AES Andes leads the energy transition thanks to its commitment to renewables and decarbonization.

February 26, 2024

2023 was a year of remarkable progress in the implementation of the Greentegra strategy for AES Andes. Not only did the company achieve 53% of its installed capacity coming from renewable energy sources, but it also demonstrated a firm commitment to accelerate its decarbonization process.

Once again demonstrating its commitment to the country's decarbonization process and to the fight against climate change, AES Andes completed the early retirement of Unit 2 of the Ventanas thermoelectric power plant, two years ahead of its original commitment. It also applied for the early and definitive retirement of the two units of the Norgener power plant, located in Tocopilla, on March 31, 2024, which was approved by the competent authorities in February 2024.

The rapid and sustained growth of renewable energy was essential to progress in this process, which resulted in the addition of 601 MW to the company's portfolio in 2023. Campo Lindo (wind farm in the Biobío region), Bolero Solar and Andes Solar IIB (with the largest battery bank in Latin America), both located in the Antofagasta region, and Virtual Reservoir II (in the Metropolitan region) were added to AES Andes' assets in Chile.

AES Andes General Manager Javier Dib said, "Hand in hand with our partners, customers, communities and employees, we have been able to further expand our portfolio of renewable energy projects and fulfill our commitment to the successful decarbonization process in Chile. The company is proud to lead the process of changing the country's energy matrix and together accelerate the future of energy".

The company continued to make progress on its investment commitments, which were financed in a balanced manner.

AES Andes expanded its relationship with Global Infrastructure Partners (GIP) by including them as a partner in a second portfolio of 693 MW of renewable projects in Chile. As a sign of support and confidence in the company, GIP will acquire 49% of this second portfolio, valued at $441 million, and will prepay $333 million in December 2023.

In 2023, AES Andes recorded an EBITDA of US$686 million, 16% lower than in 2022.

The Colombian operation recorded a positive variance due to the increase in sales volumes to the spot market, particularly in the third quarter of the year. However, there was a decrease in EBITDA, mainly due to the process of transition to renewable energy that the company is carrying out in Chile. This situation is due to the fact that not all new renewable contracts have started to deliver, while some coal-indexed contracts expired during the period.

Green hydrogen

AES Andes is advancing the preparation of baselines and technical and environmental studies for the implementation of a large green hydrogen production project in Chile together with a major international hydrogen producer. It is also evaluating the best financial, legal and corporate structure options to carry out this process.

Recognition for excellent work environment

AES Andes was recognized by Great Place To Work as one of the best places to work in Chile, Argentina and Colombia.

AES Andes continues to lead the transformation to a more sustainable energy matrix, accelerating the future of energy in the region.

About AES ANDES

AES Andes generates and sells power in Chile, Colombia and Argentina. The company operates 5,524 MW in South America and has a large portfolio of renewable energy projects under development. The company is one of the region's leading power generation companies, with a diversified portfolio that includes hydro, wind, solar, energy storage, biomass, natural gas and coal.

In Chile, AES Andes and its subsidiaries own and operate 3,752 MW, including 1,921 MW of thermoelectric, 771 MW of hydroelectric, 370 MW of wind, 442 MW of solar photovoltaic, 13 MW of biomass and 236 MW of battery energy storage, as well as desalination plants and transmission lines.