Five takeaways from ISA's US$28-33bn investment plan

Colombian energy and infrastructure player ISA will focus on power transmission, energy storage and distributed generation as part of its new US$28-33bn, 15-year business plan. 

While the company aims to strengthen its position in Colombia, Brazil, Chile, Peru and Bolivia, it is also considering expansion into other Latin American markets – including Central America – as well as the US.

In parallel, the subsidiary of state-run oil producer Ecopetrol announced it would exit the telecoms sector and review other non-core assets as it prioritizes the clean energy transition. 

Here are six key takeaways from the plan.

1. Transmission expansion

ISA will expand transmission capacity 1.5-fold by 2040, maintaining the segment as its core business. 

To this end, the Medellín-based firm intends to preserve its market share in Colombia, Brazil, Chile, Peru and Bolivia while possibly expanding into Central America and other South American nations.

Planned capex for the transmission sector is US$19-22bn. 

2. New businesses

ISA is pursuing energy storage and distributed generation opportunities in Colombia, Chile, Peru and the US. The company has set a target to develop 8GW of storage infrastructure over the next decade and a half. 

In addition, ISA is mulling investments in decentralized solutions such as distributed solar generation for large energy consumers. 

By doing this, the company will contribute to the clean energy transition while supporting grid stability. 

Capex for these new business lines is seen ranging from US$6.5bn to US$7.6bn over the period. 

3. Strategic growth in the roads segment

ISA will participate in new tenders for road concessions in Chile while investing in additional works to improve road conditions in the country. 

It views the roads segment as a means of helping finance its growing energy portfolio.

Proposed investment in the roads sector is US$2.9bn to US$5.5bn. 

4. New markets

Apart from citing storage opportunities in the United States, ISA did not mention specific countries for its expansion but said the new markets must meet risk-return balance criteria. 

Growth prospects will be assessed based on market attractiveness and alignment with ISA’s portfolio strategy, as well as the potential benefits of geographical diversification. 

Meanwhile, the company said it would exit the telecoms sector, without providing details of any divestment plans. 

5. Net zero, sustainability

ISA aims to reach 50% of its net-zero pathway by 2040. In addition, it set a target to double investments in social programs, including education and infrastructure initiatives. 

The company also underlined a commitment to biodiversity and improve the conditions of workers and contractors.

See details of the plan here.