Enabling Ecopetrol’s energy-transition strategy in Colombia

January 15, 2025

Jorge Andrés Carrillo, CEO of Interconexión Eléctrica (ISA), talks to The Energy Year about how Ecopetrol’s purchase of ISA has benefitted both companies, the importance of ISA for Ecopetrol’s portfolio and ISA’s transmission projects and infrastructure. ISA is a public utility company dedicated to the construction and management of transmission, road and telecommunications infrastructure.

How has the Ecopetrol Group diversified its portfolio by becoming the majority stakeholder of ISA, and how has ISA benefited from this acquisition?
ISA and Ecopetrol are two world-class companies that have combined technical capabilities and a first-class team to become the most important energy conglomerate on the continent. We are leaders in accelerating the energy transition in Colombia and Latin America.
Being a part of the Ecopetrol Group has allowed us to strengthen excellence in practices such as care for life, with demanding health and safety indicators; cybersecurity policies, solutions and training; and financial control through the implementation of the Sarbanes-Oxley Act.
In addition, as part of Ecopetrol’s sustained growth, we contribute significantly to its EBITDA (16% in the first half of 2024), and our aspiration is for this percentage to increase by 2040. We are also a key partner in the development of energy solutions that will facilitate the transition.
To this end, we are working on fronts such as energy storage, self-generation solutions with renewable energies for Ecopetrol’s self-consumption and energy efficiency. In fact, with the USD 2 billion of projected investment in new electricity businesses in our 2030 strategy, we expect to cover around 30% of the Group’s self-generation and energy storage needs, thereby driving progress towards the energy transition.

How important will ISA become in the Ecopetrol Group’s portfolio in the coming years, and what is the company’s growth strategy?
ISA’s contribution to the Ecopetrol Group’s strategy is fundamental, as its focus is on energy transition and low-emission businesses. In this context, growth in transmission and new-energy businesses are essential levers to achieve this objective, given that these are sectors with a natural and direct impact on the energy transition in any country.
In the coming years, we expect to continue on the growth path outlined in the ISA2030 Strategy, with a view to moving towards a new strategic cycle by 2040, which will allow us to consolidate our position as the most important energy conglomerate in the region.

 

What is the company’s role in transporting electricity in Colombia, and what transmission projects have you recently been involved in?
ISA is the leading energy transmission company in Colombia. Through its subsidiaries ISA Intercolombia and Transelca, it operates close to 15,000 kilometres of transmission line circuits, equivalent to 65% of the country’s entire high-voltage network. We are present in 22 of the 32 departments and have 99.94% availability of the assets that are a part of the National Interconnected System, which guarantees a reliable and robust high-voltage energy network.
We are currently building projects in Colombia in the north of the country and the Santander region, which will add close to 1,000 kilometres of circuits to the grid. These projects will strengthen the transmission system in the Caribbean region and the centre of the country, facilitating the integration of renewable energies that drive the energy transition.

How is ISA adapting its transmission infrastructure to facilitate the integration of new clean energy sources into the grid, and in what other ways is ISA contributing to Colombia’s energy transition goals?
ISA, as the most relevant player in power transmission in Colombia, contributes to the country’s objectives by consolidating an effective and resilient grid. We manage not only the infrastructure but also the human talent, new technologies, the supply chain and financing. In addition, we are also involved in the regulatory and management front of projects, always aiming to land new opportunities and incorporate novel solutions.
We also implement measures to mitigate the impact of extreme conditions resulting from climate change. One of our biggest challenges is adapting electricity infrastructure to maintain the robustness of grids, which requires more investment in renewal, expansion and modernisation, as well as the incorporation of new technologies and more government commitment to regional integration.
Among the projects facilitating the energy transition, our company ISA CTEEP developed the first large-scale battery-energy storage project in Brazil. This system provides back-up power during power shortages for 2 million people on the southern coast of the state of São Paulo, the most important tourist area in the state.
Between 2023 and 2024, ISA and its subsidiaries invested more than USD 800 million, of which close to USD 500 million went to strengthening systems in the countries where we operate, preparing them for the future incorporation of non-conventional renewable energy sources.
We are advancing in the construction of 34 projects in Latin America covering 5,400 kilometres of power lines, 65% of which will enable or reinforce the grid for the integration of these new sources. These projects include the direct connection of more than 900 MW of renewable generation in Colombia, which, depending on consumption, could supply close to 1 million homes.

How is the company leveraging emerging technologies such as AI, IoT and big-data analytics to improve its operations and services?
ISA has applied advanced analytics and artificial intelligence to improve business performance. Today we have a project with more than 160 solutions that are developed in our Digital Centre of Excellence. There we are working on initiatives such as tracking and monitoring the construction of transmission lines. This is done by capturing images with drones and processing them with artificial intelligence and by training in transmission-line maintenance activities through virtual reality.
Likewise, we are aware that one of the great challenges of electricity infrastructure projects is the social and environmental licensing for the construction of new lines. ISA has been working on smart valves and flexible AC transmission systems, technologies that allow us to maximise the use of the existing network, guaranteeing a safer and more efficient transmission network.

What opportunities has ISA’s regional expansion presented, and what position does the company want to establish in Latin America?
All the countries in which we operate are of relevance to our portfolio. In Colombia, we are present in around 70% of the departments, with more than 15,000 kilometres of energy infrastructure, a distance comparable to that between the northern and southern ends of the American continent.
In Brazil, through ISA CTEEP, we transport around 12% of the electricity produced in the country and approximately 95% of the energy consumed in the state of São Paulo. In Peru, we transport 73% of the country’s energy, maintaining our leadership in transmission with a presence in 21 provinces. In Chile, through our subsidiary ISA Interchile, we operate around 2,000 kilometres of lines, representing 13.4% of the transmission market, and are present in five regions.
This data confirms that ISA is a very relevant actor and a fundamental facilitator for the quality of life and development in the countries where we operate. Our networks are the backbone of Latin America. We are the largest transmitter of high-voltage energy, with close to 50,000 kilometres of circuits, which is equivalent to circling the planet 3.9 times.
Of course, having such a large presence in the continent, in a key sector for the transition to a clean economy, presents important challenges, including rethinking systems planning, incorporating flexible resources and new technologies, improving environmental licensing models and having a greater commitment from governments to achieve regional integration.
A key example regarding regional integration is the Colombia-Panama Electricity Interconnection project, which is essential for accelerating the energy transition in the region, as it will link the north and south of the continent, creating a clean energy channel. This project will furthermore enable the future exchange of energy between the two countries, facilitating access to new renewable sources, with the aim of boosting competitiveness and efficiency while contributing to the region’s economic and sustainable growth.

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