AES Andes S A : Requests Early and Final Withdrawal of Unit 2 of Ventanas Power Plant

August 24, 2023

To reaffirm its commitment to the decarbonization process of the country's energy matrix and in line with its Greentegra transformational strategy, the Board of Directors of AES Andes has approved the early withdrawal of Unit 2 of the Ventanas power plant.

The Company has requested from the National Energy Commission (CNE) the waiver of the 24-month deadline to report the decommissioning, shutdown and discontinuation of operations of Unit 2 of the Ventanas power plant as of December 31, 2023, thus cancelling the request to change the status of this unit to Strategic Reserve (ERE), which was made in 2020.

The General Manager of AES Andes, Javier Dib, stated that "the decision made by the company's Board of Directors honors the commitment we have made in Chile to shut down our coal-fired units as soon as the electricity system allows. Ventanas Unit 2 has been a fundamental pillar of the electrical security of the Valparaíso region throughout these years." He also highlighted "the commitment of our employees to continue promoting the transition to renewable energy and the trust placed in the company to achieve this progress."

Dib added that "our Greentegra transformational strategy has progressed as defined by the Company and our commitment to Chile: not only are we decommissioning our coal-fired operations, but by 2027 we will have added more than 3.8 GW of renewable capacity to our portfolio in the country".

Meanwhile, the Minister of Energy, Diego Pardow, pointed out that "AES was among the companies that joined the 2019 Decarbonization Agreement, a state policy that today we are going to complement with the Decarbonization Plan that we have launched as a government".

Pardow added that "in this sense, we appreciate the impulse of AES to contribute to this goal, understanding that this request must first be evaluated by the National Energy Commission and the National Electricity Coordinator under their respective jurisdictions."

Unit 2 of the Ventanas Power Plant has a gross capacity of 208 MW. When it is closed, along with the earlier closure of Unit 1, it will have eliminated more than 2.5 million tons of CO2, the equivalent of taking more than one million vehicles off the nation's roads.

AES Andes has shown concrete signs of its commitment to the country's decarbonization process and to the fight against climate change. The Company and its subsidiaries have announced tangible plans to retire 82% of the coal-fired capacity in its portfolio before launching its Greentegra strategy in 2018, in line with AES Corporation's intention to phase out coal by 2025.

The Company remains committed to working together to accelerate the future of energy and drive its transformation by decommissioning its coal-fired units and building new renewable projects, including storage technologies. AES Andes continues to work with its employees, partners, customers and communities to rapidly advance this process by investing more than $3 billion in new renewable energy projects.

About AES Andes

AES Andes generates and sells energy in Chile, Colombia and Argentina. The Company operates 5,636 MW in South America and owns a broad portfolio of renewable energy projects under development. The Company is one of the region's leading generators, with a diversified portfolio that includes hydroelectric, wind, solar, energy storage, biomass, gas and coal plants.

In Chile, AES Andes owns a portfolio of 3,864 MW, made up of 2,129 MW from thermal power, 771 MW from hydroelectric, 348 MW from wind, 429 MW from solar photovoltaic, and 13 MW from biomass sources, in addition to 174 MW of energy storage batteries, seawater desalination plants, and transmission lines.