The AES Corporation (AES) operates as a global energy company.
The company’s diverse workforce is committed to continuous innovation and operational excellence, while partnering with its customers on their strategic energy transitions and continuing to meet their energy needs.
Strategy
AES is the next-generation energy company with over four decades of experience helping the world transition to clean, renewable energy.
The focus of the company’s strategy is to partner with large corporations...
The AES Corporation (AES) operates as a global energy company.
The company’s diverse workforce is committed to continuous innovation and operational excellence, while partnering with its customers on their strategic energy transitions and continuing to meet their energy needs.
Strategy
AES is the next-generation energy company with over four decades of experience helping the world transition to clean, renewable energy.
The focus of the company’s strategy is to partner with large corporations that are transitioning to carbon-free sources of electricity. The company is very well-positioned as a leading provider of renewable energy to data center companies, particularly in the U.S., and to large mining companies outside the U.S. These customers want to work with AES due to the company’s track record of providing customized solutions that best serve their specific needs and delivering its projects on time and on budget. Projections for electricity demand growth from data centers in the U.S. continue to increase exponentially, and this demand is expected to grow to up to 90 GW by 2030, representing an increase of approximately 60 GW.
In 2024, the company signed long-term contracts for 4.4 GW of renewables, bringing its backlog of projects — those with signed contracts, but which are not yet in operation — to 11.9 GW. The company has been consistently rated by Bloomberg New Energy Finance as one of the top two largest sellers globally of renewable power to corporate customers.
The company is also seeing additional investment opportunities from data center growth in its utility service areas, above and beyond existing rate base projections. The company’s utilities have many natural advantages that are attractive to large technology companies, such as proximity to fiber networks and the presence of ample land and water. The company has worked to proactively identify sites that are well-positioned to support new data centers, capitalizing on its deep relationships with technology companies.
Generation
The company owns and/or operates a generation portfolio of 32,109 MW, including generation from its integrated utility, AES Indiana. The company’s generation fleet is diversified by technologies and fuel type.
Performance drivers of the company’s generation businesses include types of electricity sales agreements, plant reliability and flexibility, availability of generation capacity to meet contracted sales, fuel costs, seasonality, weather variations, economic activity, fixed-cost management, and competition.
Contract Sales
Most of the company’s generation businesses sell electricity and associated generation attributes under medium- or long-term contracts (‘PPAs’) in either regulated or competitive markets (‘contract sales’) or under short-term agreements in competitive markets (‘short-term sales’). The company’s medium-term contract sales have terms of two to five years, while its long-term contracts have terms of more than five years.
Short-Term Sales
The company’s generation businesses also sell power and ancillary services under short-term contracts with average terms of less than two years, including spot sales, directly in the short-term market or at regulated prices. The short-term markets are typically administered by a system operator to coordinate dispatch. Short-term markets generally operate on merit order dispatch, where the least expensive generation facilities, based upon variable cost or bid price, are dispatched first and the most expensive facilities are dispatched last. Across the company’s portfolio, it provides a wide array of ancillary services, including voltage support, frequency regulation and spinning reserves.
Many of the short-term markets in which the operates include regulated capacity markets. These capacity markets are intended to provide additional revenue based upon availability without reliance on the energy margin from the merit order dispatch. The company’s generating facilities selling in the short-term markets typically receive capacity payments based on their availability in the market.
Plant Reliability and Flexibility
The company’s contract and short-term sales provide incentives to its generation plants to optimally manage availability, operating efficiency and flexibility. Capacity payments under contract sales are frequently tied to meeting minimum standards. In short-term sales and in certain contract sales, the company’s plants must be reliable and flexible to capture peak market prices and to maximize market-based revenues. In addition, the company’s flexibility allows it to capture ancillary service revenue while meeting local market needs.
Fuel Costs — For the company’s thermal generation plants, fuel is a significant component of its total cost of generation. Some of the company’s contracts include indexation for fuels. In those cases, it seeks to match its fuel supply agreements to the indexation. For certain projects, it has tolling arrangements where the power offtaker is responsible for the supply and cost of fuel to the company’s plants.
In short-term sales, the company sells power at market prices that are generally reflective of the market cost of fuel at the time, and thus procure fuel supply on a short-term basis, generally designed to match up with its market sales profile.
50% of the capacity of the company’s generation plants is fueled by renewables, including solar, hydro, wind, energy storage and landfill gas, which do not have significant fuel costs.
32% of the capacity of the company’s generation plants is fueled by natural gas. Except for its plants in the Dominican Republic and Panama, where the company imports LNG to utilize in the local market, it uses gas from local suppliers in each market.
16% of the capacity of the company’s generation fleet is coal-fired. In the U.S., most of its coal-fired plants are supplied from domestic coal. At the company’s non-U.S. generation plants, and at its plant in Puerto Rico, it sources coal from a mix of sources from the international market and in the local jurisdictions. To the extent possible, the company utilizes its global sourcing program to maximize the purchasing power of the company’s fuel procurement.
