Ecopetrol Energía, a subsidiary of Colombia’s largest oil company Ecopetrol, was established in March 2018 with a capital of 3,000 million pesos. The company was created to oversee energy commercialization, reflecting Ecopetrol’s strategic move towards diversifying its portfolio beyond oil and gas. The subsidiary aimed to leverage Colombia’s growing demand for electricity and energy solutions, particularly from renewable sources.

However, the energy market proved to be more challenging than expected. Ecopetrol Energía struggled to secure a foothold in the highly competitive industry dominated by well-established players. The energy landscape was evolving rapidly, with regulatory shifts, market volatility, and increased pressure to transition toward greener solutions. These factors made it difficult for new players to thrive, and Ecopetrol Energía faced increasing operational and financial constraints.

After six years of operations, Ecopetrol decided to liquidate the subsidiary in October 2024. The decision came as part of a broader restructuring within Ecopetrol, as the company sought to refocus on its core operations and streamline its investments. By shedding the subsidiary, Ecopetrol aimed to improve its financial health and optimize resources, focusing on its more profitable ventures within the oil and gas sectors, as well as selective investments in renewable energy projects.

The liquidation of Ecopetrol Energía marked a shift in Ecopetrol’s approach to energy diversification. The company’s CEO stated that while the closure of the subsidiary was a difficult decision, it was necessary to ensure long-term sustainability. Ecopetrol remains committed to exploring new opportunities in the renewable energy market but will do so through partnerships and collaborations with more experienced companies in the field, rather than operating independently.

Despite its closure, Ecopetrol Energía’s legacy highlights the complexities of transitioning from traditional energy sectors to renewable markets. It serves as a reminder of the challenges companies face when diversifying their portfolios, especially in an era of rapid technological and regulatory changes.