AES Andes completes the sale process of its stake in Guacolda

- The Company completed the transfer of ownership of its coal operations in Huasco, following FNE approval.

July 20, 2021.- After the Fiscalía Nacional Económica, the Chilean antitrust authority (FNE), approved the sale of the stake that AES Andes held in Guacolda Energía SpA., the process of transferring the shares to the new owner was completed today. In this way, Capital Advisors, through El Águila Energy II SpA, now controls 100% of Guacolda Energía.

AES Andes continues to accelerate the execution of its Greentegra transformational strategy, by divesting its 50% plus one share stake in Guacolda. The 764 MW complex in Chile represented 26% of the Company’s coal-fired operations. The Company will use the net proceeds of the US$34 million sale to fund renewable growth.

“This transaction represents a major step in the transformation of our company. We continue to advance in the fulfillment of our strategic objectives of reducing the carbon intensity of our portfolio, to make our customers’ energy supply more competitive and sustainable, together with strengthening the investment grade of the Company”, assured the CEO of AES Andes, Ricardo Falú.

The CEO highlighted the excellence, dedication and contribution of all Guacolda employees and thanked them for their great contribution to the sector during all these years emphasizing the importance of the role the plant plays for the safety of the system.

It’s worth to note that in the signed purchase agreements, El Águila Energy II SpA declared that it knew that AES Andes has adhered to the national decarbonization program and expressed its intention to maintain the commitment to be part of the voluntary closure program of the coal units by 2040.

 

Greentegra strategy

The announcement is part of the Greentegra transformational strategy carried out by AES Andes since May 2018 which aims to accelerate a safer and more sustainable energy future. Under this strategy, the Company has signed 10.5 TWh per year, while, in terms of capacity, it has added 221 MW of renewable generation and batteries to its portfolio and currently has 1,133 MW under construction. Thus, by 2024 it will have tripled its renewable energy and battery capacity, adding a total of 2.3 GW to its portfolio.

In addition, the firm is contributing to the sustainable reactivation with investments close to US$ 3 billion, which will generate more than 7.000 direct jobs, in the markets in which it operates.