AES Completes Construction of 3.5 GW of Renewables in 2023

Rhea-AI Summary

AES Corporation (NYSE: AES) completed the construction of 3.5 GW of renewable projects in 2023, nearly doubling the capacity compared to 2022. This milestone represents a new record and a growth rate of nearly 100%. The portfolio of renewables now reaches 18.4 GW, with notable projects including solar, wind, and energy storage. The completion of these projects signifies a significant step towards sustainable energy infrastructure and economic benefits for the communities involved.

Energy Market Analyst

The completion of 3.5 GW of renewable energy projects by AES represents a significant scaling of their renewable portfolio, marking a strategic shift towards clean energy. The doubling of construction capacity in a single year is indicative of the accelerating transition in the energy sector, reflecting broader market trends towards sustainability. This expansion is likely to be viewed positively by investors who are increasingly factoring environmental, social and governance (ESG) criteria into their decision-making processes.

From a market perspective, the diversification of AES's energy sources could potentially hedge against volatility in fossil fuel markets and regulatory risks associated with carbon emissions. The long-term agreements, like the one with the University of Pennsylvania, provide stable revenue streams and improve the company's risk profile. Moreover, the company's growth in renewables could benefit from various federal and state incentives, which are designed to encourage renewable energy investment.

Environmental Sustainability Expert

The environmental impact of AES's expansion in renewables is substantial, particularly in terms of carbon footprint reduction. Projects such as Great Cove Solar and Oak Ridge Solar contribute to the decarbonization of the energy grid and support the carbon neutrality goals of institutions like the University of Pennsylvania. The integration of energy storage, as seen in the McFarland A Solar-plus-Storage project, is a critical advancement, enhancing grid reliability and allowing for more consistent use of solar energy.

Furthermore, the partnership with Penn's Environmental Innovations Initiative for a soil health management study at the Great Cove Solar project emphasizes AES's commitment to environmental stewardship. This research could yield valuable insights that benefit the broader renewable energy industry by identifying best practices that balance energy production with ecological preservation.

Financial Analyst

The financial implications of AES's large-scale renewables projects are multifaceted. The initial capital expenditure for these projects is significant; however, the long-term operational costs are typically lower than those for traditional fossil fuel plants. The use of renewable energy can lead to cost savings over time due to lower fuel costs and maintenance requirements. Additionally, the creation of jobs during the construction phase has immediate economic benefits for local communities.

Investors should consider the potential for increased competitiveness of AES in energy markets as renewable energy costs continue to decline. The company's forward-looking approach to building out its renewable capacity could position it favorably for future energy demand scenarios where clean energy dominates. However, investors must also be aware of the risks associated with project execution, technological changes and policy shifts that could affect the profitability of these renewable assets.

Construction Milestone Marks the Largest Renewables Capacity Addition by AES in a Single Year

ARLINGTON, Va., Jan. 18, 2024 /PRNewswire/ -- The AES Corporation (NYSE: AES) announced the completion of 3.5 GW of renewables projects in 2023, nearly doubling the capacity constructed compared to 2022.

"In 2023, AES completed the construction of 3.5 GW of new renewables. This construction milestone represents a new record and a growth rate of nearly 100% over 2022. Including these newly added projects, AES' portfolio of renewables now reaches 18.4 GW," said Andrés Gluski, AES President and Chief Executive Officer.

Of the 3.5 GW of projects that AES completed, 1.6 GW are solar, 1.3 GW are wind and 0.6 GW are energy storage. Examples of notable projects completed in 2023 include:

• Great Cove Solar is a 220 MW project comprised of two solar facilities in Franklin and Fulton Counties, Pennsylvania being commissioned in multiple phases. It is the largest solar project in the Commonwealth and the University of Pennsylvania will purchase all electricity produced at the sites. The project will generate enough energy to power 70% of the total electricity demand of Penn's academic campuses and the University of Pennsylvania Health System, helping to support the University's goal of achieving a 100% carbon neutral campus by 2042. The project will also host a research study onsite in partnership with Penn's Environmental Innovations Initiative, which could offer the industry insight on best practices for soil health management on operational solar projects.
• Chevelon Butte Wind is a 238 MW wind project, and Phase 1 of a 454 MW wind facility in Coconino and Navajo counties, Arizona. Once Phase 2 becomes operational this year, collectively it will be the state's largest wind farm. The project is sited on the Chevelon Butte Ranch, one of the oldest working cattle ranches in Arizona. The facility is compatible with existing livestock ranching and hunting land uses, enabling the landowner family and Arizona State Land Department to continue the more than century-long tradition of raising livestock and stewarding the land.
• McFarland A Solar-plus-Storage is a 200 MW solar and 100 MW energy storage project located in Yuma County, Arizona. As one of the largest solar-plus-storage projects in the state, this facility represents the next generation of sustainable energy infrastructure powering a more secure and reliable electric grid. The project has already created hundreds of jobs in the region during construction.
• Oak Ridge Solar is a 200 MW solar facility located in Morehouse Parish, Louisiana. Oak Ridge Solar is the largest operating solar project in the state and will provide low-cost electricity while reducing carbon emissions and generating economic benefits for the local Morehouse Parish community. This project not only represents a high-value economic investment in the region but also supports Louisiana solar energy growth.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, rates of return consistent with prior experience and the COVID-19 pandemic.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2022 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law.

Any Stockholder who desires a copy of the Company's 2022 Annual Report on Form 10-K filed March 1, 2023 with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company's website at www.aes.com.

Website Disclosure

AES uses its website, including its quarterly updates, as channels of distribution of Company information. The information AES posts through these channels may be deemed material. Accordingly, investors should monitor our website, in addition to following AES' press releases, quarterly SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about AES when you enroll your e-mail address by visiting the "Subscribe to Alerts" page of AES' Investors website. The contents of AES' website, including its quarterly updates, are not, however, incorporated by reference into this release.

Investor Relations: Susan Harcourt 703-682-1204, susan.harcourt@aes.com
Media Contact: Stephanie Cathcart 571-294-6824, stephanie.cathcart@aes.com

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SOURCE The AES Corporation

What is the capacity of renewables projects completed by AES in 2023?

AES completed the construction of 3.5 GW of renewables projects in 2023.

What is the total portfolio of renewables for AES after the completion of the projects in 2023?

The portfolio of renewables for AES now reaches 18.4 GW.

What are some notable projects completed by AES in 2023?

Notable projects completed in 2023 include Great Cove Solar, Chevelon Butte Wind, McFarland A Solar-plus-Storage, and Oak Ridge Solar.

What is the ticker symbol for AES Corporation?

The ticker symbol for AES Corporation is AES.