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SubscribeCuatrecasas has advised Erco Energía and a European investor on formalizing an agreement with Empresas Públicas de Medellín (EPM) to promote the construction and commissioning of a solar megaproject that will contribute around 400 MWp of capacity to Colombia’s National Interconnected System (SIN).
This transaction crystallizes a strategic alliance between two growing players in the renewable energy market and a consolidated leader in the industry in Colombia, such as EPM. With the formalization of the agreement, the construction, execution, and commissioning of a photovoltaic project will be promoted, whose estimated generation capacity is equivalent to reducing 371,544 tons of CO2 emissions.
"The union of the technical, financial and operational capabilities of these three companies marks a very important step forward in favor of Colombia's energy transition and the strengthening of its energy matrix, through a high-impact project, executed with the best quality standards," said Cuatrecasas Corporate partner Jaime Moya.
The comprehensive collaboration model provides the project with financial and operational viability, optimizing capital costs, and improving the risk profile through a structure that aligns long-term incentives, clear governance mechanisms, and robust standards.
This joint scheme also includes EPM's commitment to purchasing the energy generated by the project in the long term and, once different milestones in the execution are met—including the necessary regulatory and financial conditions—to provide the resources to acquire a majority stake in the project, while Erco and the European investor would maintain a minority stake in it.
The Cuatrecasas team that participated in the transaction was led by partner Jaime Moya, along with lawyers Steffany Serebrenik, Mateo Benjumea, Nicolás Gaviria, and Alejandro Manrique (Corporate); Ana María Sánchez (Infrastructure); and Manuel Gómez, Carlos Méndez, Isabela Saa, and Emilio Torres (Energy).Don’t miss our content
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