2% of the capacity of the company’s generation fleet utilizes pet coke or oil for fuel. The company sources oil and diesel locally at prices linked to international markets. The company largely sources pet coke from Mexico and the U.S.
Utilities
The company’s utility businesses consist of AES Indiana and AES Ohio in the U.S., and four utilities in El Salvador. AES' six utility businesses distribute power to 2.7 million customers and AES' two utilities in the U.S. also include generation capacity totaling 3,561 MW.
AES Indiana, the company’s fully integrated regulated utility, and AES Ohio, its transmission and distribution regulated utility, each operate as the sole distributors of electricity within their respective jurisdictions. AES Indiana owns and operates all the facilities necessary to generate, transmit, and distribute electricity. AES Ohio owns and operates all the facilities necessary to transmit and distribute electricity. The company’s distribution business in El Salvador faces limited competition due to significant barriers to enter the market. According to El Salvador's regulation, large, regulated customers have the option of becoming unregulated users and requesting service directly from generation or commercialization agents.
In general, the company’s utilities sell electricity directly to end-users, such as homes and businesses, and bill customers directly.
Development and Construction
The company develops and constructs new generation facilities. The projects are developed subject to regulatory approval that permits recovery of the company’s capital cost and a return on its investment. For the company’s generation businesses, its priority for development is in key growth markets, such as the U.S. and Chile, where the company can leverage its global scale and synergies with the company’s existing businesses by adding renewable energy. The company makes the decision to invest in new projects by evaluating the strategic fit, financial profile, projected returns and risk for the investment and against alternative uses of capital, including corporate debt repayment.
In most cases, the company enters long-term contracts for output from new facilities prior to commencing construction. To limit required equity contributions from the company, it also seeks non-recourse project debt financing and other sources of capital, including partners, when it is commercially attractive. The company typically contracts with a third party to manage construction, although its construction management team supervises the construction work and tracks progress against the project's budget, schedule, and the required safety, efficiency and productivity standards.
Segments
The company is organized into four technology-oriented SBUs: Renewables (solar, wind, energy storage, and hydro generation facilities); Utilities (AES Indiana, AES Ohio, and AES El Salvador regulated utilities and their generation facilities); Energy Infrastructure (natural gas, LNG, coal, pet coke, diesel, and oil generation facilities, and the company’s businesses in Chile); and New Energy Technologies (investments in Fluence, Uplight, Maximo, and other initiatives) — which are led by its SBU Presidents.
The company has two lines of business: generation and utilities. The company’s Renewables, Utilities, and Energy Infrastructure SBUs participate in its first business line, generation, in which the company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. The company’s Utilities SBU participates in its second business line, utilities, in which the company owns and/or operates utilities to generate or purchase, distribute, transmit and sell electricity to end-user customers in the residential, commercial, industrial and governmental sectors within a defined service area. In certain circumstances, the company’s utilities also generate and sell electricity on the wholesale market. The company’s New Energy Technologies SBU includes investments in new and innovative technologies to support leading-edge greener energy solutions.
Renewables
The company’s Renewables SBU is well-positioned to take advantage of the growth in data centers driven by the increase in power demand for generative artificial intelligence. In 2024, the company’s assets in operation grew to 13.2 GW.
The Renewables SBU has generation facilities in nine countries — the United States, Argentina, Colombia, Mexico, Panama, Bulgaria, the Dominican Republic, Jordan, and the Netherlands.
Generation — Total operating installed capacity of the Renewables SBU is 13,229 MW.
AES Clean Energy
AES' U.S. renewables portfolio, referred to as AES Clean Energy, is the leading U.S. renewables growth platform in serving large corporations with its 53 GW development pipeline. AES Clean Energy aims to solve customers' energy challenges by offering an expanded portfolio of innovative solutions based on cutting-edge technologies that are designed to accelerate customers' transitions to carbon-free energy. The generation capacity of the systems owned and/or operated under AES Clean Energy is 8,927 MW across the U.S., with another 3,306 MW under construction, including 1,524 MW of solar, 500 MW of wind, and 1,282 MW of energy storage. AES Clean Energy has a 7.3 GW backlog of projects, the majority of which are expected to come online through 2027. The expansion of data center needs related to the growing use of generative artificial intelligence are expected to be a significant accelerant to the growth of the U.S. renewables market and AES seeks to capture a significant portion of this market expansion.
AES Clean Energy consists of AES Renewable Holdings, sPower, ACED, and other renewables assets, as part of its broader investments in the U.S. ACED was formed on February 1, 2021, as specifically identified projects in the sPower and AES Renewable Holdings development platforms were merged. ACED serves as the development vehicle for all future renewable’s projects in the U.S. Following the merger, ACED expanded organic and inorganic efforts to become a clear leader in the U.S. renewables industry. In 2024, it built off its successes in customer-centric mergers and acquisitions to add over 1 GW of high-quality projects to its backlog. Since 2021, the development pipeline has also more than doubled.
