Juan Ricardo Ortega López, president of Grupo Energía Bogotá (GEB), talks to The Energy Year about the potential that renewable energy generation and transmission represents for the company and natural gas as a potential area for further investment. Grupo Energía Bogotá generates, transmits and distributes electricity and distributes natural gas.
What potential does renewable energy transmission and generation represent for Grupo Energía Bogotá?
Grupo Energía Bogotá sees opportunities in electricity transmission, and we have important investments in Peru (with ISA), Brazil, Guatemala and Colombia. Regarding the latter, we are a key lever in the development of the Caribbean region. We have identified great potential in both onshore and offshore wind energy, for example.
The profitability of wind development projects in regions such as La Guajira is very favourable given the rich wind conditions. The country’s net wind potential is almost 100 GW. To this end, we have built the Colectora transmission infrastructure in La Guajira, which is critical for connecting wind and solar projects in this region to the national grid.
We have also invested in green energy projects with Enel and have more than 1.5 GW of solar power generation in the departments of Cesar and Atlántico. We also see solar opportunities with Enel in Panama, and we strongly believe that solar generation in the region will have a more important role moving forward.
Solar is preferred in Colombia as the leading energy source for the country’s energy transition. In several areas of the country, there are very high radiation levels, and there is also land available. The favourable regulatory framework is another positive variable incentivising solar projects.
In general, we see great opportunities in solar and wind energy in Colombia, Brazil, Peru and Guatemala, and GEB wants to be a critical player in their development.
How important is natural gas as a potential area of further investment for Grupo Energía Bogotá, and what is its importance in Colombia’s future energy scene?
We remain convinced that gas is the critical hinge of the energy transition in Latin America. In Colombia the energy industry and energy-related processes contribute no more than 28-30% of total emissions. Among those emissions, transportation is the most polluting, accounting for 12.4%. Deforestation continues to be the largest source of CO2 emissions in this country today.
Natural gas can reduce emissions by 50%. Moreover, in a cost-efficient transition, gas will play a central role, as we have the resource and can extract it at relatively affordable prices.
However, there is a major challenge when it comes to the gas supply in Colombia. Gasfields are declining, and in the near future, we might have gas shortages. In this context, what the country is looking at now is how to build the infrastructure to bring in imported gas, either by regasification, via small regasification units, or through our infrastructure with Venezuela. That is not going to be immediate, but it is an option on the table for the near future.
The reality is that Colombia is not going to have abundant sources of gas to extract if we don’t invest in exploration. There is a great opportunity in smaller fields that can hold up to 100 mcf [2.83 mcm] per day. This is a huge opportunity under our radar.
Today our per-day consumption is more or less 900 mcf [25.47 mcm], from which 450 mcf [12.73 mcm] comes from the interior of the country. Interestingly there is not enough infrastructure to take the gas from major producing assets to the major points of consumption. Therefore, connecting smaller fields with a combined potential of around 100 mcf [2.83 mcm] per day to points of demand could be a strategic move for us.
Tell us about the Colectora project that Grupo Energía Bogotá is spearheading.
The Colectora project is the key to tapping the renewables potential in La Guajira. This project will connect 1.05 GW from seven different wind ventures and also solar ventures in this region to the SIN [National Interconnected System]. This project is a determining factor for the development of La Guajira region.
Our subsidiary Enlaza is advancing the construction of Colectora. The first section is Cuestecitas-La Loma, which will be finished by mid-2025. The other section is Cuestecitas-Colectora, which includes two parallel 500-kV transmission lines. In total the project spans 475 kilometres crossing 14 municipalities in the departments of La Guajira and César. Cuestecitas-La Loma is 247 kilometres, while Cuestecitas-Colectora is 228 kilometres.
The project also includes the construction of a 500-kV substation in Colectora, which will be added to the two 500-kV substations in Cuestecitas and La Loma. The project further involves approximately 500 towers. Once functioning, Colectora will connect, for example, projects from AES, Enel, EPM [Empresas Públicas de Medellín] and Isagen to the national grid.
In total, 235 prior consultations with ethnic communities were approved in this region. We have already started the process of compensation to communities, in addition to the rights of way to construct the lines. The total value of the compensation and the rights of way combined is USD 20 million.
The necessary investments in impact studies and licensing processes have also been economic burdens. The projected capex for the project is just under USD 200 million.
How important are the transmission projects you’re doing in collaboration with ISA in Peru?
In March 2024, we signed an unprecedented alliance with ISA to implement two projects in Peru that involve the construction of 1,054 kilometres of new transmission lines. This project will bring energy to more than 9 million citizens, contributing to development, decarbonisation and energy efficiency in the country.
These projects are, firstly, the 500-kV Huánuco-Tocache-Celendín-Trujillo line and associated substations that are transporting energy from the centre of the country to the north. The second project is the 500-kV Celendín-Piura line and corresponding substations, which will facilitate the exchange of energy with Ecuador when the electrical interconnection with the north of the country is built.
These new projects are expected to begin operations in 2029 and generate revenues of approximately USD 83.5 million. We have another 11 projects that ISA and GEB are implementing in Peru to leverage the development and progress of the country.
What regional goals and key markets do you cover via your power and gas business?
We aim to consolidate transmission projects with cutting-edge competence in community work and environmental issues. We innovate and develop sustainable projects that give opportunities to the communities where we are present. We want to make sure that is the legacy we leave not only in Colombia, but also in Guatemala, Peru, Brazil and the whole region.
Brazil is one of our key markets. There we will have more than 5,000 kilometres of lines, while in Peru we have around 18,000 kilometres of transmission network with ISA. We are currently looking at Chile, Ecuador and Mexico with interest as key markets for expansion.
As for our gas business, TGI [Transportadora de Gas Internacional] is very important for us. TGI has a market share of over 50% in Colombia. From an EBITDA point of view, Peru is our most important market, along with Colombia. Our gas company Cálidda in Peru is very successful. It reaches 1.7 million customers, covering the whole of Lima. Moreover, in Peru and Guatemala, there is still a large dependence on firewood and charcoal. For example, 50% of Guatemala’s primary energy is firewood. We want to reach people with gas infrastructure to give them a better life.
Tell us how GEB is enhancing internet connectivity in La Guajira through EnlazaNet.
Through our subsidiary Enlaza, we launched our brand-new EnlazaNet pilot programme, an innovative initiative that enables the provision of high-speed internet connections using power transmission lines. This project will enable connectivity to remote areas of the country through the power transmission system.
In the first stage of this pilot programme, EnlazaNet will reach 4,000 children and 60 teachers from 10 educational institutions in Riohacha, La Guajira. With it, we have become the first electric power transmission company to offer a connectivity solution based on the infrastructure of its lines. A second phase called EnlazaNet2 is on the way, which will bring connectivity to 15,000 inhabitants from Riohacha and Maicao in La Guajira.