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Developmentand innovation
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Development and innovation
EPM wants to grow with people through innovation and operation efficiency to contribute to the development of sustainable and competitive territories. Therefore, it conceptualizes, incubates, and escalates options to develop new businesses, as well as identifies and transfers new technologies to strengthen current businesses while optimizing the existing processes.
It also has the services of technological forecasting and competitive intelligence for all businesses and dependencies. This work is carried out from the EPM Library and seeks to strengthen the innovation process.
Over the last few years, efforts and synergies have been articulated through a single work plan called Agenda de innovación (Innovation agenda). Based on workshops held throughout the business group on signs of the environment and understanding of strategic planning, innovation focal points per business were declared and prioritized in 2018. They were recognized as the topics that framed the group’s main innovation needs and opportunities. These are detailed in the following figure: E n
Nonconventional renewable energy (abbreviated ERNC
in Spanish)
Transmission and distribution
Water supply Wastewater
managementGas Solid waste
management
• Solar energy.• Wind energy.• Biomass.• Biogas. • Small hydarulic
power stations.• Geothermal
energy.• ERNC integration.• Hydraulic and
thermal power stations.
• Optimization and operational profitability
• Purchasability and digitization.
• Increase in service provision (growth and coverage).
• Environmental and social management.
• Sustainable management of water sources.
• Infrastructure optimization.
• Distributed solutions.
• Energy efficiency.• Water treatment
by-products.
• Integral solutions.• Biogas.• Vehicular natural
gas.• New gas
applications.
• Operational and infrastructure optimization of the waste collection service.
• Waste reclamation.
• Waste valorization.
• Efficient management of sanitary landfills.
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Main achievements
Goals Achievements Accomplishment
Programa Feria CT+i (ST+i Fair program), through the execution of Solar circuit and Innóvate EPM (Innovate yourself EPM) projects, and Science, technology and innovation fair.
Science, technology and innovation fair (ST+i Fair): it is aimed at elementary and secondary school students; it extended its coverage to 25 municipalities in Antioquia. 120 educational institutions were benefited; 53 of them in the rural sector. 40 out of 74 projects that reached the final phase of the program in November committed to solving challenges in the thematic lines defined by EPM. Innóvate EPM (Innovate yourself EPM): it was supported by EDEQ and CHEC. 205 university students from Medellín, Armenia, and Manizales participated with the submission of 100 projects.Circuito solar EPM (EPM solar circuit): 628 students participated. They were from 9th to 11th grades and from 15 municipalities in Antioquia. 60 teams reached the final. They consisted of 175 students from 43 educational institutions in 13 municipalities of Antioquia.
Total
Solution for the reclamation of biosolids: Conduct market research, potential market exploration, and definition of opportunities; define business model according to the defined strategy; create conceptual design of plant for fertilizer production; and estimate budget for implementation.
The commercial strategy and product development were defined. A market study was carried out in order to get to know appraisals related to customer identification, material demands, product potentials, market knowledge, sectors, and types of crops.In the area of education, academic/commercial events were held to contextualize crop owners regarding biosolids and the proposed solutions and products.
Total
Thermal coatings project: Achieve the technology assimilation in the power generation business assets, doing the required coating with the APS (air plasma spray) equipment and the robot.
In October 2018, the EPM infrastructure began to be upgraded for repairs, including new assimilated technologies (APS, HVOF, and GAP) and covering the plants’ repair needs. As a particular challenge, a centralized work is carried out on the repair of capital components of the Guadalupe III, Troneras, and Termosierra power plants.
Total
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Goals Achievements Accomplishment
Build in EDEQ two water purification plants in rural educational institutions.
Three educational institutions benefited, including the execution of the interinstitutional agreement with the Colombian Coffee Growers Federation and the municipalities of Calarcá, Filandia, and Quimbaya. The impact sectors of the project were characterized and a social diagnosis was obtained that identified rural settlements where this project was developed in three stages. These phases consisted of information about the project to the beneficiary community; training for the educational institutions benefiting from the program in topics such as energy, environment, efficient use of water and energy, and care and preservation of water; and, finally, support and monitoring of the project between EDEQ and the Coffee Growers Committee.
