AES Andes S A : advances in decarbonization and adds new renewable assets to its portfolio

November 2, 2023

• The Company received authorization for the final disconnection of Unit 2 of Ventanas and its Norgener Thermoelectric Power Plant.
• The Company totaled an EBITDA of US$ 259 million during the third quarter of 2023, 37% higher than the same period of the previous year.

AES Andes continued to make steady progress in its Greentegra transformational strategy in the third quarter of 2023, thanks to new advances in its decarbonization process and the incorporation of more renewable assets into its portfolio.

During the third quarter of this year, the Company achieved an EBITDA of US$ 259 million, reflecting a positive variation of 37% compared to the US$ 189 million from the same period in 2022.

In line with the commitment to phase out coal-fired power plants from the national energy system, the Company's Board of Directors approved and received authorization for the early retirement of Unit 2 of the Ventanas Power Plant - located in Puchuncaví, Valparaíso Region - starting from December 31st, 2023.

Additionally, it received approval from the National Energy Commission for the request made at the end of May this year for the retirement of its 276MW Norgener Thermoelectric Power Plant, located in Tocopilla, Antofagasta Region, in 2025.

Advancing in its path of innovation and promotion of solutions with new technologies for the power grid, the Company successfully commissioned the largest battery storage system in Latin America in July at its Andes Solar IIb project, which has 180 MW of solar energy backed by a 5-hour 112 MW lithium battery energy storage system., in the Atacama Desert.

"The renewable transformation of AES Andes is now a reality and a source of pride for all our employees, who, despite a year of great challenges, have been able to materialize their commitment to the execution of Greentegra. This is reflected in many milestones and results that lead us to already have more than half of our portfolio's capacity comprised of emissions-free sources," said the Company's CEO, Javier Dib.

The Company recorded an EBITDA of US$ 542 million in the first nine months of 2023, which is US$ 37 million lower than the US$ 580 million from the same period last year.

In Chile, the negative variation of US$ 102 million is mainly explained by a significant increase in coal consumption costs in the second quarter of 2023, compared to the same period last year.

In Colombia, there was a positive variation of US$ 81 million thanks to higher revenue from energy sales in the spot market and an increase in system prices, while in Argentina, the decrease of US$ 17 million was explained by insurance recovery in 2022, which was mainly offset by an increase in the volume of contracts sold in the Energy Plus market.

Meanwhile, advances in the Diversity and Inclusion Policy were once again recognized by the Great Place to Work ranking, securing the fourth place among the best companies to work for women in Chile, in the category of firms with up to 1,000 employees. This represents a significant advancement, moving up three positions from the last participation in 2021, when the Company placed seventh.

New projects in operation

The Company continues to advance its Greentegra transformational strategy and is investing US$ 3 billion between 2023 and 2027 in solar, wind, and battery projects to add more than 3.2 GW of renewable capacity to its portfolio.

In June of this year, AES Andes acquired the Bolero Solar Park, located in the Sierra Gorda commune, also in the Atacama Desert. This is a photovoltaic plant with an installed capacity of 146 MW in operation, located about 100 kilometers from other AES Andes solar plants, and there are plans to add a battery energy storage system to it.

Additionally, in early May, the Company received authorization for the commercial operation of the Campo Lindo Wind Park, with 66 MW, located in Los Ángeles, Biobío Region, which joins Mesamávida and Los Olmos, both owned by AES Andes in southern Chile.

Introduction of new projects

In February, AES Andes submitted the hybrid Pampas project for environmental evaluation, located in Taltal, Antofagasta Region. The initiative includes an installed capacity of up to 392 MW, with an energy storage system of up to 624 MW for five hours.

The wind farm will have an installed capacity of up to 140 MW, while the photovoltaic plant will have two zones, for a total of up to 252 MW.

Additionally, in March, the Company submitted the Cristales solar project for environmental evaluation, also located in the Antofagasta Region. The future photovoltaic plant includes an energy storage system of up to 542 MW for five hours, along with an installed capacity of up to 379 MW photovoltaic.

This adds to the environmental processing submission of the Alba project during the last quarter of the previous year. This is a pioneering initiative worldwide that aims to be an alternative for the conversion of thermoelectric power plants through the use of molten solar salts (Molten Salt).

Diversity and gender equity

The Company continued to make steadfast progress in the areas of diversity and gender equality. In June, it announced its entry into the Pride Connection network of companies, an initiative promoted by the Iguales Foundation to promote inclusive workplaces for sexual diversity and to foster connections for attracting LGTBI+ talent.

In May, the Company officially received the Iguala Conciliación Seal from the Ministry of Women, through the National Service for Women and Gender Equity (SernamEG). This certification is awarded to organizations that implement integrated systems for gender equality and work-life balance, as part of Chilean Standard 3262, under which AES Andes was recertified at the end of last year, becoming the first company in the energy sector to achieve this standard.

Great Place to Work

At the end of March, the Company was recognized in Chile as one of the top six companies to work for, according to the Great Place To Work 2022 ranking in the category of up to 1,000 employees. The Company made a significant advancement of four places, surpassing the tenth position in 2021.

This is reflected in the care for people, work in diversity and inclusion, and in line with the first value of prioritizing safety, as well as other initiatives such as the development of hybrid work arrangements.