Development Strategy — As states, communities, and organizations of all types make commitments and plan to reduce their carbon footprints, renewables are the fastest-growing source of electricity generation in the U.S. AES Clean Energy works with its customers to co-create and deliver the smarter, greener energy solutions that meet their needs, including 24/7 carbon-free energy. For example, AES has worked with several major technology companies to provide clean energy solutions to power their network of data centers, and the company sees these relationships growing as utilization of generative artificial intelligence drives the expansion of data center use.
In 2024, AES Clean Energy signed or was awarded 3,506 MW of PPAs. As of December 31, 2024, AES Clean Energy's renewables project backlog included 7.3 GW of projects for which long-term PPAs has been signed or, as applicable, contracts have been assigned through a regulatory process.
AES Argentina
AES operates plants in Argentina within the Renewables SBU totaling 1,407 MW, representing 3% of the country's total installed capacity, and AES Argentina's plants are placed in strategic locations within the country to provide energy to the spot market and customers.
AES primarily sells its energy in the wholesale electricity market where prices are largely regulated. In 2024, approximately 76% of the energy sold in the wholesale electricity market was produced by the hydropower plants, and 24% generated by the wind power plants.
Development Strategy — AES Argentina has a pipeline of 980 MW of wind and solar greenfield projects in different stages of development. These projects are adjacent or nearby to AES Argentina's operating assets and could be used to participate in future private auctions for renewable PPAs.
AES Colombia
The company operates in Colombia through AES Colombia, a subsidiary of AES Andes, which owns Chivor, a hydroelectric plant with an installed capacity of 1,000 MW and Tunjita, a 20 MW run-of-river hydroelectric plant, both located approximately 100 miles east of Bogota, as well as the solar facilities of Castilla, Brisas, and San Fernando, 21 MW, 26 MW, and 61 MW respectively. AES Colombia’s installed capacity accounted for approximately 5% of system capacity at the end of 2024. AES Colombia is dependent on hydrological conditions, which influence generation and spot prices of non-contracted generation in Colombia.
AES Colombia receives reliability payments for maintaining the plant's availability and generating firm energy during periods of power scarcity, such as adverse hydrological conditions, in order to prevent power shortages.
Development Strategy — AES Colombia is committed to supporting its customers to diversify their energy supply and become more competitive. As part of this commitment, AES Colombia is developing a pipeline of 1.3 GW of solar and wind projects. Six wind projects totaling 1,149 MW are in La Guajira, one of the windiest spots in the world. Of the 1,149 MW, 255 MW were awarded 15-year PPAs in the renewable auction in 2019 and have had environmental licenses granted. AES Colombia is also developing Girasoles, a 100 MW solar project located in the state of Tolima.
AES Panama
AES owns and operates five hydroelectric plants totaling 705 MW of generation capacity, a wind farm of 55 MW, and five solar plants totaling 48 MW, which collectively represent 16% of the total installed capacity in Panama.
The majority of the company’s hydroelectric plants in Panama are based on run-of-the-river technology, with the exception of 223 MW Changuinola plant with regulating reservoirs and the 260 MW Bayano plant. Variations in hydrology can result in an excess or a shortfall in energy production relative to the company’s contractual obligations. Hydro generation is generally in a shortfall position during the dry season from January through May, which is offset by thermal and wind generation since its behavior is opposite and complementary to hydro generation.
The company’s hydro assets are mainly contracted through medium to long-term PPAs with distribution companies, while a small volume of its hydro plants is contracted with unregulated users. The company’s hydro assets in Panama have PPAs with distribution companies expiring up to December 2030 for a total contracted capacity of 350 MW.
Development Strategy — AES is investing in renewables projects within the region. This will increase complementary non-hydro renewables assets in the system and contribute to the reduction of hydrological risk in Panama.
AES Mexico
Mesa La Paz is a 306 MW wind project developed under a joint venture with Grupo Bal, located in Llera, Tamaulipas. Mesa La Paz sells 72% of its power under long-term PPAs expiring up to 2045.
Development Strategy — AES is actively working to develop new renewable energy projects that may increase its market share in the Mexican National Energy System, with a strong commitment to provide energy support for the economic growth of the country.
AES Bulgaria
AES owns an 89% economic interest in the St. Nikola wind farm (‘Kavarna’) with 156 MW of installed capacity.
AES Dominicana
AES Dominicana has three operating subsidiaries within the Renewables SBU, each of which are owned 65% by AES. Bayasol owns and operates a 50 MW solar farm, Santanasol operates a 50 MW solar farm, and Agua Clara operates a 50 MW wind farm.
AES has a strategic partnership with the Estrella and Linda Groups (‘Estrella-Linda’), a consortium of two leading Dominican industrial groups that manage a diversified business portfolio. In December 2023, AES completed the sale of an additional 10% ownership interest in AES Dominicana to the existing partners and a 10% interest to Grupo Popular's subsidiary, AFI Popular, selling 20% ownership interest in total. After this transaction, AES' ownership interest in AES Dominicana is 65%.