Total
Implement the electrical data model in the group’s infrastructure by the affiliate CHEC.
The full implementation of group projects led by EPM was not achieved, such as: occupational health and safety management system, EAM, FSM, ARIBA, Digital Electric Model (abbreviated MDE in Spanish), and Information Security Management System (ISMS).
Partial
Define the business model to sell CHEC’s laboratory services to external customers and offer the services.
The cost structure of CHEC laboratories was defined and surveyed in order to identify the current fixed costs and determine the price that would be offered to the customer. Based on this exercise and the market study conducted, the existing price for meter testing and calibration was redefined.
Total
Smart measurement: Integrate the readings into the information system for billing and portfolio management, and real-time display of consumption in the ESSA application.
In August, a 50% of progress on the reading captures to the biller machine is reported, as well as a development of the web service for the application.
Total
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Goals Achievements Accomplishment
Develop 14 critical maneuvers in the overhead and underground network maintenance management by the affiliate CHEC within the framework of the development of training software using 3D environments (interactive and immersive) applied to electricity distribution networks.
The construction of a 3D training room at CHEC facilities, the training of CHEC damage and repair work groups, and the development of 16 maneuvers were achieved.
Total
Challenges
Challenge Year in which it is achieved
Scope and coverage Achievement indicator
Progress made in management in 2018
Territory Business Company
Monitor, control
online, and diagnose
the telemetry pilot in
Sucre, in the small
town of Olaya.
2019Colombia –
AntioquiaWater
Empresas
Públicas de
Medellín - EPM
Programmed /
implemented
Telemetry and remote
management equipment
was installed along the
water supply system of
the municipality of Sucre.
This favored the online
monitoring of the main
variables of the water
supply system to timely
carry out actions to improve
the service in terms of
continuity, quantity, and
quality. It also enabled the
online identification of the
main causes that may affect
the service of the water
supply system. Similarly,
it was possible to achieve
operational efficiency and
optimization of maintenance,
including the regulation
of pressure remotely and
to know first hand how
to operate and maintain
this type of water supply
systems.
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Challenge Year in which it is achieved
Scope and coverage Achievement indicator
Progress made in management in 2018
Territory Business Company
Power generation
in water supply
networks pilot
project: Design
and define site and
equipment for power
generation in water
supply networks.
2019Colombia –
AntioquiaWater
Empresas
Públicas de
Medellín - EPM
Programmed /
implemented
The pilot project is being
implemented. Two sites
were selected for the
installation of the PAT
(pumps as turbines) systems
and previous hydraulic
measurements were made
to determine the generation
capacity and detailed
design of the PAT systems
for the two sites.
Hazardous waste
management:
Evaluate in EPM
the possibility of
implementing the
analysis of PCBs
(polychlorinated
biphenyls) for porous
solid surfaces.
2019Colombia –
Antioquia
Electrical
energy
Empresas
Públicas de
Medellín - EPM
Percentage
of progress in
milestones
Distribution
transformers
with vegetable
dielectric oil: Raise
awareness about
new technology and
adapt processes.
2019Colombia –
Antioquia
Electrical
energy
Empresas
Públicas de
Medellín - EPM
Percentage
of progress in
milestones
Continue with the
necessary technical
and feasibility
analyses to further
leverage the
profitability of the
optical fiber owned
by EDEQ and ensure
its optimal operation.
2019Colombia –
Quindío
All the
businesses
Empresa de
Energía del
Quindío -
EDEQ
Reach 100% of
achievement
Technical feasibility analysis
was carried out for four
economic proposals and
possible negotiations for
the profitable use of EDEQ
optical fiber.
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Challenge Year in which it is achieved
Scope and coverage Achievement indicator
Progress made in management in 2018
Territory Business CompanyImplement
the Innovation
Management
System (IMS) and
obtain the NTC 5801
certification.
2019Colombia –
Santander
All the
businesses
Electrificadora
de Santander
- ESSA
ESSA’s IMS
certification in
accordance
with the NTC
5801.
