Credit Line and Technical Assistance for the Blended Finance of Clean Energy, Colombia

Client needs

Colombia had significant renewable energy potential, yet little progress had been made on its transition due to a lack of financial support. KfW wanted to develop a credit line to back renewable energy and energy efficiency projects in Colombia, channeled through Bancóldex, but first needed to know the feasibility of such a program.

How Castalia helped

• Market study on the demand and supply of credit for clean energy projects in Colombia
• Designed a credit line targeting the most viable projects
• Recommended a comprehensive technical assistance program to ensure the credit line’s success, which included a monitoring and evaluation system.

The outcome of our work

Bancóldex used the study to set up its Programa Bancóldex de Eficiencia Energética for hotels, clinics, and hospitals—a $20 million concessional credit line for commercial banks, focusing on air conditioning, control systems, boilers, and solar water heaters. The credit line has inspired a similar instrument launched in Mexico.