Scatec Breaks Ground on 130MW Solar Project in Colombia’s Energy Transition

Norwegian renewable energy producer Scatec has officially broken ground on its 130MW solar power plant in Colombia, a move that signals a major expansion of its footprint in the Andean region. The project, often identified as the Mendihuaca solar plant located in the Magdalena department, represents Scatec’s first large-scale utility project in the country. This development comes at a critical juncture for Colombia, which is aggressively seeking to diversify its energy matrix beyond its traditional reliance on hydroelectric power. By integrating 130MW of solar capacity, Scatec is positioning itself as a key partner in Colombia’s long-term energy security strategy.

Colombia’s energy landscape is currently dominated by hydropower, which accounts for approximately 70% of the nation's electricity generation. While renewable, this reliance creates significant vulnerability during El Niño cycles, which bring prolonged droughts and threaten the stability of the national grid. The Colombian government, through the Ministry of Mines and Energy and the Mining and Energy Planning Unit (UPME), has prioritized the rapid deployment of non-conventional renewable energy (NCRE) sources like solar and wind to provide a reliable counter-cyclical balance to hydro. Scatec’s 130MW project is a direct response to this policy mandate, providing a stable source of power during the dry seasons when reservoir levels are low.

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Colombia’s energy landscape is currently dominated by hydropower, which accounts for approximately 70% of the nation's electricity generation.

From a financial and operational perspective, the project is backed by a 15-year Power Purchase Agreement (PPA), which ensures long-term revenue stability for Scatec. This model is central to Scatec’s strategy of acting as an Independent Power Producer (IPP) in emerging markets, where long-term contracts mitigate the risks associated with infrastructure investment. The 130MW plant is part of a broader 1.9GW global backlog that Scatec is currently working to convert into operational assets. The company’s ability to move from financial close to construction in the Colombian market demonstrates its operational maturity and its ability to navigate the complex regulatory and environmental permitting processes inherent in South American energy markets.