- AES Gener will invest in 1.6 GW of solar and wind power capacity to add to its portfolio in Chile and Colombia
- It targets an investment of $1.8 billion to realize this capacity for which it will look for partners and also aim for $500 million capital raise
- Inclusion of this capacity will make company’s renewable energy portfolio to account for 51% of all installed capacity of the group by 2024
Chilean electricity supplier AES Gener plans to invest $1.8 billion to develop 1.6 GW of solar and wind power projects in Chile and Colombia as part of its Greentegra strategy under which it plans to enhance its renewables portfolio and reduce the carbon intensity. Currently, it claims to be the company with the largest renewable capacity under construction in Chile.
AES Gener’s General Manager Ricardo Manuel Falu said, “With the projects that will be added to our portfolio, 51% of the installed capacity and 66% of the company’s EBITDA will come from renewable energy in 2024.”
Without sharing too many details about prospective projects, AES Gener said it will be looking for partners to invest in the 1.6 GW capacity while also shelling out money from its available cash and will go in for the largest capital increase in the company’s history with $500 million.
The management shared that in both these geographies, Chile and Colombia, AES Gener has signed renewable energy contracts for 8,100 GWh. By the end of 2023, it will add 2.1 GW of wind, solar and hydroelectric power to its portfolio.
Of its 5.229 GW of installed capacity, over 3 GW comprises coal power capacity while the share of solar is 43 MW. In Chile, AES Gener has a 21 MW Los Andes Solar Park operating since 2016. It is now expanding the same with 80 MW of bifacial capacity which is under construction. In Colombia, AES Gener has a 21 MW solar park in operation for the captive consumption of Ecopetrol’s Castilla oil field .
Last year, the Chilean power group entered into a 14-year renewable energy supply deal with Google for 440 GWh of hybrid solar and wind power per year (see Google Enters RE PPA For Chile Datacenter).
In February 2020, AES Gener signed up for a renewable energy supply agreement with Canadian copper mining producer Teck Resources Limited to power its Quebrada Blanca Phase 2 copper project in Chile with a 118 MW renewables portfolio of wind, solar and hydroelectric energy. This is in addition to the power supply for the projects from AES Gener’s 21 MW of solar power capacity.