporacion Andina de Fomento (CAF) and Banco Centroamericano de Integracion Economica (BCIE).