EIB Global and Enel Colombia Partner to Boost Renewable Energy and Grid Infrastructure with $300 Million Loan

EIB Global and Enel Colombia Partner to Boost Renewable Energy and Grid Infrastructure with $300 Million Loan

(IN BRIEF) EIB Global, a division of the European Investment Bank, has provided Enel Colombia with a $300 million loan to support the development of renewable energy projects and upgrades to the company’s power distribution infrastructure. This loan, backed by a SACE guarantee, will fund the construction of solar photovoltaic plants with a total capacity of 486 MW and the expansion of Enel Colombia’s power grid, serving over 3.7 million customers. This financing aligns with the EU’s Global Gateway Investment Agenda and aims to enhance Colombia’s energy transition while addressing the country’s infrastructure needs. The collaboration builds on EIB’s existing partnership with Enel and SACE in Latin America, furthering efforts to reduce the region’s reliance on non-renewable energy sources.

(PRESS RELEASE) LUXEMBOURG, 11-Oct-2024— /EuropaWire/ — Enel Colombia has secured a $300 million loan from EIB Global, a division of the European Investment Bank (EIB), to bolster renewable energy generation and upgrade its power grid infrastructure. This financing will support the development of solar photovoltaic (PV) plants with a combined capacity of 486 MW, alongside enhancements to the company’s power distribution network. This investment, backed by the Italian Export Credit Agency (SACE) through a guarantee, helps insulate the loan from exchange rate fluctuations by utilizing a synthetic product. Notably, this marks the EIB’s first such loan granted to a subsidiary of the Enel Group.

EIB’s collaboration with Enel and SACE aligns with the European Union’s Global Gateway Investment Agenda, aiming to accelerate sustainable development across Colombia. The loan is a key element of EIB’s framework for financing Enel Colombia’s clean energy initiatives and is unique as the first EIB product of its kind involving Enel.

Specifically, the loan will fund the construction of the Guayepo I and II solar PV plants, which together offer approximately 486 MW in generation capacity. Additionally, it will drive improvements in Enel Colombia’s power distribution network, which serves over 3.7 million customers in Bogota. These upgrades will increase the network’s capacity, facilitate new connections, and promote e-mobility initiatives in line with Bogotá’s 2030 regional development goals.

This agreement builds upon the successful partnership between EIB, Enel, and SACE in Latin America, where a multi-country, multi-business financing program of up to $900 million is already in place. EIB Vice-President Ioannis Tsakiris emphasized that this project contributes to narrowing infrastructure gaps in Colombia and supports the country’s shift towards a renewable energy matrix. He noted that the collaboration demonstrates the continued success of EIB’s relationship with Enel and SACE.

Enel CFO Stefano De Angelis echoed these sentiments, highlighting how this agreement underscores Enel’s commitment to sustainability. The partnership will further strengthen Enel’s strategy for developing renewable energy and grid infrastructure, contributing to the energy transition and advancing the UN’s Sustainable Development Goals (SDGs).

SACE’s Chief Business Officer, Valerio Perinelli, added that this project exemplifies the enduring partnership between the EIB, Enel, and SACE. He emphasized the strategic importance of the energy transition in Latin America and how SACE’s presence in Bogotá will continue to play a critical role in supporting these efforts.

About the EIB

The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB brings the experience and expertise of in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms – loans at competitive interest rates and with durations aligned with the projects it finances. Through our partnerships with the European Union and other donors, we can provide grants to further improve the development impact of the projects we support.

About EIB Global in Latin America

EIB Global has been providing economic support for projects in Latin America since 2022, facilitating long-term investment with favourable conditions and offering the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of around €14 billion to support more than 160 projects in 15 countries in the region.

About the Global Gateway initiative

EIB Global is a key partner in the implementation of the European Union’s Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain. Alongside our partners, fellow EU institutions and Member States, we aim to support €100 billion of investment (around one-third of the overall envelope of the initiative) by the end of 2027, including in Colombia and Latin America.

About SACE

SACE is the Italian financial insurance company specialised in supporting the growth and development of businesses and the national economy through a wide range of tools and solutions to improve competitiveness in Italy and worldwide. For over 40 years, SACE has been the partner of reference for Italian companies exporting to and expanding in foreign markets. SACE also cooperates with the banking system, providing financial guarantees to facilitate companies’ access to credit. This role has been reinforced by the extraordinary measures introduced by the so-called Liquidity Decree and by the Simplifications Decree. With a portfolio of insured transactions and guaranteed investments totalling €156 billion, SACE serves over 26 000 companies, especially small and medium businesses (SMEs), supporting their growth in Italy and in around 200 foreign markets, with a diversified range of insurance and financial products and services.

About Enel

Enel is a multinational power company and a leading integrated player in the global power and renewables markets. At global level, it is the largest renewable private player, the foremost electricity distribution network player by number of grid customers served and the biggest retail operator by customer base. The Enel Group is the largest European utility by ordinary EBITDA[1]. Enel is present in 28 countries worldwide, producing energy with more than 88 GW of total capacity. Enel Grids, the Group’s global business line dedicated to the management of the electricity distribution service worldwide, delivers electricity through a network of 1.9 million kilometres with 69 million end users. Enel’s renewables arm Enel Green Power has a total capacity of around 64 GW and a generation mix that includes wind, solar, geothermal and hydroelectric power, as well as energy storage facilities installed in Europe, the Americas, Africa, Asia and Oceania. Enel X Global Retail is the Group’s business line dedicated to customers around the world, with the aim of effectively providing products and services based on their energy needs and encouraging them towards a more conscious and sustainable use of energy. Globally, it provides electricity and integrated energy services to around 58 million customers worldwide, offering flexibility services aggregating 9 GW, managing around 3 million lighting points, and with 27 300 owned public charging points for electric mobility.

[1] Enel’s leadership in the different categories is defined by comparison with competitors’ FY2023 data. Fully state-owned operators are not included.

Media Contact:

Enrico Possenti
e.possenti@eib.org
+352 4379 – 82144

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank