May 22, 2025

BCI believes renewable energy represents a powerful opportunity to achieve strong long-term returns while aligning with our clients’ investment objectives and sustainability goals. In 2016, BCI Infrastructure and Renewable Resources (I&RR) invested in Isagen, a leader in renewable energy generation in Colombia. This investment represented an opportunity to acquire critical infrastructure assets with significant potential for growth to meet Colombia’s rising electricity demand.

Isagen holds a prominent position within Colombia’s energy sector as the third-largest electricity generator by market share and a pioneer in renewable energy. Its power generation portfolio has a capacity of more than 3.1 gigawatts across 27 power plants (15 hydroelectric, 10 solar parks, and two wind farms), meeting more than 18 per cent of Colombia’s national energy demand with 100 per cent of production derived from clean and sustainable sources. Powered by a workforce of approximately 600 direct employees and nearly 800 contractors, the company operates both conventional dam-based hydroelectric plants and run-of-river systems, while its recent diversification into wind and solar has further bolstered its renewable portfolio.

Colombia’s solid economic growth, increasing electricity demand, and access to premier solar, wind, and hydro resources make it an attractive market for renewable energy investments. In 2016, BCI became a significant minority equity investor, as part of a consortium led by Brookfield Asset Management. This marked our first direct infrastructure investment in Colombia and reflects BCI’s forward-looking approach to aligning financial returns with environmental responsibility.

One of the key drivers behind our investment was the stability of Isagen’s cash flows. The company’s diversified customer base spans electricity distributors and industrial clients in sectors such as metals, mining, manufacturing, and agribusiness. By selling over 70 per cent of its electricity through inflation-linked contracts averaging seven years in duration, Isagen mitigates risks associated with unpredictable rainfall patterns that can affect hydroelectric generation. This thoughtful approach to long-term contracts underscores the resilience of its business model.

Sustainability in Practice

Sustainability is deeply embedded in Isagen’s operations, with 100 per cent of its energy production coming from renewable sources. Isagen’s commitment to sustainability was evident in its decision to sell its only thermal power plant in 2022, in order to focus exclusively on renewable energy generation. The company also actively measures and offsets its carbon footprint while promoting efficient water and energy use among customers. Additionally, Isagen’s Integral Energy Management Program helps industrial clients optimize their energy consumption, reducing greenhouse gas emissions by over 10,000 tons annually.

Isagen’s environmental stewardship extends beyond clean energy production. The company integrates environmental considerations into all operational decisions – implementing programs for water governance, vegetation cover management, biodiversity conservation, and sustainable land use around its facilities. Additionally, Isagen fosters strong relationships with local communities through social development projects that drive shared value and economic growth.

Through its strong ESG ambitions and focus on renewable innovation, Isagen exemplifies how utilities can balance profitability with environmental stewardship. These practices continue to make the company well-suited to BCI’s I&RR portfolio, as we believe companies with robust ESG practices are better positioned to generate long-term value for investors.