AES Puerto Rico
AES Puerto Rico owns and operates Ilumina, a 24 MW solar facility in Puerto Rico. The plant is fully contracted through a long-term PPA with PREPA expiring in 2037. In addition, AES began construction on 485 MW of new renewables in 2024.
Development Strategy — Puerto Rico has clear goals of supplying its system from renewable resources, with a target of 100% by 2050.
AES Jordan
In Jordan, AES has a 36% controlling interest in a 48 MW solar plant fully contracted with the national utility under a 20-year PPA expiring in 2039. The company consolidates the results in its operations as the company has a controlling interest in this business.
AES Brasil
AES sold its interest in AES Brasil in October 2024. With an exclusive focus on renewable energy, AES Brasil had a portfolio leveraging hydro, solar, and wind generation. As a 100% renewable energy generator, AES Brasil held a diversified portfolio and expanded from an installed capacity of 2.7 GW in 2016 to 5.2 GW at time of sale in 2024, which was composed of hydroelectric plants (2,658 MW), wind complexes (2,189 MW), and solar complexes (328 MW).
Utilities
The company’s Utilities SBU is the second largest contributor to its future growth, particularly in the U.S., where the company is targeting a combined 10% annual growth in rate base at the company’s two utilities: AES Indiana and AES Ohio. AES Indiana and AES Ohio are working with several companies to provide solutions for the electric service needs of data centers, and the company sees these relationships growing as utilization of generative artificial intelligence drives the expansion of data center use within its service territory.
In the Utilities segment, the company also has four utilities in El Salvador and a portfolio of generation facilities, including at its integrated utility in Indiana, with installed operating capacity of 3,704 MW. IPALCO (AES Indiana's parent), AES Ohio, and DPL Inc. (AES Ohio's parent) are all SEC registrants, and as such, follow the public filing requirements of the Securities Exchange Act of 1934.
AES Indiana
IPALCO is a holding company whose principal subsidiary is AES Indiana. AES Indiana is an integrated utility that is engaged primarily in generating, transmitting, distributing, and selling electric energy to retail customers in the city of Indianapolis and neighboring areas within the state of Indiana. AES Indiana has an exclusive right to provide electric service to the customers in its service area, covering about 528 square miles with an estimated population of approximately 968,000 people.
AES Indiana owns and operates four generating stations, all within the state of Indiana. The first station, Petersburg, is coal-fired, and consists of four units. AES Indiana retired 230 MW Petersburg Unit 1 in May 2021 and 415 MW Petersburg Unit 2 in June 2023, which resulted in 630 MW of total retired economic capacity at this station. AES Indiana plans to convert the remaining two coal units at Petersburg to natural gas (see Integrated Resource Plan below). The second station, Harding Street, consists of three natural gas-fired boilers and steam turbines and uses natural gas and fuel oil to power five combustion turbines. In addition, AES Indiana operates a 20 MW battery-based energy storage unit at this location, which provides frequency response. The third station, Eagle Valley, is a CCGT natural gas plant. The fourth station, Georgetown, is a peaking station that uses natural gas to power combustion turbines. In addition, AES Indiana helps meet its customers' energy needs with long-term contracts for the purchase of 200 MW of wind-generated electricity and 94 MW of solar-generated electricity.
AES Indiana also owns and operates two renewable energy projects, including a 195 MW solar project located in Clinton County, Indiana (the ‘Hardy Hills Solar Project’), which achieved full commercial operations in May 2024, and a 106 MW wind facility located in Benton County, Indiana (the ‘Hoosier Wind Project’), which was acquired in February 2024.
In August 2023, AES Indiana completed the acquisition of Petersburg Energy Center, LLC, including the development of a 250 MW solar and 45 MW (180 MWh) energy storage facility (the ‘Petersburg Energy Center project’). The Petersburg Energy Center project is expected to be completed in 2025.
In June 2023, AES Indiana executed an agreement for the construction of the 200 MW (800 MWh) Pike County BESS project to be developed at the AES Indiana Petersburg Plant site in Pike County, Indiana. The Pike County BESS project is expected to be placed in service during the first quarter of 2025.
AES Indiana is subject to comprehensive regulation by the IURC with respect to its services and facilities, retail rates and charges, the issuance of long-term securities, and certain other matters. The regulatory authority of the IURC over AES Indiana's business is typical of regulation generally imposed by state public utility commissions. The IURC sets tariff rates for electric service provided by AES Indiana.
Development Strategy — AES Indiana's construction program is composed of capital expenditures necessary for prudent utility operations and compliance with environmental regulations, along with discretionary investments designed to replace aging equipment or improve overall performance.