45% progress in the
implementation of the IMS:
diagnosis, training and
discussion, work plan to
close gaps, and innovation
policy and objectives.
Develop a strategy that allows the dissemination, introduction, and sale of induction stoves with local electrical appliance suppliers.
2019 GuatemalaElectrical energy
Empresa Eléctrica de
Guatemala - Eegsa
Stoves introduced to the market in
2019
Related stakeholders
Customers and usersCommunity OwnerGovernmentGrupo EPM people Suppliers and contractors Partners
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Actions
Innovation management Technological developmentsUrban solid waste management Non-conventional solutions for the water business
GRI standards disclosures and EPM indicators
EPM-19 Implementation of new businesses in development and innovation.
Scope and coverage
BusinessesWater supplySanitation Electrical energy Gas
TerritoryColombia - Antioquia Colombia - Caldas Colombia - Quindío Colombia - Santander Guatemala PanamaChile
CompaniesEmpresas Públicas de Medellín - EPMCentral Hidroeléctrica de Caldas - CHECElectrificadora de Santander - ESSAEmpresa de Energía del Quindío - EDEQEmpresa Eléctrica de Guatemala - EegsaElektra Noreste - ENSAAguas de Antofagasta - Adasa
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Technological developments
In order to optimize the infrastructure performance in the different operating processes and be at the forefront of technological advances, EPM develops research, development, and innovation projects aimed at the production of new materials, products, and devices, and at the establishment and improvement of new processes, systems, and services.
Through these developments, not only the capacities of operating staff are strengthened, but also the generation of new knowledge in the organization and in the members of research groups of the universities or entities involved. It is possible to obtain important inventions for the protection of intellectual property or to achieve a possible commercial operation and placing on the market, which constitutes an innovation.
To achieve the corporate goals and provide new solutions, EPM commits to the integration of technologies and participates in the development of some of them.
Management in 2018
Using advanced analytics, EPM developed three analytical models to improve service quality indicators in the transmission and distribution business:• Alerts via impact email on System Average Interruption Duration Index (SAIDI) and System Average
Interruption Frequency Index (SAIFI). • Visual and interactive analysis of the service quality.• Downstream failure prediction of local distribution system (LDS) reclosers.
EPM already has a primary treatment system and during 2018 achieved a 95% advance in the operation of the secondary treatment system for the leachate from La Pradera landfill, improving the conditions for dumping the leachate into the Medellín River. For this purpose, biological reactors and a high efficiency ultrafiltration system were used.
Advanced analytics has been applied through the development of solutions that improve service quality indicators in businesses. The automation of 10 processes was achieved through robots (RPA) that increase the efficiency (control, quality, attention capacity, and achievement) of the process and the productivity of the employees, reducing repetitive and standardized manual tasks. The technical-economic analysis of the remote management pilot for public lighting in the municipality of Medellín was carried out under a scenario of widespread use.
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At the same time, the affiliates of Grupo EPM made progress in the application of capabilities to achieve operational efficiencies in the occupational health and safety system, asset management systems EAM, FSM, ARIBA, and MDE, Information Security Management System (abbreviated ISMS in Spanish), and implementation of the Human Capital Management (HCM) solution.
Emvarias implemented a project to extend the service life of engine lubricating oils, with environmental benefits from less final disposal of filters and oils, as well as savings in test vehicles. These results are expected to be scaled throughout the fleet.
CHEC disseminated EPM’s knowledge of the IT architecture model.
EDEQ developed an optimal model associated with investments to mitigate the effect of vegetation in contact with the LDS and pruning plans.
Through the installation of monitoring cameras, ESSA seeks to automate some functions of the generation plant and bring through them the signals provided by sensors and meters to the administrative offices.
ENSA Panama is making progress in replacing sodium streetlights with LEDs, which will save 10% in the consumption of the public lighting system.
Eegsa in Guatemala strengthens its Metric laboratory services under ISO 17025 for the reduction of losses, while performing measurements to meters, energy standards and instrument transformers within international standards to ensure quality measurements to customers and users of its services.
