Clifford Chance acts on Shangri-La solar plant financing
Clifford Chance has advised IDB Invest and Bancolombia in connection with the 473.77 billion Colombian pesos (~$113 million) financing for the development, construction and operation of the 201 MWp Shangri-La solar PV power plant in Tolima, Colombia.
Once completed, the project will be one of the largest solar plants in Colombia and the largest in Tolima. The plant is expected to be operational by the end of 2025 and produce enough energy to power more than 214,000 homes and avoid the emission of around 162,000 tonnes of CO2 per year. This transaction is the largest solar project financed by IDB Invest in Colombia and marks the entry of clean energy developer Atlas Renewable Energy into the Colombian market.
The project is expected to contribute to and promote several United Nations Sustainable Development Goals (SDGs), including SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), SDG 13 (Climate Action), and SDG 17 (Partnerships for the Goals).
Partner Fabricio Longhin (pictured left) commented: ‘Colombia has set itself the ambitious goal of switching 70% of its energy to renewable sources by 2030. The private sector is committed to this goal and is eager to develop renewable energy projects. In turn, the financial sector has shown an increased appetite to finance them. Shangri-La is clear evidence of this, and we are pleased to contribute to our clients’ dedication to mitigating the effects of climate change.’
Julian Hurtado Vallejo (pictured right), senior associate, added: ‘This type of strategic alliance between commercial banks, multilaterals and power generators is key to improving Colombia’s energy sector. For years, Colombia’s electricity supply has relied on hydropower, which has recently led to an energy crisis due to the El Niño phenomenon. The successful completion of this project marks a significant achievement in our clients’ efforts to help overcome this crisis and consolidate the Colombian energy sector.’
Working with Longhin and Hurtado Vallejo were associates Fernando Liu and Adele Irwin and law clerks Adriana Cabal and Daniela Hernández, with additional support from partner Paul Koppel and associate Thomas Koh on ERISA matters.
