AES Andes reactivates energy exchange between Chile and Argentina

November 11, 2022

Santiago, Chile - With the presence of authorities from Chile and Argentina, AES Andes gave the go to bidirectional energy exchanges between both countries through the InterAndes electrical interconnection line.

The announcement was made at a ceremony at the Ministry of Energy in Santiago, which was attended by minister Diego Pardow, the Executive Vice President and COO of AES, Bernerd Da Santos - from Egypt where he is participating in COP27 -, the CEO of AES Andes, Javier Dib, and the Secretary of Energy of the Argentine Nation, Flavia Royón, together with Martín Genesio, CEO of AES Argentina, who participated from the AES San Nicolás plant in Argentina.

The electricity exchange operates through the Company's InterAndes line. It is a 345 kV transmission line that runs 409km between the Andes substation in Chile and the Cobos substation in Argentina.

With this agreement, up to 80 MW can be exported from Chile to Argentina during the day. While during the night, up to 200 MW can be imported to Chile. This way, diesel generation can be displaced in Chile at night, lowering systemic costs and reducing emissions. It will also reduce the curtailment of renewable energy in the Chilean electrical system.

The approved modality consists of exchanges of economic opportunity, which will be interruptible if the network operators of the respective countries consider it necessary.

The agreement establishes that the systems will not operate in sync but that electrically isolated generation components will be used in Chile during the day and in Argentina during the night. In addition, this link will also serve as a backup in the event of electrical emergencies, improving the resilience of both systems.

The Minister of Energy, Diego Pardow, stated that “the Andes-Salta electrical interconnection project, which is once again operating between the two countries, represents another step in cooperation between Chile and Argentina. It represents a contribution to the development of renewable generation, because it allows the export of curtailed energy. On the other hand, it constitutes an increase in the security of energy supply, given the contribution it would make to our country in the hours of less renewable generation. Therefore, the project that begins to operate again between both countries, represents another step in energy cooperation and a concrete advance in the regional energy integration that we long for”.

The Secretary of Energy of Argentina, Flavia Royón, assured that “when we think of energy we are thinking of the growth of our industrial sector, access to an input at competitive prices, and the possibility that small and medium-sized companies incorporate with an increasing participation in the opportunities that energy diversification offers in the framework of the transition”.

Along with thanking the authorities of both countries for their efforts, Bernerd Da Santos assured that “this agreement that we celebrate today is a living example of how, working together, we can promote fair and responsible energy transitions in Chile and Argentina. Proof of this is that cooperation between neighboring countries and the private sector can contribute to the energy integration of the region in search of achieving their emission reduction goals and boosting their economies. We thank both governments for allowing us to be an active part of their development and we will continue to work together for a more sustainable, reliable and affordable energy future.”

The CEO of AES Andes, Javier Dib, commented that “today is a great day for Argentina and Chile. From this moment on, energy exchanges are already a reality, helping to provide security to both systems and becoming a key enabler in the energy transition process, by reducing the curtailment of renewable energy from the system”.

“The AES InterAndes line is a source of pride for both countries. I want to highlight the constant support of both governments. By all working together, for a common goal, we are accelerating the future of energy,” said Dib.

About AES Andes

AES Andes generates and sells energy in Chile, Colombia and Argentina with the mission of accelerating the future of energy, together. The Company operates 5,101 MW in the region along with a large portfolio of renewable energy projects under development. The company is one of the main generation companies in the region, with a diversified portfolio that includes hydroelectric, wind, solar, energy storage, biomass, gas and coal plants.

In Chile, AES Andes owns and operates 3,356 MW, made up of 2,129 MW of thermoelectric, 771 MW of hydroelectric, 277 MW of wind, 104 MW of photovoltaic solar and 13 MW of biomass, in addition to 62 MW of energy storage batteries, water desalination plants of sea, transmission lines and gas pipelines in Chile. The company also owns hydroelectric and solar plants in Colombia with a total capacity of 1,102 MW and a natural gas combined cycle plant in Argentina, with an installed capacity of 643 MW. AES Andes is 99% owned by The AES Corporation.