Ecopetrol and AES Colombia sign an agreement to build the Jemeiwaa Ka'I wind cluster in La Guajira

Rhea-AI Summary

Ecopetrol has signed an Investment Framework Agreement with AES Colombia to acquire a 49% stake in the Jemeiwaa Ka'I wind cluster in La Guajira, Colombia. The project features:

• Total capacity of approximately 1,087 MW
• Location: Upper and middle Guajira, Uribia municipality
• 35 km transmission line included

Ecopetrol, Colombia's largest energy company, brings significant expertise to the project. The company:

• Employs over 19,000 people
• Controls 60% of Colombia's hydrocarbon production
• Leads in petrochemicals and gas distribution
• Owns 51.4% of ISA, expanding into power transmission

The deal remains subject to conditions and legal requirements. Upon completion, Ecopetrol will release additional information through appropriate channels.

Positive

• Strategic investment in renewable energy with 49% stake in 1,087 MW wind cluster project
• Geographic expansion in high-potential La Guajira region
• Diversification of energy portfolio beyond traditional oil & gas operations
• Partnership with established player AES Colombia strengthens project execution capability
• Vertical integration through 35 km transmission line ownership

Negative

• Significant capital expenditure required for wind project development
• Project completion subject to multiple conditions and legal requirements
• Execution risks in new renewable energy sector outside core business
• Potential regulatory hurdles in La Guajira region

Insights

Energy Industry Analyst

Ecopetrol's agreement with AES Colombia to build 49% of the Jemeiwaa Ka'I wind cluster represents a significant diversification move for Colombia's largest hydrocarbon producer. With an approximate capacity of 1,087 MW and accompanying 35 km transmission line, this is a substantial renewable energy project in La Guajira.

The investment aligns with Ecopetrol's broader portfolio evolution beyond its traditional operations, where it currently controls over 60% of Colombia's hydrocarbon production. Following its acquisition of 51.4% of ISA's shares, Ecopetrol has already established positions in energy transmission across several South American countries.

While financial terms remain undisclosed and the deal is subject to conditions precedent, the scale suggests material capital commitment. The conditional nature of the agreement indicates several regulatory and financial hurdles must still be cleared before implementation.

The location in La Guajira is noteworthy as this region offers among Colombia's strongest wind resources. For Ecopetrol, which has built its business primarily on fossil fuels, this wind project represents a complementary asset that potentially reduces portfolio volatility through revenue diversification while positioning the company in the growing renewable sector.

Infrastructure Investment Expert

The Jemeiwaa Ka'I wind cluster represents a substantial infrastructure commitment with its 1,087 MW capacity and 35 km transmission line. For context, a project of this scale would typically require investment in the hundreds of millions to low billions of dollars, though specific figures aren't disclosed in the announcement.

Ecopetrol's 49% ownership structure is strategically significant - it allows them meaningful participation without assuming full development and operational responsibilities, suggesting a balanced risk approach. The municipality of Uribia in La Guajira provides geographical advantages for wind generation, though infrastructure projects in this region have historically faced implementation challenges.

The conditional nature of this agreement - subject to "precedent conditions and legal requirements" - signals that regulatory approvals, financing arrangements, and possibly community agreements remain outstanding. These conditions create execution uncertainty despite the formal agreement.

For Ecopetrol, this investment extends their energy value chain beyond their traditional hydrocarbon focus and complements their existing energy transmission assets acquired through ISA. The development timeline and eventual operational date remain undisclosed, which limits assessment of near-term financial impact on Ecopetrol's performance. However, once operational, such assets typically provide stable, long-term cash flows with different risk profiles than extraction-based businesses.

BOGOTA, Colombia, April 14, 2025 /PRNewswire/ -- Ecopetrol signed an Investment Framework Agreement with AES Colombia & CIA SCA E.S.P. (AES Colombia) to build 49% of the Jemeiwaa Ka'I wind cluster located in La Guajira, subject to the fulfillment of condition precedents and other legal requirements.

Jemeiwaa Ka'I comprises a portfolio of wind projects located in the upper and middle Guajira, in the municipality of Uribia, with an approximate capacity of 1,087 MW, along with a 35 km transmission line.

Once the precedent conditions and legal requirements are met, Ecopetrol S.A. will publish the pertinent information in accordance with its respective legal regime, through this same medium and/or any other applicable channels

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector.

This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements. 

For more information, please contact:

Head of Capital Markets
Carolina Tovar Aragón
Email: investors@ecopetrol.com.co 

Head of Corporate Communications (Colombia)
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co 

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SOURCE Ecopetrol S.A.

FAQ

What is the size of Ecopetrol's (EC) Jemeiwaa Ka'I wind project in La Guajira?

The Jemeiwaa Ka'I wind cluster will have an approximate capacity of 1,087 MW and includes a 35 km transmission line in La Guajira, Colombia. Ecopetrol will own 49% of the project through its partnership with AES Colombia.

How will the AES Colombia wind partnership affect Ecopetrol's (EC) renewable energy portfolio?

The partnership will significantly expand Ecopetrol's renewable energy presence by adding 49% ownership of a 1,087 MW wind cluster, strengthening its position in Colombia's clean energy transition.

Where is Ecopetrol's (EC) new Jemeiwaa Ka'I wind project located?

The Jemeiwaa Ka'I wind cluster is located in the upper and middle Guajira region, specifically in the municipality of Uribia, Colombia.

What percentage of Colombia's hydrocarbon production does Ecopetrol (EC) control?

Ecopetrol is responsible for more than 60% of Colombia's hydrocarbon production and manages most of the country's transportation, logistics, and hydrocarbon refining systems.

What are Ecopetrol's (EC) international operations in 2025?

Ecopetrol operates internationally in strategic basins across the Americas, including the Permian basin and Gulf of Mexico in the US, Brazil, and Mexico, plus power transmission operations in Brazil, Chile, Peru, and Bolivia through ISA.