AES Andes consolidates its renewable transformation

• -The start of operation at the 61 MW solar plant in Colombia and the beginning of generation at Alto Maipo and Los Olmos next month stand out.

 

Santiago, November 3, 2021.- AES Andes continues advancing with the execution of its transformational strategy Greentegra to become South America’s leading renewable energy company and reaches relevant milestones in the third quarter of 2021.

The Company inaugurated and began the operation of the 61 MW San Fernando Solar Plant, the largest and most innovative autogenerating photovoltaic plant in Colombia. This plant, built for Ecopetrol, near to Castilla in the Meta department. More than 750 people were employed during construction, 38% of which were women and 88% were from local communities.

AES Andes also highlighted that in southern Chile, the 110 MW Los Olmos wind farm is 93% complete and construction is expected to be completed next month.

Likewise, Alto Maipo, a 531 MW renewable project, essential for Chile's decarbonization process, is now a reality. Its construction is 99% complete, and the start of operations of its two plants, Alfalfal II and Las Lajas, will take place next month. The financial reorganization process of this project continues to advance with the objective of achieving achieve a more flexible and sustainable long-term debt structure for Alto Maipo.

In the first nine months of 2021, the company recorded an EBITDA of US$ 897 million, 32% higher than the same period of the previous year, which is mainly explained by the recognition of the agreement with Minera Escondida and Minera Spence, subsidiaries of BHP at Angamos and better hydrology in Colombia.

In the same period, the company reported a net loss of US$ 144 million, compared to a net loss of US$ 427 million registered in the same period of the previous year. Excluding non-recurring events, such as the recognition of the agreement with subsidiaries of BHP and the accounting impacts related to decarbonization, the company achieved a recurring net income of US$ 159 million in 2021 compared to US$ 165 million in the first nine months of 2020.

When comparing the third quarters of 2020 and 2021, a 33% drop in EBITDA is observed, from US$ 312 million to US$ 208 million, mainly due to the extraordinary revenue registered in the third quarter of 2020 from the anticipated termination of the Angamos contracts with subsidiaries of BHP.

Within the framework of the United Nations Conference on Climate Change in 2021 -COP 26-, the CEO of the company, Ricardo Falú, said that “at AES Andes we remain committed to contributing in the fight against climate change. To this end, we continue to make steady progress in the incorporation of renewable energy and batteries into the electrical system of the countries where we operate, with the purpose of accelerating the future of energy together.”

Falú added that "in the execution of our Greentegra strategy, we emphasize the design of innovative and intelligent solutions that contribute to the competitiveness and sustainability of our clients and that promote diversity and the local workforce."

 

Other highlights

Portfolio decarbonization

In line with its Greentegra transformational strategy, as soon as January 2025, 72% of the company's coal-fired installed capacity in 2018 will be hibernated, sold or will be ready to retire from the system.

Reaffirming its commitment to decarbonizing Chile's energy matrix, on July 6 of this year, the company committed to the retirement of four coal-fired units, which together total 1,097 MW. The Ventanas 3 and 4 units located in Puchuncaví and Angamos 1 and 2 located in Mejillones, as of January 1, 2025, will be available for retirement as soon as the security, sufficiency and competitiveness of the system allow it.

In July, the company completed the sale to Capital Advisors of the 764 MW Guacolda coal-fired plant located in Huasco, Atacama Region.

To accelerate the reduction of its carbon footprint, the firm has closed or sold all of its gas and diesel plants in Chile.

 

Green growth

During the third quarter, the company continued to advance in the construction and development of its renewable energy and battery projects, in order to increase the capacity of this kind of solutions by 173% by 2025, which, together with the retirement of thermal power plants, will reduce the emission of CO2 per MWh of its generation by 57%. This will allow to avoid 9 million tons of CO2, equivalent to removing 3.5 million vehicles from the Chilean streets.

Mesamávida continues its progress and will complete its construction in the first quarter of 2022, while Campo Lindo will reach construction completion in the second half of 2022. These projects will add a total of 141 MW of wind energy into the Chilean electricity system.

Meanwhile, in northern Chile, Andes Solar IIb - the solar plant with the largest battery storage system in Latin America - continues advancing to complete its construction in the first half of 2022.

 

Strategic Partner Incorporation for Renewable Projects

Global Infrastructure Partners (GIP) was incorporated on July 15, 2021, as partner in the Company´s renewable growth. AES Andes owns 51% and GIP 49% of Chile Renovables SpA’s shares, owner of Parque Eólico Los Cururos SpA, whose wind farm is currently in operation.

As projects begin operation and as the other conditions agreed between the parties are met, Chile Renovables SpA will acquire the companies that own the renewable projects Andes Solar IIa, Andes Solar IIb, Los Olmos, Mesamávida and Campo Lindo, for a total of 733 MW.

As a result of this transaction and including all the aforementioned projects, AES Andes expects to receive funds for an approximate amount of US$ 441 million between 2021 and 2023.

 

Great Place to Work

AES Andes was ranked in 10th of best companies to work for in Chile among corporations with more than 1,000 workers. Likewise, the company was recognized in the seventh place in the ranking in the Awards for Best Places to Work for Women 2021.