Investments in technological development (million COP)
Concept / Indicator 2018EPM parent 966
Company Group 9,692
Affiliates 10,658 Source: Executive Vice Presidency of Strategy and Growth – Development and Innovation Management.
The chart shows a representative percentage of investments in technological developments by the affiliates. The biggest investment is made by ENSA Panama with its replacement project of streetlights with LED type.
GRI standards disclosures and EPM indicators
EPM-19 Implementation of new businesses in development and innovation.
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Scope and coverage
Businesses Water supply Sanitation Electrical energy
TerritoryColombia - AntioquiaColombia - CaldasColombia - QuindíoColombia - SantanderPanamaGuatemala
CompaniesEmpresas Públicas de Medellín - EPMEmpresas Varias de Medellín - EmvariasCentral Hidroeléctrica de Caldas - CHECEmpresa de Energía del Quindío - EDEQElectrificadora de Santander - ESSAElektra Noreste - ENSAEmpresa Eléctrica de Guatemala - Eegsa
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Innovation management
It is a discipline that seeks to promote a culture of repeatable and sustainable innovation within an organization. Innovation management initiatives seek efficiencies for current businesses and changes that significantly transform the business (Gartner, 2018).
Grupo EPM has followed an important path in this management. It incorporated the culture of innovation as a competence of all its employees and applied the innovation model described below, which starts from generating ideas, prioritizing, validating prototypes, and executing pilot projects, until reaching solutions, implemented improvements, or new products or services for customers and users.
Grupo EPM innovation management model
1. Innovation strategy 2. Innovation portfolio management
I. Strategic component
II. Implementation component
III. Enabling component
1. Portfolio planning:Innovation strategy
Process Organization People Technology Information
2. Portfolio development
Identification SelectionDiscover Incubate Accelerate
NeedsOpportunities Solutions
D I A
Furthermore, Grupo EPM recognizes the importance of maintaining continuous learning and having a network of allies to identify people, entrepreneurs, entities, and companies, in order to make alliances for collaborative work, make investments through the capital fund, and establish a win-win relationship to build the required solutions.
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Management in 2018
EPM achieved the conformation of an innovation agenda covering the entire group. As a result, an innovation portfolio was consolidated, with the active participation of employees from most of the national and international affiliates, who presented their needs and opportunities.
Work was done on the standardization of the language around innovation, as well as on the issuance of business guidelines and rules associated with the management of innovation within the scope of the group.
EPM implemented the following projects to promote innovation and scientific activity among children and young people: Science, technology and innovation fair (ST+i Fair), which benefited 1,210 students and 390 elementary and secondary school teachers from 120 educational institutions; 53 of which were from the rural sector. 40 of the submitted projects focused on solutions in the thematic lines defined by EPM. Innóvate EPM (Innovate yourself, EPM), held in Medellín, Armenia, and Manizales, gathered 205 university students, who submitted 100 projects. In addition, 3,120 students and 810 teachers from 9th to 11th grades participated in the EPM solar circuit competition, with 175 young finalists in 60 teams.
EPM carried out the 2018 Call for innovation initiatives, covering the entire group and implementation timelines. 160 draft proposals were received; 41 of them were selected as part of the innovation portfolio. In the Creando ando (Creating I am) call, in EPM parent company, 615 short-term implementation ideas were received; 153 were identified as potentially implementable. Moreover, the company participated in spaces such as the university - industry - government committee, as well as in different events and training workshops in some universities and institutions with the presentation of innovation topics, methodologies, and success and failure cases.
In its quest to leverage new businesses, EPM’s innovation and entrepreneurship fund acquired shares in the Chilean company Triciclos (recycling and clean points), in Kaptar (recycling and loyalty) and in Hybrico (Guatemala). Ventures EPM signed an agreement with Ruta N and CREAME to develop the first cycle of accelerated ventures.
EDEQ participated with two presentations in the International Congress on Maintenance and Asset Management. This Grupo EPM affiliate was recognized by the Colombian Association of Engineers (abbreviated ACIEM in Spanish) for its progress in implementing the Asset Management System.
CHEQ developed a training software using 3D environments (interactive and immersive), applied to electricity distribution networks, with results published in some journals. In addition, it received an award for this work during the 8th International Congress on works with voltage and safety in transmission and distribution.
