Friday 25 February 2022

Energy company AES plans to quit coal by 2025

Energy company AES plans to quit coal by 2025

The AES Corporation has announced its intention to exit coal by the end of 2025.

It follows the energy company's previous plans to reduce coal generation to less than 10% over the next three years, subject to necessary approvals.

AES intends to achieve its goal through a combination of asset sales, fuel conversions and retirements – it currently has 7.1GW of coal generation in operation across its portfolio.

Last year, AES completed construction of or the acquisition of 2,079MW of renewable and energy storage projects in the US, Chile, Brazil, Colombia, Panama and the Dominican Republic.

Since November 2021, it also signed or acquired 978MW of renewables and energy storage under long term power purchase agreements (PPAs).

Andrés Gluski, AES President and Chief Executive Officer said: “Last year was AES' best year ever, in terms of safety, new renewables PPAs signed, growth in our backlog of projects and pipeline, earnings and cash flow. We signed 5GW of new PPAs to consolidate our position as the fastest growing US renewables developer and the largest supplier of corporate renewables contracts in the world. Our backlog of projects stands at 9.2GW and our pipeline of potential projects grew to 59GW. These results reflect the resiliency of our people, supply chains and customer relationships in the midst of the global COVID pandemic.

“To continue to accelerate the future of energy, today, we are announcing our intent to exit coal generation by the end of 2025. We are committed to completing the transformation of AES, while maintaining our guidance and delivering strong financial results.”

Written by

Bruna Pinhoni

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