TSX-listed Gran Colombia is investing in renewable energy and, through its Segovia operations, will acquire an 11.2 MW solar project in the Tolima region of Colombia.
Gran Colombia has signed a letter of intent with renewable energy developer and independent power producer Renergetica’s Colombia subsidiary.
The Suarez project is the first project of a pipeline under development by Renergetica in Colombia.
“We see the opportunity to invest in renewable energy initiatives, such as the Suarez project, as the next step in doing our part to combat global warming. With the new Suarez plant, approximately 10 300 t of CO2 per year will not be released into the environment. We look forward to partnering with Renergetica to make this solar project a reality,” said Gran Colombia CEO Lombaro Paredes.
Expected to have a 30-year life, the Suarez project will connect to the Colombian National Electric System and will become operational later in 2020.
The capital cost of the Suarez project, expected to total about $8-million, may be financed by up to 70% through local banks involved in “green financing” and will benefit from special tax incentives in Colombia on investments in renewable energy.