AES Andes S A : reports the retirement of its coal-fired units in Tocopilla.

May 25, 2023

Reaffirming its commitment to the decarbonization of Chile's energy grid, AES Andes requested the early retirement of its 276MW Norgener Thermoelectric Power Plant.

May 25, 2023.- In a new step forward in its transformational strategy Greentegra, the board of AES Andes approved the early retirement of two additional coal-fired units totaling 276MW. With this announcement, the company has committed to decarbonize 1,693 MW in total from its portfolio by 2025.

The communication sent to the National Energy Commission informs the disconnection of Norgener units 1 and 2 - each of 138 MW - located in Tocopilla, Antofagasta Region, which will cease coal-fired generation operations as of December 31, 2025. The company will continue to evaluate future options for converting the plant to emission-free technologies in line with its strategy.

The CEO of AES Andes, Javier Dib, indicated that "the decision adopted by the board of directors ratifies the commitment of our company with the decarbonization plan that the country is carrying out". He also highlighted "the effort of our people to make the change in our energy grid a reality, reflected in their commitment to innovation and in the trust placed in the company, which translates into their integration in the Labor Reconversion Program that AES Andes launched in 2021".

The CEO also valued "the support and collaboration of our customers in the joint pursuit of competitive 100% renewable solutions for their operations, contributing materially to the country's electrical grid".

Chile's Minister of Energy, Diego Pardow, indicated "this announcement is an opportunity to advance in the conversion process of these thermal power plants, which allows us to continue incorporating renewable energy into our productive matrix, in line with our commitments as a country to achieve carbon neutrality by 2050".

The Minister added "we need to move towards a greener economy that allows us to maintain the productive vocation of these communities, generating more quality jobs hand in hand with caring for the environment."

Once the Norgener units cease operations, annual emissions of approximately one million tons of CO2 will be reduced, which is equivalent to the removal of more than 400,000 private vehicles from the streets of Chile.

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

AES Andes remains committed to its purpose of accelerating the future of energy, together and is moving forward in its transformation with the retirement of its coal-fired units and the construction and development of new renewable projects with storage technologies. The company continues to work with its employees, partners, customers, and communities to advance rapidly in this process, with an investment of more than 3 billion dollars in its new renewable energy projects.

About AES Andes

AES Andes generates and sells power in Chile, Colombia and Argentina. The company operates 5,199 MW in the region along with a large portfolio of renewable energy projects under construction and in development. The company is one of the region's leading generation companies, with a diversified portfolio that includes hydroelectric, wind, solar, energy storage, biomass, gas and coal plants.

In Chile, AES Andes owns and operates 3,427 MW, including 2,129 MW of thermoelectric, 771 MW of hydroelectric, 348 MW of wind, 104 MW of solar photovoltaic and 13 MW of biomass, in addition to 62 MW of energy storage batteries, seawater desalination plants, transmission lines and gas pipelines in Chile.

The company also owns hydroelectric and solar plants in Colombia with a total capacity of 1,129 MW and a natural gas combined cycle plant in Argentina with an installed capacity of 643 MW. AES Andes is 99% owned by The AES Corporation.