The aim of energy management is to optimize sources, uses, energy costs and emissions, in a reliable and sustainable manner.
To this end, Ecopetrol implements the following strategic initiatives:
- Energy efficiency program
- Optimization of the energy matrix according to economic and environmental merit (expansion of installed capacity by incorporating renewable sources, reuse of flare gas, contracting of dedicated generation assets)
- Improving the competitiveness of self-generation
- Optimization of electricity planning and use of synergies with Ecopetrol Group companies
- Participation in the wholesale market through direct energy sales through the subsidiary Ecopetrol Energía S.A.S. ESP, of the Ecopetrol Group Energy management takes into account the diversification of the Company’s energy matrix, and its aim is to achieve energy self-sufficiency through: the use of the operations infrastructure of the Ecopetrol Group’s companies, access to fuel sources and progressive incursion into unconventional renewable energy sources.
The foregoing aims towards generation in regions where these technologies are cost competitive in contrast to purchasing from the National Transmission System (STN for its Spanish acronym) and/or the costs of self-generation with fossil fuels.
During 2019 the Company reached the following milestones:
- The Castilla photovoltaic solar farm entered into operation, with 21 MW of installed capacity, which will prevent the emission of more than 154,000 tons of CO2, equivalent to the planting of 1,200,000 trees.
- Registration of 65 electrical borders that allow for the optimization of the purchase and sale of energy, with a monthly average of 154 GWh, through Ecopetrol Energía S.A.S. ESP.
- Allocation of 0.74 GWh/day in the Cargo por Confiabilidad auction with firm energy obligations for the Termo Jagüey and Termo EBR generation centers of Oleoducto de los Llanos (ODL) at a premium of USD $15.1/MW, which represents income in net present value (NPV) of $100 billion pesos for Grupo Ecopetrol during the 10 years of the contract.
- Awarding of 30 MW to Ecopetrol Energía within the framework of the unconventional renewable energy auction, which represents an average price of $95.65 for a 15-year period, starting January 2022.
- Adherence to the "Zero Routine Flaring" initiative, based on the results of the flare reduction program. This is expected to increase from 45 million cubic feet per day (mcfd) in 2017 to 9 mcfd in 2020.