Integrated Resource Plan — In December 2022, AES Indiana filed its Integrated Resource Plan (‘IRP’), which describes AES Indiana's Preferred Resource Portfolio for meeting generation capacity needs for serving AES Indiana's retail customers over the next several years. The Preferred Resource Portfolio is AES Indiana's reasonable least cost option and provides a cleaner and more diverse generation mix for customers. Additionally, AES Indiana plans to add up to 1,300 MW of wind, solar, and battery energy storage by 2027.
AES Ohio
DPL is a holding company whose principal subsidiary is AES Ohio. AES Ohio is a utility company that transmits and distributes electricity to approximately 537,000 retail customers in a 6,000 square mile area of West Central Ohio. AES Ohio has the exclusive right to provide transmission and distribution services to its customers and procures retail standard service offer (‘SSO’) electric service on behalf of residential, commercial, industrial, and governmental customers through a competitive bid auction process.
AES Ohio is regulated by the PUCO for its distribution services and facilities, retail rates and charges, reliability of service, compliance with renewable energy portfolio requirements, energy efficiency program requirements, and certain other matters. The PUCO maintains jurisdiction over the delivery of electricity, SSO, and other retail electric services.
AES Ohio's distribution rates are regulated by the PUCO and are established through a traditional cost-based rate-setting process. AES Ohio's retail rates include various adjustment mechanisms, including but not limited to, the timely recovery of costs incurred related to power purchased through the competitive bid process, participation in the PJM RTO, severe storm damage, and energy efficiency.
AES Ohio is a member of PJM (PJM Interconnection, LLC), an RTO that operates the transmission systems owned by utilities operating in all or parts of a multi-state region, including Ohio. PJM also administers the day-ahead and real-time energy markets, ancillary services market and forward capacity market for its members.
Development Strategy — Planned construction projects primarily relate to new investments in and upgrades to AES Ohio's transmission and distribution system.
AES El Salvador
AES El Salvador is the majority owner of four of the five distribution companies operating in El Salvador (CAESS, CLESA, EEO and DEUSEM). AES El Salvador's territory covers 77% of the country and accounted for 4,499 GWh of the market energy sales during 2024. AES El Salvador owns and operates four solar farms, Opico Power, Moncagua, and Metapan with 4 MW, 3 MW and 15 MW of capacity, respectively; Meanguera del Golfo, a solar and battery storage facility with 1 MW capacity; AES Nejapa, a biomass power plant with 6 MW capacity; and 50% of Bosforo and Cuscatlan Solar, solar farms with 100 MW and 10 MW capacity, respectively. The energy produced by these solar farms is fully contracted by AES' utilities in El Salvador.
In addition, AES El Salvador offers customers non-regulated services such as energy trading, electromechanical construction, O&M of electrical assets, EPC, pole rental, and tax collection for municipalities.
Development Strategy — In order to explore new business opportunities, AES El Salvador created AES Soluciones, an LED public lighting service provider and the main commercial and industrial solar photovoltaic EPC provider in the country. Electromobilty is also being promoted by AES Soluciones through a partnership with Blink Charger to design and deploy a private network of electric chargers throughout the country. AES Next, Ltda de C.V. is the O&M services provider for the Bosforo project, as well as a developer of solar MW in El Salvador. Furthermore, the four distribution companies operated by AES El Salvador started a digitization and modernization initiative as part of the development, sustainability, and growth strategy of the business.
Energy Infrastructure
The company’s Energy Infrastructure SBU aims to provide energy security to enable the integration of new renewables, maximize the value of its gas generation and LNG business through flexible operations that support the energy transition, and exit coal generation to achieve the company’s decarbonization targets. This segment consists of generation facilities, using natural gas, LNG, coal, pet coke, diesel, and/or oil, in nine countries — Vietnam, the United States, Argentina, Chile, Bulgaria, Mexico, Jordan, Panama, and the Dominican Republic. Although the company’s businesses in Chile have a mix of generation sources, including renewables, the generation from all sources is pooled to service its existing PPAs. Consequently, all of Chile’s generation is included within the Energy Infrastructure SBU.
Generation — Operating installed capacity of the company’s Energy Infrastructure segment totals 15,176 MW.
AES Chile
In Chile, the company engages in the generation and supply of electricity (energy and capacity) in the Sistema Electrico Nacional in Chile (SEN). AES has a 99.5% ownership interest in AES Andes, a private company since April 17, 2024. AES also has a 100% ownership interest in AES Pacífico Chile, created in 2024 to advance the construction of new renewables capacity. In Chile, AES is the second largest generation operator in terms of installed capacity with 3,685 MW, excluding energy storage, and has a market share of approximately 10% as of December 31, 2024. In addition, AES Chile has 451 MW of energy storage systems in operation.
In Chile, AES owns a diversified generation portfolio in terms of geography, technology, customers, and energy resources. The company’s generation plants are located near the principal electricity consumption centers, including Santiago, Valparaiso, and Antofagasta. The company’s diverse generation portfolio provides flexibility for the management of contractual obligations with customers, provides backup energy to the spot market, and facilitates operations under a variety of market and hydrological conditions.
