AES Andes consolidates Greentegra strategy with new projects and 100% renewable plants

The entry into operation of the Mesamávida and Los Olmos wind farms stands out, together with the start of the environmental permitting process of the Alba project and the upcoming construction of Adelaida, the company's first green H2 initiative in Chile.

Santiago, November 4, 2022

In line with its commitment to accelerate the future of energy, AES Andes continues to consolidate the execution of its Greentegra transformational strategy, while demonstrating solid operational and financial performance and commercial resiliency.

This year the company began commercial operation of 168 MW in wind farms. These are Los Olmos and Mesamávida, both in the Biobío region, while the Andes Solar IIb (solar plus battery storage) and Campo Lindo (wind) projects are moving forward to reach commercial operation at the beginning of 2023 and continue adding renewable capacity to The Company’s portfolio.

In addition, Alto Maipo, a 531 MW renewable project, essential for Chile's decarbonization process, is already a reality and is delivering 100% renewable energy to the National Electric System.

In the first nine months of the year, the company registered an EBITDA of US$ 580 million, 14% higher than the accumulated in September 2021, if we exclude recognition of the Angamos subsidiary agreement.

In Chile, the better results were due to lower contract supply costs, associated with lower physical purchases in the spot market at lower prices. Added to the above is a positive variation in Colombia due to higher sales margins due to a rise in prices. The positive variation in Argentina is largely explained by the greater availability of TermoAndes and the recovery of insurance, related to an accident in 2021.

Between January and September, the company reported a net profit of US$180 million, which compares positively with the net loss of US$144 million for the same period in 2021. The variation is mainly explained by the improvement in operating results and by the accounting impacts related to the decarbonization process, recognized in 2021.

The CEO of AES Andes, Javier Dib, highlighted that "the financial results show the resilience of the Company in the execution of Greentegra, which is a reflection of the strategic discipline of our entire team to honor the commitment that we have with the decarbonization of the energy matrix and the contribution of new 100% renewable solutions”.

Other notable milestones

Molten salts Conversion
In October, the company submitted its Alba project to the environmental permitting process. Alba is a pioneering initiative worldwide that seeks to be an alternative for the reconversion to thermoelectric plants through the use of molten solar salts.
The project explores the possibility of replacing the current coal-fired generation of units 1 and 2 of the Angamos Thermoelectric Power Plant, located in Mejillones, Antofagasta Region, with a system of molten solar salts (Molten Salt). With this technology, renewable energy is stored as heat to later be used to provide energy and emission-free capacity to the electrical system.

First foray into Green Hydrogen
Also in October, AES Andes announced the launch of the country's first green hydrogen Open Season, after receiving environmental approval from Adelaida, its first project with this energy vector in Chile.

The process seeks to activate the market and trigger a specific demand from companies in the Antofagasta Region interested in using green hydrogen to make their operations more sustainable.

Adelaida contemplates the construction and operation of a green hydrogen (GH2) production plant located in the facilities of the Angamos plant. It will have a green hydrogen production capacity of 1,000 kg/day, equivalent to 2.5 MW of power. It also considers two GH2 fueling stations for vehicles that use hydrogen as fuel, especially for mining, port, or other industries.

Decarbonization
On July 22, 2022, AES Andes received authorization from the National Energy Commission (CNE) for the withdrawal, disconnection, and cessation of operations of unit 1 of the Ventanas power plant as of June 30, 2022. This Unit is a coal-fired plant that was in "Strategic Reserve Operational Status" since December 29, 2020.

By 2025, the Company will have closed, sold, or released from contractual obligations 72% of its coal-fired generation units and will continue with the necessary efforts to make its customers' energy supply more sustainable.

Gender equality
The Company has made significant progress in gender equality, which is reflected in concrete actions such as increasing the number of women in leadership positions and expanding the female workforce. While at the end of last year 21% of women held leadership positions, as of October 2022 the figure reached 27%.
Meanwhile, the firm's total female workforce increased its presence from 10% (3 years ago) to 17% today.

All this effort is reflected in different recognitions, such as Great Place To Work, which placed AES Chile in seventh place among the best work companies for women.

Great Place to Work
AES Andes was recognized by Great Place To Work as one of the best companies to work for in Chile.