ESSA achieved 45% progress in the implementation of the IMS (policy and objectives). It also executed the Convocatoria MEGA-Innovadores (Megainnovators call), while selecting and prioritizing innovative project ideas.
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From Panama, ENSA Innova received 143 proposals through the Héroes de Verdad web platform: 44 were selected, of which 32 are in incubation and 12 were implemented.
Adasa awarded five projects to be implemented in 2019 as a result of the fourth version of Antofaemprende (Antofagasta ventures), to strengthen a community of social entrepreneurs with the capacity to propose and provide solutions to the challenges in this region of Chile.
40,000
2018
30,000
20,000
10,000
0
1,063 3,677
14,404
2016
809
0
20,171
2017
845 719
32,822
Investments made (million COP)
Implemented resources in EPM.Resources implemented in affiliated co. Investments made through FCP.
Source: Executive Vice Presidency of Strategy and Growth – Development and Innovation Management.
The chart shows the investments by projects implemented in EPM and the group’s affiliates, as well as the investments made by the Innovation and Entrepreneurship Capital Fund. In 2018, the affiliates showed an increase in investment, demonstrating their firm commitment to innovation management.
GRI standards disclosures and EPM indicators
EPM-19 Implementation of new businesses in development and innovation.
Scope and coverage
Businesses Water supply Sanitation Electrical energy Gas
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TerritoryColombia - Antioquia Colombia - Caldas Colombia - Quindío Colombia - Risaralda Colombia - Santander Panama ChileGuatemala
CompaniesEmpresas Públicas de Medellín - EPMEmpresa de Energía del Quindío - EDEQCentral Hidroeléctrica de Caldas - CHECElectrificadora de Santander - ESSAEmpresa Eléctrica de Guatemala - EegsaElektra Noreste - ENSAAguas de Antofagasta - Adasa
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Between 2018 and 2022, as a result of the adjustment to the group’s strategic planning that was approved in September 2018, Vision 2025 initiatives were defined. Among them, priority was given to the generation of efficiencies and growth in the management of municipal solid waste. To this end, actions will be implemented to leverage this growth.
Municipal solid waste management
Solid waste in Medellín and its metropolitan area requires a planned management to design solutions according to the characteristics and conditions of our region, socially inclusive and sustainable from the health/environmental and economic point of view.
In this sense, Grupo EPM has proposed a strategic vision with several parameters. These include prioritizing the projects to be implemented in the different time horizons in order to achieve integral and efficient management (making the most of the by-products obtained in the process), providing solutions for the management of ordinary, special and hazardous (short term) solid waste, and taking the business model to a level that promote minimization at source and the reuse, recycling, and recovery of materials and energy from waste.
Management in 2018
EPM continues to enable solutions that optimize the process from the generation of waste at the source, continuing with the activities of sweeping and cleaning, reuse and recycling, to the efficient management of the sanitary landfill.
Progress was made in structuring the business to take advantage of the biosolids generated in wastewater treatment: production of a crop fertilizer that has already been technically tested with excellent results. Once the conclusions of the required (market, environmental, regulatory, financial, and economic) studies are available, which are described in the business case, it is expected that this initiative will be materialized in EPM or in one of its affiliates.
With regard to hazardous waste management, 95% progress was made in implementing the analysis of PCBs on impermeable solid surfaces to support the management of the PCB removal plant in the decontamination of equipment.
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In addition, there is a mineral dielectric oil regeneration plant that EPM has been operating to make environmentally appropriate use of these oils, the materials recovered, and the waste generated in this process. During this year, the company received 386 tons of equipment from energy distribution networks, which were diagnosed, PCB cleaning, 106 tons of oil regenerated and, in turn, 48 tons of oil were regenerated and delivered to appropriate facilities (General Warehouse) for reuse in internal processes. Likewise, as a contribution to the care for the environment, 251 tons of reclaimable metal scrap, free of PCBs and other materials, were adequately handled.
