- The company met, ahead of schedule, the most important goals of the ISA2030 Strategy in financial matters and, at the operating level, grew its Energy and Roads Business Units.
- For the new strategic cycle, the emphasis will be on doubling ebitda, consolidating the core business and accelerating new energy businesses (energy solutions and storage). It also plans to enter new geographies, make a positive contribution to communities and nature, and grow selectively/strategically in the Roads Business Unit.
- By 2040, the company will invest between USD 28-33 billion across the continent.
ISA launched its ISA2040 Strategy “Energy that gives life to the transition”, with which it will consolidate its position as a leading energy company on the continent, with investments in other businesses. In this new strategic cycle, the focus is on maintaining the relevance of the transmission business and taking advantage of the opportunities of new energy businesses, which are derived from the energy transition, and which complement the core business.
What are the main goals for 2040?
- Consolidation of power transmission in Latin America
- Transmission will remain the core business with maximum reliability, affordability, and sustainability.
- Multiply by 1.5x the capacity of the existing transmission infrastructure.
- Maintain market share in current geographies (Colombia, Brazil, Chile, Peru, and Bolivia) and expand its presence in Central and South America.
- Leading regional integration.
- Invest between USD 19-22 billion.
- Focus on Latam.
- Deploy/accelerate new energy businesses.
- Strengthen storage (review opportunities in Colombia, Chile, Peru, and the U.S.).
- Enter new energy businesses as decentralized solutions e.g., solar self-generation parks for large energy consumers (review opportunities in Chile, Brazil, and Peru).
- Develop 8GW of storage infrastructure and new energy businesses.
- Achieve synergies with Ecopetrol Group (ISA as the main supplier of energy solutions such as storage and self-generation).
- Invest USD 6.5-7.6 billion.
- Focus on America.
- Selective/strategic growth of the Roads businesses
- Energy Financial Capability Enabling Business.
- Focused growth through the re-bidding of own and third-party concessions in Chile, as well as additional works to improve road conditions.
- Investing USD 2.9-3.5 billion.
- Entering new geographies
- No target geographies are set. We will venture into those that meet the criteria of attractiveness and maintain a risk-return balance of the portfolio.
- Doubling ebitda
- Multiply by more than 2X ebitda (reaching approximately COP 20 trillion by 2040).
- Actively manage the portfolio
- Disinvestment in Telecommunications.
- Evaluate all assets to allocate capital efficiently.
- Contributing positively to talent, communities, and nature
- Achieve 60% of the Net Zero pathway.
- Doubling the return on social investment to society.
- Protection of the lives of employees and contractors.
- Biodiversity protection with our Conexión Jaguar program.
How much and how will it be invested?
Over the next 15 years, between USD 28 – 33 billion will be invested profitably:
“A judicious review of the environment, opportunities and internal conditions led us to conclude that ISA’s corporate strategy was relevant, responded to business challenges and set a clear path for us to be leaders in the energy transition in the region. In this new strategic horizon, we maintain the main emphasis of the previous strategy, but we set more ambitious goals in terms of growth, energy-related businesses, and contribution to global agenda items, with a wide margin for adaptability. We are convinced that Strategy 2040 will put us in a position of greater leadership and relevance in our businesses and geographies.”, stated Jorge Andrés Carrillo, CEO of ISA.
For the configuration of ISA’s business portfolio to 2040, criteria of relevance and distinctive capabilities were applied, complemented with an analysis of the future evolution of the industry, the contribution to the energy transition, incursion into countries and businesses different from the current ones, always maintaining a balance between risk and profitability of the portfolio.
How did the ISA 2030 strategy close?
ISA’s 2030 Strategy was defined as a roadmap for its sustainable growth, to ratify its leadership in the region in the businesses it operates and to respond to global challenges in social and environmental terms.
After six years of successful execution, the company achieved the most important indicators of this strategic cycle ahead of schedule. Ebitda, the main indicator of the strategy, which measures the company’s operating performance and its capacity to leverage growth and cover its obligations, was achieved ahead of schedule, reaching an accumulated COP 9.7 trillion (113% compliance with the target). ISA was awarded new investments for USD 7,946 million in electricity and road infrastructure between 2019 and 2024, an advance of 76% with respect to the target defined for 2030. This result reflects effective financial management and a solid and profitable growth strategy.
In these five years, infrastructure projects were developed with new technologies to provide greater flexibility and resilience to the grid, such as the first large-scale energy storage system in Brazil, as well as connections to renewable energies worth USD 140 million.
In the social field, in the countries where ISA is present, investments were made in education and training, entrepreneurship and productivity, and access to infrastructure, among others, for more than USD 76 million. In the environmental field, 84% of the 11 million tCO2e emissions reductions that ISA proposed to contribute to reducing by 2030 were achieved, with the linkage of new Conexión Jaguar projects. In addition, carbon neutral certification (Scope 1 and 2) was again achieved for the operations of 36 companies in the 3 business units in 5 countries.