NYSE-listed The AES Corporation's decision to sell its stake in AES Brasil Energia to Brazilian renewable energy company Auren Energia is set to create the '3rd' largest energy generating company in Brazil.
Both AES Brasil and Auren Energia will merge to form Auren, a renewable energy company with an installed capacity of 8.8 GW and a combined EBITDA of BRL 3.5 billion ($681 million) for the year 2023.
Hydroelectric generation capacity will make up 54% of its total portfolio, followed by 36% wind and 10% solar. Auren will be listed on B3 Novo Mercado with its 39 operational and under construction assets.
AES is selling its 47.3% equity interest in AES Brasil for approximately $640 million valuing each share of the latter at close to BRL 11.55 ($2.25). AES Brasil has so far built more than 5.2 GW portfolio of renewable energy assets in which solar's share is 6% while hydroelectric and wind energy contribution stands at 51% and 43%, respectively. It comprises more than 3 GW of new wind and solar assets.
"With this transaction, AES is continuing to simplify its portfolio, while meeting its strong balance sheet objectives," explained AES President and CEO Andrés Gluski. "We are now focusing the vast majority of our investments into supplying renewable energy to corporate customers in the US and our rapidly growing utilities."
Recently, AES announced its Q1/2024 financial results. It has 12.7 GW of total backlog of renewable energy and energy storage projects under long-term contracts. It includes an additional 1 GW under a 15-year contract with Amazon, for a total of 2 GW at Bellefield. It calls the latter the largest single solar-plus-storage facility in the US.
Earlier in March 2021, AES sold off its distributed generation solar portfolio under AES Inova to EDP Brasil (see EDP Acquires Distributed Solar Generation Company).