AES Andes requests the early and definitive retirement of Ventanas Power Plant Unit 2

August 24, 2023

Reaffirming its commitment to the country's energy matrix decarbonization process and in line with its Greentegra transformational strategy, the board of directors of AES Andes has approved the early retirement of Unit 2 of the Ventanas Power Plant.

The company requested that the National Energy Commission (CNE) waive the 24-month notice period for the retirement, disconnection, and cessation of operations of Ventanas Power Plant Unit 2, effective December 31, 2023, thereby nullifying the request for transition to Strategic Reserve Status (ERE) for this unit, which was made in 2020.

The CEO of AES Andes, Javier Dib, stated that "the decision adopted by the company's board of directors honors the commitment we made in Chile to retire our coal-fired units as the electrical system permits. For all these years, Ventanas Power Plant Unit 2 has been a fundamental pillar for the electrical security of the Valparaíso region." He also highlighted "the dedication of our employees to continue driving the renewable transition and the trust placed in the company to achieve these advances."

Dib added that "our Greentegra transformational strategy has progressed in accordance with what the company defined and the commitment we have to Chile: not only are we retiring our coal operations, but by 2027, we will have added more than 3.8 GW of renewable capacity to our portfolio in the country."

Meanwhile, the Minister of Energy, Diego Pardow, indicated that "AES was among the companies that joined the 2019 decarbonization agreement, a State policy that we are now going to complement through the Decarbonization Plan that we have launched as a government."

Pardow added that "in that sense, we value AES's impulse to contribute to this goal, understanding that this request must first be evaluated by the National Energy Commission and the National Electric Coordinator within the scope of their competencies."

Ventanas Power Plant Unit 2 has a gross capacity of 208 MW. With its exit and the previous retirement of Unit 1, more than 2.5 million tons of CO2 will be avoided, which is equivalent to taking more than one million vehicles off the country's streets.

AES Andes has provided concrete evidence of its commitment to the decarbonization process being carried out by the country and to the goal of working to combat climate change. The company and its subsidiaries have announced concrete plans to retire 82% of the coal-fired capacity in their portfolio since launching their Greentegra strategy in 2018, in line with The AES Corporation's intention to exit coal by 2025.

The company remains committed to its purpose of accelerating the future of energy together and advancing its transformation through the retirement of its coal units and the construction of new renewable projects, including storage technologies. AES Andes continues to work alongside its employees, partners, clients, and communities to advance rapidly in this process, with an investment of more than 3 billion dollars in new renewable energy projects.

 About AES Andes

AES Andes generates and sells energy in Chile, Colombia, and Argentina. The company operates 5,636 MW in South America and has a broad portfolio of renewable energy projects under development. The company is one of the main generators in the region, with a diversified portfolio that includes hydroelectric, wind, solar, energy storage, biomass, gas, and coal plants.

In Chile, AES Andes has a portfolio of 3,864 MW, consisting of 2,129 MW of thermoelectric, 771 MW of hydroelectric, 348 MW of wind, 429 MW of solar photovoltaic, and 13 MW of biomass, in addition to 174 MW of energy storage batteries, seawater desalination plants, and transmission lines.