(Corrects to gas plant from coal plant in headline and first paragraph)
BOGOTA, Sept 19 (Reuters) - Colombia electricity generator Celsia said on Thursday it has sold a gas plant in the coastal city of Barranquilla to subsidiaries of the U.S.-based Glenfarne Group, LLC for $420 million.
The funds from the sale will “be directed to take advantage of growth opportunities that the company has, via operational subsidiaries in all regions and which combine renewable energy sources with the reliability of thermal generation,” Celsia said in a statement.
In the short term some of the money will be used to pay debts, Celsia said.
Celsia, a subsidiary of holding company Grupo Argos , owns Colombia’s first commercial solar farms.
The Andean country, with 70% of its energy coming from hydropower, is eager to attract investment in wind and solar.
“In the next five years more than 25% of the installed capacity of Celsia in Colombia will come from non-conventional renewable energy,” Celsia’s president Ricardo Sierra said in the statement.
The plant’s buyers are Prime Energia Colombia S.A.S. and Prime Colombia Barranquilla S.A.S., subsidiaries of EnfraGen, LLC, which itself is a subsidiary of Glenfarne Group. (Reporting by Julia Symmes Cobb; editing by Grant McCool)