ISAGEN , one of the winners of Colombia's long-term energy auction, is moving forward with a renewable pipeline exceeding 1.4 GW , comprised of approximately 820 MW of solar projects nearing completion and another 600 MW under internal development. The company aims to add 1 GW of new capacity by 2027 and an additional 3 GW by 2035 .
This was stated by Esteban Arroyave, leader of the ISAGEN projects team , within the framework of the Future Energy Summit (FES) Colombia 2026 , where he details the progress of the renewable portfolio and the conditions he considers necessary to accelerate investments in the Colombian electricity market.
“The 820 MW are in the process of being finalized; they are solar projects at different stages, some operational, others ready to build. The idea is to begin construction between the end of this year and the beginning of next year. The goal is to have 1 GW of new capacity by 2027,” Arroyave stated.
This portfolio is complemented by another 600 MW of internally developed projects , which could reach the Ready to Build stage towards the end of 2027 or the beginning of 2028. The growth strategy combines in-house development with the acquisition of assets, under the criterion of incorporating exclusively renewable generation projects.
Its investment plan includes $1 billion . To partially finance this expansion, the company sold 500 MW of mature hydroelectric and solar assets , through a capital rotation strategy that would allow it to free up resources and allocate them to new generation initiatives.
“It’s part of what we’re looking at: how we identify opportunities in the market as long as they are 100% renewable, taking advantage of the opportunities and building and growing through acquisitions,” the executive explains.
The company is also analyzing the possibility of incorporating up to 4 GWh of batteries into its solar projects , although it acknowledges that the economic viability of these investments will depend on the evolution of the Colombian electricity market and the regulatory mechanisms that allow for remuneration of storage services.
“If we were to hybridize all those projects, we could reach 4 GWh. The desire is there, and if we can, we will,” the executive stated.
ISAGEN analyzes its bid in the Colombia auction
It is worth remembering that, in parallel to its expansion strategy, the company is moving forward with Bosques Solares de los Llanos 8 , the project awarded in Colombia's long-term auction held in July , which includes 170 MW of installed solar capacity in alternating current and the integration of energy storage.
The planned configuration includes approximately 125 MWh of batteries in the first phase , while the larger-scale design would allow reaching 480 MWh.
The award was made in a tender that differentiated between an exclusively solar supply curve, corresponding to Product 2, and another flat curve with storage until 10 p.m., included in Product 3.
However, the executive acknowledges that the financial structuring of the offers proved complex , due to the scarcity of remuneration mechanisms complementary to the energy purchase and sale contracts.
“It was difficult and challenging because there really aren’t that many sources of income beyond the PPA that was signed with the buyers,” he warned.
According to Arroyave, the bidding process also revealed a higher volume of demand than the energy ultimately awarded, although differences between the price expectations of buyers and sellers limited the contracts.
Added to this is the difficulty of making batteries profitable solely through price arbitrage. “In a country where we pay practically the same price per kilowatt at 7 p.m. as at midday, it’s difficult,” he pointed out.
Despite these challenges, ISAGEN is in the process of finalizing the acquisition of Bosques Solares de los Llanos 8 and plans to begin construction during 2026.
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Regarding the other segments of the tender, Arroyave explains that the company did not participate in Product 1, corresponding to a flat supply curve during the 24 hours, although it did plan to submit bids for Product 4.
“We did intend to participate in Product 4; however, we did very well in the other products,” he concluded.
What conditions does the Colombian market need to attract new investments?
Beyond the auction results, ISAGEN identifies regulatory stability and investor confidence as two key factors for accelerating the development of new generation capacity in Colombia , especially given the supply needs projected for the coming years.
“When we invest in projects, we are thinking about 30 to 35 years, and so much change and uncertainty regarding the change of rules really scares away different investors,” Arroyave warns.
The executive believes that the country needs to expand its energy supply and create conditions that encourage both the arrival of new developers and the continuation of investments by existing players .
In this context, the importance of advancing specific regulations for energy storage is highlighted. While Colombia allows the connection of batteries to the electrical grid, challenges remain in establishing remuneration mechanisms that facilitate their commercial deployment.
“There is a lack of arbitration capabilities, issues related to power charges, and auxiliary services; that is where we still need to fine-tune things a bit,” he pointed out.
The need for these tools becomes more relevant given the prospects for incorporating new generations of technology. According to Arroyave, solar technology will account for a large portion of the projects that could become operational in the coming years , while other alternatives face longer development timelines.
In particular, the executive points out that, although there are relevant initiatives such as Hidroituango and the planned developments in La Guajira, the system also needs firm capacity to respond to periods of peak demand.
Regarding expansion prospects, Arroyave estimates that Colombia could incorporate approximately 3.5 GW of new solar capacity by 2030 .
“I saw the goal set by UPME of 4.5 or 4.6 GW; if you look at history, only 21 to 23% of that has been implemented, but I am optimistic and I believe that about 3.5 GW of new solar power can be added by 2030,” he said.
Regarding other technologies, the ISAGEN representative notes difficulties in incorporating new thermal generation due to equipment delivery times, which can take at least five years for the acquisition of a gas turbine . He also acknowledges the challenges facing wind power development.
The expansion of electricity transmission infrastructure is another factor driving the sector's growth. The executive warns that the construction of substations and lines can take at least four to five years , with some projects extending to ten or fifteen years.
Consequently, it raises the need to anticipate investments in transmission and distribution, even given the current availability of connection points for new projects.
Finally, Arroyave refrains from quantifying the storage capacity that could be incorporated into the Colombian system by 2030, due to uncertainty surrounding economic and regulatory conditions. However, he believes that a greater share of batteries will be necessary to complement solar growth .
“In terms of storage, it’s a crystal ball because the conditions aren’t really right today, from the perspective we’ve discussed. But if that gets fixed, which is what the country needs, and I don’t see any other solution by 2030, then a lot of gigabytes of storage can be added,” he concluded.