There are several Mitigation Action Facility-funded projects currently approved for implementation: the Multi-Country – Reactive Power for Energy Savings and the Indonesia – Biogas project. In addition, the Colombia – Energy Communities project, implemented by the Global Green Growth Institute (GGGI), which successfully concluded its 10-month Detailed Preparation Phase (DPP) and is now ready to move into implementation. The DPP served as an intensive, structured process to translate Colombia’s Energy Community vision into a fully operational, investment-ready model.
Key achievements
Over the course of the DPP, GGGI developed a comprehensive Project Proposal fully aligned with Mitigation Action Facility requirements, covering intervention strategy, mitigation impact, financial architecture, safeguards, and implementation roadmap. Beyond proposal development, the DPP functioned as a collaborative design and learning phase, allowing technical, financial, institutional, and social dimensions to be integrated coherently.
To overcome structural barriers and historical reliance on public grants and limited commercial finance, GGGI designed an innovative, market-based financial model, including a revolving Project Preparation Facility (PPF) and a Credit Risk Guarantee to be managed by the National Guarantee Fund (FNG), projected to mobilise over EUR 112 million in private investment.
Structured stakeholder engagement as part of the DPP facilitated extensive consultations with ministries, financial institutions, ESCOs, subnational governments, and community representatives, which informed the financial, technical, and regulatory design.
Cross-cutting priorities were embedded by GGGI, such as Gender Equality and Social Inclusion (GESI), Environmental and Social Safeguards (ESS), and a robust Monitoring, Reporting, and Verification (MRV) system, directly integrated into the Theory of Change and logical framework of the project.
Key learnings
Inclusive and participatory design strengthens legitimacy and quality. Participatory and structured engagement reinforced national ownership and credibility.
Public–private dialogue is essential for bankability. Early interactions with ESCOs, public utilities, and financial institutions addressed risk perceptions and commercial viability, while building trust.
De-risking mechanisms unlock private investment. The Credit Risk Guarantee and PPF design show how tailored risk mitigation fosters financial sustainability, beyond grant dependency.
Governance and adaptive management safeguard delivery ensures quality control and timely delivery. Clear roles, systematic monitoring, and close coordination between GGGI, government focal points, and donor representatives/ the Technical Support Unit (TSU) ensured quality control and timely delivery, while enabling adjustments in response to institutional changes.
Territorial differentiation enhances inclusion. The GESI analysis highlighted relevant disparities between Energy Communities in the National Interconnected System (SIN) and Non-Interconnected Zones (ZNI), confirming that differentiated strategies are necessary to ensure feasibility, acceptance, and long-term ownership.
Gender equality strengthens sustainability. Female participation in governance promotes social cohesion, transparency, and operational continuity. Embedding GESI targets directly into the Theory of Change and MRV framework ensures measurable and structural inclusion.
Challenges and mitigation
- Institutional turnover within key public entities required repeated technical briefings and validations of deliverables.
- Evolving regulations necessitated adjustments to maintain financial and operational viability.
- Complex multi-stakeholder coordination across ministries, financial actors, ESCOs, and communities demanded intensive facilitation and alignment efforts.
GGGI, as Implementation Organisation, mitigated these challenges through sustained political-technical dialogue, structured consultation mechanisms, adaptive management, and close coordination.
Looking ahead – the Implementation Phase
As the project moves into its 60-month Implementation Phase, it does so with solid technical foundations, formal government endorsement, co-designed financial instruments, and a clear phased roadmap.
- Formal government endorsement and institutional commitments secured.
- Co-designed financial instruments ready for operationalisation.
- Phased roadmap and robust project pipeline in place.
- Embedded GESI, ESS, and MRV frameworks ensure inclusive, transparent, and measurable results.
Implementation Phase I will focus on operationalising the financial mechanisms, developing a robust pipeline of bankable Energy Community projects, and strengthening institutional coordination. This will create the conditions for nationwide scaling in Phase II.
Voices from the ground
“Women are also capable of managing electrical and energy components. (…) If we are trained and included, we can close gaps and strengthen our communities. (…) In Putumayo, we are a pluricultural territory, with Indigenous communities, community councils, and conflict-affected populations. Our traditional knowledge and understanding of the territory can contribute greatly to sustainable energy projects. (…) The first challenge is to train communities so they understand how energy communities work and can take ownership of the process. When women are trained, they gain the capacity to lead and participate. We are the face of peace.”
— Fátima Muriel, Founder and Legal Representative, Organización de Mujeres Tejedoras de Vida, Putumayo
“At the National Guarantee Fund, we see the energy transition not only as an environmental challenge, but as a major development driver. That is why we promote guarantee schemes that facilitate access to credit for sustainable initiatives, particularly in territories facing the greatest barriers. (…) We recognize significant potential to bring together technical and financial capacities — combining guarantees, technical assistance, and impact-driven projects — to build an enabling ecosystem where communities can access clean and resilient energy solutions.”
— Ana Carolina Noriega Pitre, Corporate Affairs Professional, National Guarantee Fund (FNG)
“Financial institutions can promote energy communities by building internal capacity and recognizing this model as both profitable and strategic for energy security. (…) ESCOs are fundamental allies, and guarantee institutions such as the National Guarantee Fund are essential to provide certainty for commercial banks. (…) International partners like GGGI play a key role by bringing technical expertise, connecting public and private actors, and helping structure blended finance solutions that allow these initiatives to scale.”
— Alejandra Díaz Agudelo, Sustainability Director, Banco Davivienda
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