AES Projects Growth Amidst Renewable Expansion and Strategic Initiatives

By Editor


The AES Corporation (AES) has unveiled growth plans for 2024, anticipating the addition of 3.6 GW of new projects.

This projection comes in tandem with the company’s momentum in achieving its targets, including the signing of Power Purchase Agreements (PPAs) totaling 5.6 GW in 2023, with a broader objective of reaching 14 to 17 GW of PPAs between 2023 and 2025.

AES Corporation celebrated significant milestones in 2023, marked by the signing of contracts for 5.6 GW of renewables, representing the third consecutive year of adding 5 GW or more to its backlog. Additionally, AES completed the construction of 3.5 GW of renewables throughout the year, effectively doubling new additions compared to the previous year.

Financially, AES surpassed expectations by securing $1.1 billion in asset sale proceeds, exceeding the target range of $400 to $600 million. Despite reporting a net loss of $182 million in 2023, a notable improvement from the $505 million loss in 2022, AES remains optimistic about its strategic trajectory.

Andres Gluski, AES President and Chief Executive Officer, in its earnings report, has expressed satisfaction with the company’s performance, highlighting achievements such as doubling renewables construction and expanding PPAs. Andres Gluski emphasized AES’s strong position to meet growing demand, particularly from corporate customers like data center companies.

Presently, AES boasts a backlog of signed PPAs standing at 12.3 GW, with 5.1 GW under construction. The company’s commitment to renewable energy extends to its global operations, as evidenced by the completion of 3.5 GW of solar, wind, and energy storage projects in 2023.

Locally, AES Indiana reached a unanimous settlement agreement for its first rate case since 2018, while AES Ohio received approval for its Electric Security Plan, paving the way for future investments.

Furthermore, AES remains dedicated to its decarbonization efforts, as demonstrated by the sale or closure of 2.1 GW of coal generation across various regions. The company also secured grant funding from the US Department of Energy for green hydrogen hubs and extended agreements for gas generation in California.

Looking ahead, AES anticipates an increase in Adjusted EBITDA growth to 5-7 percent through 2027, up from the previous range of 3-5 percent. Adjusted EPS growth targets have also been raised to 7-9 percent through 2027, with an initial guidance of $1.87 to $1.97 for 2024.

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