The Petro Government was promised to go into debt for renewable energy

After a few weeks of tension, this Wednesday – September 25 – the representatives of the Public Credit Commission and members of the National Government, led by the Ministry of Finance and the National Development Finance Company, met to discuss these debt proposals were presented to the Legislature and at the time it was noted that they were not moving forward.

One of the people present at this meeting was the director of Public Credit of the Minhacienda, José Roberto Acosta, who resolved differences with the commission and after a pleasant conversation, achieved the basic favorable opinion for the National Development Finance Company to contract an external loan. by the IDB and the Climate Investment Funds (CIF) for up to USD $138.5 million or equivalent in other currencies.

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According to Francisco Lozano, president of the FDN, a company of the Bicentenario Group, the resources will be used to finance renewable energy projects within its Energy Transfer Assistance Program, generating These are important resources for one of the most important bets of President Gustavo Petro.

“This is good news for Colombia and for progress in terms of a balanced energy transition, because with these resources we will be able to contribute to closing the gap in funding that these projects face, offers resources for nearly USD $140 million to be developed by. competitive and long-term rates,” he said.

This official said “besides that, we will be available to the department and companies with all our experience in Project Finance and our financial products to attract other financiers to contribute to their financing, which is how we promote 4G and 5G road projects.”

For the National Government, after approval by Congress, a milestone has been marked, as this is the first time that resources from concessional funds for energy transfer will be paid in the country, while state that these advances will allow them to be. resources provided in one year and not in four, as was originally planned, a situation that will lead to faster development.

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It should be noted that the Energy Transition Support Program aims to promote the decarbonization of the Colombian economy, by financing Just Energy Transition projects and strengthening the capacities and instruments of the National Development Finance Agency. for access to thematic green capital markets for a period of up to 5 years.

“The first part of the Program, with resources of $137.7 million, will focus on increasing the funding of Non-Conventional Sources of Renewable Energy (FNCER) projects and the scaling of enabling technologies with the FDN. In this sense, the FDN will provide solutions for FNCER, energy communities and energy storage,” explained Francisco Lozano.

Renewable energy

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Likewise, with these resources solutions for flexibility will be structured to the National Interconnected System, such as transmission lines or distributed energy facilities and the use of advanced metering infrastructure and projects will be financed for the production, management, transport and use of green hydrogen, as well as electromobility infrastructure and assets which will increase demand. of these funds and the construction of electric vehicles.

“The second part, for USD $ 270 million, will be used to strengthen the capabilities of the FDN for the identification, planning and management of a portfolio of climate projects. The aim is to design a roadmap to identify and plan the potential for regional investments that include interventions that favor nature and/or climate,” concluded the entity.

In this commitment, based on the Government’s approaches, we also want to strengthen the risk analysis and climate change systems, so that national and regional authorities can anticipate to the effect that scourges such as global warming are causing on the country.