More than half AES Andes’ portafolio is renewable

August 3, 2023

• In 2023 so far, the Company has already added more than 500 MW of renewable energy to its operating portfolio.
• The company began operations of the largest energy storage system in Latin America.

Santiago - AES Andes continued to strongly execute its transformational strategy Greentegra during the first half of 2023, with the incorporation of new renewable power plants to its portfolio and the entry into environmental processing of projects with a strong innovative seal.

Thus, in April, the Company’s put into commercial operation (COD) the Campo Lindo Wind Farm, while last week it did the same with Andes Solar IIb - in the Atacama Desert, which has the largest battery energy storage system in Latin America.

With this, it added 504 MW of renewable energy to its portfolio in operation so far this year, also considering the acquisition of Bolero Solar Park.

With this, AES Andes achieved an important milestone, reaching more than half of its operating capacity based on renewable energy, free of CO2 emissions.

Javier Dib, CEO of AES Andes, stated that "we are very proud that our ambitious transformational strategy Greentegra is today a reality, which is reflected in the realization of 100% renewable operations that represent more than half of the Company's installed capacity, with efficient, safe and sustainable solutions. We still have a long way to go and that is why we will continue to grow with new projects of this type, which will be added to our renewable portfolio very soon".

In financial terms, the Company recorded an EBITDA of US$ 283 million in the first half of 2023, US$ 107 million lower than the US$ 390 million of the same period of the previous year.

In Chile, the negative variation of US$ 98.4 million is mainly explained by a lower coal cost associated with the Company's coal inventory policy in 2022, in an extraordinary context of rising fuel prices in the electricity system, while in 2023 there was a significant increase in coal consumption costs and in the volumes of energy purchases and a decrease in the volumes of sales of regulated contracts.

In Argentina, the negative variation is mainly explained by the higher basis of comparison with the first half of last year due to the extraordinary income from the recovery of recognized insurance. Without this effect, the positive variation reaches US$ 3.6 million, thanks to a higher sales volume of contracts in the Energy Plus market and an increase in capacity revenues in the Base Energy regime due to higher availability and price in 2023.

Meanwhile, in Colombia, the positive variation is explained by higher prices and sales volumes in the spot market, generating a higher margin. This was partially offset by a lower margin on contracts, as a result of the increase in energy purchase prices for its supply and the effects of the devaluation of the Colombian peso.

During the first six months of the year, the Company recorded a net loss of US$ 199.7 million, which is mainly explained by the negative effects on the recognition of impairment of property, plant and equipment for US$ 271 million, associated with the definitive disconnection of the Norgener thermoelectric plant from the National Electric System on December 31, 2025, and a lower gross profit.

 

New projects in operation

The Company continues to advance its transformational Greentegra strategy and is investing US$3 billion between 2023 and 2027 in solar, wind and battery projects to add more than 3.2GW of renewable capacity to its portfolio.

The most recent milestone in its strategy was reached last week with the entry into commercial operation of Andes Solar IIb, with an installed capacity of 180 MW, which joins the Andes hub in the Atacama Desert, Antofagasta Region. The new photovoltaic power plant also has a battery- energy storage system for 112 MW for 5 hours, which allows storing solar energy during the day and injecting it into the system during the night at hours of peak demand, being one of the most innovative and necessary solutions to alleviate the system's transmission congestion.

During June, AES Andes acquired the Bolero Solar Park, located in the commune of Sierra Gorda, also in the Atacama Desert. It is a photovoltaic plant with an installed capacity of 146 MW in operation, located about 100 kilometers from other AES Andes solar power plants.

In addition, at the beginning of May, the Company received authorization for the commercial operation of the Campo Lindo wind farm, with 66 MW, located in Los Ángeles, Biobío Region, which joins Mesamávida and Los Olmos wind farms, of AES Andes in the south of Chile.

 

Progress in decarbonization

In a new advance in the country's decarbonization process, at the end of May the Company requested the early retirement of its 276MW Norgener Thermoelectric Power Plant, located in Tocopilla, Antofagasta Region.

These are the Norgener 1 and 2 units - each of 138 MW -, which will cease coal-fired generation operations as of December 31, 2025.

With this announcement, the Company has already committed to decarbonize 1,693 MW of its portfolio by the end of 2025.

 

Entry of new projects

During February, AES Andes entered the environmental evaluation of the Pampas hybrid project, located in Taltal, Antofagasta Region. The initiative incorporates an installed capacity of up to 392 MW, with a battery storage system for up to 624 MW for five hours.

The wind farm will have an installed capacity of up to 140 MW, while the photovoltaic plant will have two zones, totaling up to 252 MW.

 

In March, the Company also submitted the Cristales solar project, also located in the Antofagasta Region, for processing. The future photovoltaic plant includes a battery storage system for up to 542 MW for five hours, together with an installed capacity of up to 379 MW photovoltaic.

This is in addition to the entry of the Alba project into the environmental process during the last quarter of last year. This is a pioneering initiative worldwide that seeks to be an alternative for the conversion of thermoelectric power plants through the use of molten solar salts (Molten Salt).

 

Diversity and gender equity

The Company continued to make decisive progress in the area of diversity and gender equity.  In June it announced its entry into the Pride Connection network of companies, an initiative promoted by Fundación Iguales to promote inclusive workplaces for sexual diversity and generate links to attract LGTBI+ talent.

In May, the Company officially received the Iguala Conciliation Seal from the Ministry of Women, through the National Service for Women and Gender Equality (SernamEG).

This is a certification that the agency gives to organizations that implement integrated management systems for gender equality and reconciliation of family, work and personal life, as part of Chilean Standard 3262, under which AES Andes was recertified at the end of last year, being the first company in the energy sector to achieve this standard.

 

Great place to work

At the end of March, the Company was recognized in Chile as one of the six best companies to work for, according to the Great Place To Work 2022 ranking in the category of up to 1,000 employees.

The Company achieved an important advance of four places, significantly surpassing the tenth position of 2021. This is reflected in the care for people, work in diversity and inclusion, and in line with the first value such as putting safety first and other initiatives such as the development of the hybrid work mode.