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