EPM Outlines COP$4 Trillion Electric-Power Distribution Investments for 2020 to 2024

Medellin-based electric power giant EPM on June 11 unveiled a COP$4 trillion (US$1.06 billion) capital investment program for its power distribution subsidiaries in six Colombian departments (states).

The investments “seek to contribute to the improvement of service quality, minimizing the number of interruptions and their duration,” according to EPM.

“For this, infrastructure projects are being carried out with the aim of extending networks to expand coverage, modernize and expand substations to improve reliability, and acquisition of new technologies that allow optimizing the system, timely delivery of information and greater automation,” according to the company.

The investments will cover all its domestic power-distribution subsidiaries in Antioquia, Norte de Santander, Santander, Quindio, Caldas and Risaralda departments, including: CENS (Centrales Eléctricas del Norte de Santander), ESSA (Electrificadora de Santander), CHEC (Central Hidroeléctrica de Caldas), EDEQ (Empresa de Energía del Quindío) and EPM (Empresas Publicas de Medellin).

EPM group already invested COP$742 billion (US$197 million) in Colombia power infrastructure in 2019, the company noted. For 2020, projected investments total COP$1.3 trillion (US$355 million), while for the 2020-2024 term, investments will total COP$4 trillion (US$1.06 billion).

Beyond just infrastructure, investment areas also include “research and innovation projects aimed at the incorporation and adoption of new information technologies; measurement and intelligent networks; [and] multipurpose LED lighting,” according to the company.

Here are the investment totals by subsidiary:

CENS: This subsidiary has already invested COP$481 billion (US$127 million) for efficiency and reliability projects over the past four years – an all-time record, according to EPM.

As a result, “the ‘SAIDI’ indicator (which measures duration of service failures) has decreased by 35% between 2016 and 2019, and the SAIFI indicator (which measures the frequency of failures) has decreased by 16%, [both] achieving better-than-national long-term targets,” according to EPM.

Besides extending power service into more rural areas and low-income neighborhoods, CENS now offers payment plans “tailored to the needs of users and their ability to pay, such as ‘Rechargeable Energy’ and ‘Pay to Your Needs,’” according to EPM.

ESSA: This subsidiary launched a COP$770 billion (US$204 million) investment plan in 2016 “in order to increase coverage and improve the quality of energy service for its customers and users in Santander,” according to EPM.

“These resources have been key to illuminating the lives of 23,424 rural families who did not have the energy service in their homes,” according to EPM.

“Thus, a coverage of the energy service in the rural area of 96.4% and a total urban-rural coverage of 98.85% were achieved, making Santander one of the departments in Colombia with the greatest coverage of electric-energy service and consequently greater opportunities for development and well-being.

“Through expansion and improvement projects of networks and electrical substations, it was possible to improve by 40% the time that customers go without energy service (SAIDI indicator) and to reduce by 30% the number of interruptions in the energy service of users (SAIFI indicator),” the company added.

EDEQ: Since 2010, EDEQ has invested approximately COP$100 billion (US$26.5 million) in the Quindío electricity system, boosting service quality. “The frequency indicator (SAIFI) has improved by 65%; while the availability indicator (SAIDI) imrpvoed by 20%,” according to EPM.

“For the next five years, EDEQ will invest more than COP$90 billion [US$24 million] in projects including the [power dispatch] control center, expansion and replacement of networks and substations, and management of energy losses, all to achieve greater efficiencies and better quality,” according to EPM.

CHEC: So far in 2020, power-supply interruption frequencies and durations have been reduced substantially, “which shows the results of investments aimed at improving the quality of the energy service,” according to EPM.

“Through electrification plans and the expansion of infrastructure, coverage of 99.91% was achieved in the departments of Caldas and Risaralda,” the company added.

“During 2018 and 2019, CHEC infrastructure planning studies were carried out for the municipalities of Dosquebradas and Dorada, as well as the study of the expansion of the Regional Transmission System. As a result, 25 projects are being formulated today, which would come into operation in the next six years.”

For 2020, CHEC plans to invest COP$45 billion (US$12 million) and then another COP$244 billion (US$65 million) in the 2021-2024 period, according to the company.

EPM: The principal subsidiary of Grupo EPM “has as its fundamental purpose the provision of electric power service with universal coverage and the best possible quality” in Medellin and throughout Antioquia. Following that promise, at the end of 2019 EPM’s service coverage in urban areas was 100% and in rural areas 97.26%.

EPM offers pioneering payment solutions including “Prepaid Energy,” “Housing Enablement” and the “Pay for Your Needs” program, “all of which make it possible to access service and stay permanently connected” even for relatively low-income households.

For the period 2020-2024, EPM’s total investments in Medellin and Antioquia will be approximately COP$1.7 trillion [US$450 million], featuring “expansion projects and replacement of electrical infrastructure that will make it possible to connect more customers and modernize the infrastructure; our ‘safety project’ that will guarantee the continuity of service under safe conditions for both workers and contractors and for the community; the ‘quality project’ that aims to improve the quality of electricity service in all territories (SAIDI-SAIFI indicators), and the change of public lighting to more-efficient LED technology,” according to the company.