In line with the Green Blend strategy, AES Andes has committed to not build additional coal-based power plants and to advance the development of new renewables projects, including the implementation of BESS and other technological innovations that will provide greater flexibility and reliability to the system.
Decarbonization Strategy — The Chilean government’s decarbonization plan includes the complete retirement of the SEN coal fleet by the end of 2040 and carbon neutrality by 2050. On April 15, 2024, AES Andes also definitively disconnected the coal-fired generation units Norgener 1 and Norgener 2, with an installed capacity of 276 MW, from the SEN.
In July 2021, AES Andes committed to the shutdown of coal-fired operations at its Ventanas 3, Ventanas 4, Angamos 1, and Angamos 2 units as early as January 1, 2025, once the safety, sufficiency, and competitiveness of the system allows it.
Development Strategy — In Chile, AES is committed to reducing the carbon intensity of the Chilean power grid and plans to increase the renewable energy capacity in its portfolio. As part of this commitment, AES Chile is building wind, solar, and battery projects to supply AES Andes' agreements with its main mining customers.
In total, the pipeline in Chile includes 5.8 GW under development at different stages and geographical locations. Within this portfolio, the company has made significant progress in the development of non-conventional renewable energy (‘NCRE’) projects that are already contracted. Several projects are being developed in the Antofagasta region: the Pampas hybrid project (120 MW wind, 160 MW solar + 229 MW-3hr), the Cristales solar power plant (187 MW + 267 MW-3hr), and the Arenales standalone BESS project (300 MW-3hr).
The U.S. Conventional Generation
In the U.S., the company owns a conventional generation portfolio. The principal markets and locations where the company is engaged in the generation and supply of electricity (energy and capacity) are the California Independent System Operator (‘CAISO’) and Puerto Rico. AES Southland, operating in the CAISO, is the company’s most significant generation business.
Many of the company’s non-renewable U.S. generation plants provide baseload operations and are required to maintain a guaranteed level of availability.
The company’s non-QF generation businesses in the U.S. operate as Exempt Wholesale Generators as defined under the Energy Policy Act of 1992, amending the Public Utility Holding Company Act (‘PUHCA’). These businesses, subject to approval of FERC, has the right to sell power at market-based rates, either directly to the wholesale market or to a third-party offtake such as a power marketer or utility/industrial customer.
AES Southland
AES Southland is one of the largest generation operators in California by aggregate installed capacity, with an installed gross capacity of 2,823 MW at the end of 2024. The four coastal power plants consist of AES Southland are in areas that are critical for local reliability and play an important role in integrating the increasing amounts of renewable generation resources in California. The AES Southland Energy Infrastructure assets are composed of two once-through cooling (‘OTC’) power plants and two combined cycle gas-fired generation facilities.
Southland — Southland consists of AES Huntington Beach, LLC and AES Alamitos, LLC (‘Southland OTC units’). Commencing on January 1, 2024, the Southland OTC units are contracted through Standby Capacity Purchase Agreements with the California Department of Water Resources (‘California DWR’), an agency of the State of California, as part of the Electricity Supply Strategic Reliability Reserve Program (‘Strategic Reserve’) established under California Assembly Bill 205. Under these agreements, California DWR is purchasing each facility’s available capacity for a three-year term.
The Southland OTC units are subject to a variety of rules governing water use and discharge. The units are required to comply with the more stringent of state or federal requirements. AES Southland's plan is to comply with the SWRCB OTC Policy by shutting down and permanently retiring all remaining generating units that utilize OTC by the compliance dates included in the OTC Policy.
Southland Energy — AES Huntington Beach Energy, LLC and AES Alamitos Energy, LLC, (collectively ‘Southland Energy’) each operate under 20-year tolling agreements with Southern California Edison (‘SCE’) to provide 1,387 MW of combined cycle gas-fired generation (through 2040).
AES Puerto Rico
AES Puerto Rico owns and operates a 524 MW coal-fired cogeneration plant representing approximately 9% of the installed capacity in Puerto Rico. This plant is fully contracted through a long-term PPA with PREPA expiring in 2027. AES Puerto Rico receives a capacity payment based on the plants' twelve month rolling average availability, receiving the full payment when the availability is 90% or higher.
AES Argentina and TermoAndes
AES operates plants in Argentina within the Energy Infrastructure SBU totaling 2,820 MW, representing 7% of the country's total installed capacity. AES owns a diversified generation portfolio in Argentina in terms of geography, technology, and fuel source, and AES Argentina's plants are placed in strategic locations within the country to provide energy to the spot market and contracted customers.
AES primarily sells its energy in the wholesale electricity market where prices are largely regulated. In 2024, approximately 75% of the energy was sold in the wholesale electricity market and 25% was sold under contract by TermoAndes power plant.
