August 28, 2026
Colombia's energy transition has just received a new injection of international capital. Erco Energía, a Colombian company specializing in solar power generation and energy infrastructure solutions, closed a Series C investment round of US$129 million in equity, one of the largest capital flows announced in the country in 2026.
The transaction included participation from Next Utility Ventures, an investment vehicle of the Ventures EPM program managed by Axon Partners Group, as well as the international funds Augment Infrastructure, Norfund, and Endeavor Catalyst.
The new capital will enable Erco to accelerate the development and construction of power generation projects in different regions of Colombia, expand its installed capacity, and contribute to the diversification of the national energy mix. Unlike debt financing, the transaction was structured as an equity investment, which also allows the company to preserve its borrowing capacity to finance specific projects through project finance structures.
Founded in Medellín in 2011, Erco has evolved from its early solar energy projects into a platform that integrates renewable generation, storage, electric mobility, asset management, digital energy trading, electrification, and energy efficiency.
The company claims to have built more than 2,600 projects and to have exceeded 450 MWp of installed capacity, primarily in Colombia. Among its largest projects is Andes, a solar initiative of approximately 400 MWp that it is developing in partnership with Empresas Públicas de Medellín (EPM).
This growth is precisely one of the factors driving investor interest. The funding round is not focused solely on financing an early-stage technology company, but rather on supporting a platform that already has assets, projects in development, and experience in energy infrastructure.
"This transaction confirms that climate-tech and the energy transition are, in Latin America, a mature investment thesis, capable of generating returns alongside real impact," said Nicolás Ríos, a partner at Axon Partners Group and head of the firm's sustainability and climate-tech strategy for Latin America.
Axon had previously participated in Erco's Series B round, which closed in 2023. According to the firm, during this period it supported the company in institutionalization, corporate governance, and preparations to attract international capital.
The US$129 million also takes on significance when compared to the recent performance of the Colombian investment market. According to data from KPMG, in 2025, the country's startups carried out 131 transactions that mobilized approximately US$857 million in equity and venture debt.
Erco's funding round, however, must be understood within a broader context than that of traditional startups. The company operates in energy infrastructure, and its business model requires large amounts of capital to develop generation assets; therefore, a US$129 million round represents a different kind of investment compared to typical venture capital investments.
Even so, the size of the deal places it among the most significant equity transactions announced by a Colombian company in 2026. Cuatrecasas, the law firm that provided legal counsel to Erco during the closing, also described the deal as one of the largest capital raises in Colombia this year.