Emvarias invested COP 381 million in the installation of six underground systems in the Carrera Bolívar; large automatic compactors, and the installation of waste containers in the Ciudadela Nuevo Occidente. These investments are aimed at optimizing the management of solid municipal waste in Medellín, reducing odors, eliminating sources of pollution, improving health conditions, and further mechanizing the service. Furthermore, at the installed Puntos Naranja (Orange Points) 2,645 kg of waste of electrical and electronic equipment, 1,083 kg of batteries, 604 kg of streetlights, 553 kg of medicines, and 375 kg of cooking oil were collected. The company also constituted a project for the citizens of Medellín’s Comuna 14 on the delivery of reclaimable material. The program La ruta recicla (The recycling road) was recognized with the InnovaCiudad Award 2018, which each year recognizes initiatives that contribute to the quality of life of communities and the development of cities. This project is subscribed to the Smart City Business America Congress & Expo.
GRI standards disclosures and EPM indicators
EPM-19 Implementation of new businesses in development and innovation.
Scope and coverage
Businesses Sanitation
TerritoryColombia - Antioquia
CompaniesEmpresas Públicas de Medellín - EPMEmpresas Varias de Medellín - Emvarias
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EPM implemented the remote management project in rural water supply systems in the municipality of Olaya (in western Antioquia). Additionally, it began a pilot project to evaluate the implementation feasibility of the PAT technology and its compatibility with the water supply network. At the same time, it installed a water purification flower on an EPM site for the use of rainwater and continued with the project of overhead water supply systems in areas where it is not possible to enable the service using underground networks.
Non-conventional solutions for the water business
Water is the main resource EPM uses for its water and power generation businesses. Thus, through innovation, new non-traditional solutions are explored. These are related to other forms of water catchment for human consumption, use of new water sources, use of new structures and materials, and implementation of other practices for the removal of microorganisms or pollutants, among others. Therefore, the aim is to implement sustainable solutions with the use of the most appropriate technology, considering investment costs, operation, maintenance and conditions of the environment where it will be implemented.
Management in 2018
EPM continued with the pilot project for the construction of overhead water supply systems in the municipality of Turbo, in the Urabá region, department of Antioquia. The company built 2.5 km of network to carry the water to the Marine Infantry Battalion No. 16 and provide the water supply service to neighboring homes. Between 2017 and 2018, COP 827 million was invested. On the other hand, the company started a pilot project that evaluates PAT technology as a system to regulate pressure or dissipate excess energy from the flow in EPM’s water supply network; in this way, excess energy is used to generate electricity. In 2018, two sites were selected for the installation of the PAT systems and previous hydraulic measurements were made to determine the generation capacity and detailed design of the PAT systems for both sites.
The second pilot project was the installation of telemetry and remote management equipment along the water supply system in the small town of Sucre (municipality of Olaya), west of the department of Antioquia. Its purpose is to monitor online the main variables of the system, identify online the main causes that affect or may affect the service, and achieve operational efficiency and maintenance optimization, so that the affiliate company Aguas Regionales can use this knowledge and that the experience in other hard-to-reach water supply systems can be replicated in the future.
Finally, a decentralized solution for the purification of water from rainwater was installed on an EPM site. In 2018, monitoring of the quality of the outlet water was initiated and an investment of COP 90 million was made.
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Investment in non-conventional solutions for the water business
Concept / Indicator 2017 2018Overhead water supply system pilot project. 577 250
Pilot project for a decentralized solution for water purification from rainwater. 0 90
Telemetry pilot project of a regional water supply system, implementing the Sucre water supply system, operated by Aguas Regionales.
53 224
Pilot project for the evaluation of PAT technology as an alternative system to regulate the pressure in EPM’s water supply network and use its excess in electricity generation.
0 458
Total investment 630 1,022Source: Vice Presidency of Water and Sanitation / Development and Innovation Management.
GRI standards disclosures and EPM indicators
EPM-19 Implementation of new businesses in development and innovation.
Scope and coverage
Businesses Water supply Sanitation
TerritoryColombia – Antioquia
CompaniesEmpresas Públicas de Medellín - EPMAguas Regionales EPM
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SustainabilityReport2018