AES Vietnam
Mong Duong 2 is a 1,242 MW gross coal-fired plant located in the Quang Ninh Province of Vietnam and was constructed under a BOT service concession agreement expiring in 2040. This is the first coal-fired BOT plant using pulverized coal-fired boiler technology in Vietnam. The BOT company has a PPA with EVN and a Coal Supply Agreement with Vinacomin, both expiring in 2040.
On November 29, 2023, AES executed an agreement to sell its entire 51% interest in the Mong Duong 2 plant. The sale is expected to close by the end of 2025, subject to customary approvals, including from the Government of Vietnam and the minority partners in Mong Duong 2.
Development Strategy — In Vietnam, the company continues to advance the development of its Son My LNG terminal project, which has a design capacity of up to 9.6 million metric tonnes per annum, and the Son My 2 CCGT project, which has a capacity of about 2,250 MW.
The company received a formal approval as the government-mandated investor with 100% equity ownership in the Son My 2 CCGT project and executed a statutory memorandum of understanding with Vietnam’s Ministry of Industry and Trade to continue developing the Son My 2 CCGT project under Vietnam’s Build-Operate-Transfer legal framework. In October 2019, the company received formal approval as a government-mandated investor in the Son My LNG terminal project in partnership with PetroVietnam Gas. In September 2021, the company signed a joint venture agreement with PetroVietnam Gas, and in April 2022, established Son My LNG Terminal LLC, in which AES has a 39% interest. In July 2023, Son My LNG Terminal LLC received approval of investment policy and as the government-approved investor from the Binh Thuan Provincial People’s Committee. The Son My 2 CCGT project will utilize the Son My LNG terminal project and will be its anchor customer.
AES Mexico
The Termoelectrica del Golfo (TEG) and Termoelectrica del Penoles (TEP) pet coke-fired plants, located in Tamuin, San Luis Potosi, supply power to their offtakers under long-term PPAs expiring in 2027 with a 90% availability guarantee. TEG and TEP has successfully migrated from the legacy market to the new energy regime established by the Electric Industry Law of 2021, and both are operating according to ISO instructions.
AES Dominicana
AES Dominicana has two operating subsidiaries within the Energy Infrastructure Strategic Business Unit (SBU), Andres and Los Mina, both of which are owned 65% by AES. With a total of 697 MW of installed capacity, AES provides 12% of the country's capacity and supplies approximately 17% of the country's energy demand via these generation facilities. 575 MW are contracted with government-owned distribution companies.
Andres owns and operates a combined cycle natural gas turbine and an energy storage facility with combined generation capacity of 329 MW, as well as the only LNG import terminal in the country, with 160,000 cubic meters of storage capacity. Los Mina owns and operates a combined cycle facility with two natural gas turbines and an energy storage facility with combined generation capacity of 368 MW.
AES has a strategic partnership with the Estrella and Linda Groups (‘Estrella-Linda’), two leading Dominican industrial groups that manage a diversified business portfolio.
AES Dominicana has a long-term LNG purchase contract through the second half of 2034 to cover the expected dispatch for Andres and Los Mina. Andres has long-term contracts to sell regasified LNG to industrial users and third-party power plants within the Dominican Republic, thereby capturing demand from industrial and commercial customers and for other power generation companies that had switched their operations to natural gas.
AES partnered with Energas in a joint venture to operate the 50 km Eastern Pipeline in February 2020. The joint venture also developed an expanded LNG facility of 120,000 cubic meters, including additional storage, regasification, and truck loading capacity, which reached COD in the fourth quarter of 2023.
Development Strategy — AES will continue to develop the commercialization of natural gas and incorporate partners directly in gas infrastructure projects.
AES Bulgaria
The company’s AES Maritza plant is a 690 MW lignite fuel thermal power plant. AES Maritza's entire power output is contracted with NEK, the state-owned public electricity supplier, independent energy producer, and trading company. Maritza is contracted under a 15-year PPA that expires in May 2026. AES Maritza is collecting receivables from NEK in a timely manner. However, NEK's liquidity position is subject to political conditions and regulatory changes in Bulgaria.
The DG Comp is reviewing NEK’s PPA with AES Maritza pursuant to the European Union’s state aid rules.
AES Panama
AES owns and operates a natural gas-fired power plant with 381 MW of generation capacity. Furthermore, AES owns and operates an LNG regasification facility, a 180,000 cubic meter net storage tank, and a truck loading facility.
The company’s thermal asset in Panama has PPAs with distribution companies for a total contracted capacity of 350 MW expiring in August 2028, which matches the term of the LNG supply agreement of such thermal assets. The LNG supply contract has enough flexibility to divert volumes to the Dominican Republic, which increases the connectivity of the company’s two onshore terminals and allows it to optimize the LNG position of the portfolio.
AES partnered with Interenergy in a joint venture to build and operate the Gatun combined cycle gas power plant, which completed construction in 2024.
