US-headed international power utility AES Corporation has announced its intention to fast-track an exit for coal used in its power generation portfolio by 2025.
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According to a statement, AES “is leading the industry’s transition to clean energy” by investing in clean power and innovative technology businesses.
AES says that it “is well-positioned to benefit from very favorable trends in clean power generation, distribution, and supporting technologies.”
In 2021, it completed the construction of or the acquisition of 2 079 MW of renewables and energy storage, primarily including 1 129 MW of solar, wind, and energy storage in the United States; 859 MW of hydro, wind, energy storage, and solar in Chile, Brazil, and Colombia; and 91 MW of solar in Panama and the Dominican Republic.
In the full year 2021, AES signed or agreed to acquire 4 965 MW of renewables and energy storage under long-term PPAs, bringing its backlog to 9 239 MW expected to be completed through 2025, including 3 497 MW under construction; and 5 742 MW signed under long-term PPAs.
AES intends to exit coal by 2025, through a combination of asset sales, fuel conversions, and retirements, while maintaining reliability and affordability, and subject to necessary approvals.
Previously, it expected to reduce its generation from coal to less than 10 percent of total generation by year-end 2025. The company currently has 7.1 GW of coal generation in operation across its portfolio.
Last year was AES’ best year ever, in terms of safety, new renewables PPAs signed, growth in our backlog of projects and pipeline, earnings, and cash flow. We signed 5 GW of new PPAs to consolidate our position as the fastest-growing US renewables developer and the largest supplier of corporate renewables contracts in the world. Our backlog of projects stands at 9.2 GW and our pipeline of potential projects grew to 59 GW. These results reflect the resiliency of our people, supply chains, and customer relationships in the midst of the global COVID pandemic. To continue to accelerate the future of energy, today, we are announcing our intent to exit coal generation by the end of 2025. We are committed to completing the transformation of AES while maintaining our guidance and delivering strong financial results. said Andrés Gluski, President and CEO of AES.