Development Strategy — The company’s LNG facility’s excess capacity in Panama, it is developing natural gas supply solutions for third parties, such as power generators and industrial and commercial customers. This strategy will support a growing demand for natural gas in the region and will contribute to AES' mission by reducing CO2 emissions as a result of using LNG.
AES Jordan
In Jordan, AES has a 10% ownership interest in Amman East, a 472 MW oil/gas-fired plant fully contracted with the national utility under a 25-year PPA expiring in 2033, and a 10% ownership interest in the IPP4 plant, a 250 MW oil/gas-fired peaker plant fully contracted with the national utility until 2039.
New Energy Technologies
The company’s New Energy Technologies SBU encompasses AES' efforts to incubate innovative solutions and invest in businesses that leverage cutting-edge technology to provide greener and smarter energy solutions, accelerating the energy transition. These activities enhance AES' competitive advantages in its businesses while enabling the growth of new business platforms. This segment includes ownership stakes in third-party platforms and internally developed initiatives, such as investments in Fluence, Uplight, 5B, and other ventures.
In 2024, AES partnered with the AI Fund to combine its power sector expertise with the fund's artificial intelligence capabilities, leveraging generative AI technology to address bottlenecks in the energy transition. Additionally, AES made significant advancements with Maximo, an AI-powered robot designed to enhance the speed, efficiency, and safety of solar installations.
Fluence
Fluence, created in 2018 as a joint venture by AES and Siemens AG, is a global energy storage technology and services company aligned with the AES strategy to drive decarbonization of the electric sector. Fluence is a leading global provider of energy storage products and services and AI-enabled digital applications for renewables and storage.
On November 1, 2021, Fluence Energy, Inc. completed its IPO and is listed on Nasdaq under the symbol ‘FLNC’. AES holds Class B-1 common stock, granting five votes per share held, and continues to hold its economic interest in the operating subsidiary of Fluence Energy, Inc. As of December 31, 2024, AES holds a 28.5% economic interest in Fluence. The company continues to account for Fluence as an equity method investment.
Development Strategy
Fluence is positioned to be a leading participant in this growth, with 5.8 GW of energy storage assets deployed and 7.8 GW of contracted backlog, with a gross global pipeline of 30.3 GW as of December 31, 2024.
Uplight
The company holds an equity interest in Uplight as part of its digitization and growth strategy. Uplight connects energy providers to their decarbonization goals through cloud-based solutions that educate energy consumers and optimize grid demand. Uplight provides software and services to over 80 of the leading electric and gas utilities, principally in the U.S. Utility and energy company leaders rely on Uplight and its unified, end-to-end customer energy experiences to quickly deploy solutions that improve customer satisfaction and reduce carbon emissions.
As of December 31, 2024, the company held a 24.6% ownership interest in Uplight, following Uplight’s acquisition of AutoGrid, a market leader in distributed energy resource management and virtual power plants, on February 9, 2024. Uplight continues to be accounted for as an equity method investment.
Development Strategy — AES' collaboration with Uplight is designed to create value for Uplight, AES, and their respective customers. AES Indiana and AES Ohio has implemented Uplight's consumer engagement solutions in the support of energy efficiency and demand response programs, as well as piloted new solutions with Uplight.
5B
The company has a strategic investment in 5B, a solar technology innovator with the mission to accelerate the transformation of the world to a clean energy future. 5B's prefabricated, pre-wired ground mount design enables solar projects to be installed up to three times faster, while allowing for up to two times more power within the same footprint and can sustain higher wind speeds than traditional solar plants.
Development Strategy — As of December 31, 2024, 5B has achieved sales orders of over 300 MW. AES expects to utilize this technology in conjunction with ongoing automation and digital initiatives to speed up delivery time and lower costs. 5B technology has been deployed at multiple locations in AES for a total of 23 MW across five projects in Panama, Chile, El Salvador, and the U.S., with future deployments expected across markets in the AES portfolio, including a 69 MW project in Puerto Rico.
Customers
The company sells to a wide variety of customers. In the company’s generation business, it owns and/or operate power plants to generate and sell power to wholesale customers, such as utilities and other intermediaries. The company’s utilities sell to end-user customers in the residential, commercial, industrial, and governmental sectors in a defined service area.
Environmental and Land-Use Regulations
AES El Salvador distribution rates are regulated by SIGET.
The company's U.S. facilities are subject to the U.S. Clean Water Act (CWA) Section 316(b) rule issued by the EPA effective in 2014 that seeks to protect fish and other aquatic organisms drawn into cooling water systems at power plants and other facilities.
International Environmental Regulations
All AES Argentina plants are certified under international standards of Quality (ISO 9001), Safety and Health (ISO 45.001) and Environment (ISO 14001).
At the end of 2023, AES Colombia obtained the environmental license, issued by the National Environmental Licensing Authority (ANLA), for the 500 kV line to connect the Guajira pipeline projects. AES Colombia has obtained environmental licenses for 406 MW of wind projects in Guajira.
History
The company was founded in 1981. It was incorporated in 1981. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000.
