ARLINGTON - The AES Corporation (NYSE: AES) today announced robust near- and long-term goals.

'The energy sector is evolving as a result of decarbonization, electrification and digitalization, and AES is uniquely positioned to take advantage of this shift,' said Andres Gluski, AES President and Chief Executive Officer. 'Over the next five years, we will further transform our portfolio by materially accelerating our growth in renewables and at our US utilities. As a result, by 2025 we expect that more than 50% of our earnings will come from the US and more than 65% will come from renewables and our US utilities. Furthermore, today we are accelerating our target to reduce our generation from coal to below 10% by year-end 2025, by five years on a proforma basis, and initiating a target to achieve portfolio-wide net zero carbon emissions from electricity sales by 2040.'

'We continue to focus on delivering a compelling total return to shareholders and to that end, today, we are extending our target for 7% to 9% average annual growth in Adjusted EPS and Parent Free Cash Flow through 2025. This reflects the highly contracted nature of our portfolio and the attractive investment opportunities we are seeing in renewables, US utilities and LNG infrastructure,' said Gustavo Pimenta, AES Executive Vice President and Chief Financial Officer. 'At the same time, we will continue to strengthen our balance sheet by growing our cash flow to achieve and maintain BBB credit metrics.'

Uplight, an equity method investment of AES, is the technology partner of energy providers transitioning to the clean energy ecosystem, announced today that it has signed an investment agreement with a consortium of investors, including Schneider Electric (EURONEXT: SU), and private investors, including Coatue Management and Inclusive Capital Partners. This transaction values Uplight at $1.5 billion and following closing, AES' effective economic interest in Uplight will be approximately 30%. This transaction is subject to regulatory approvals and customary closing conditions.

AES Gener signed a Memorandum of Understanding in February 2021 with an established international hydrogen producer to conduct a feasibility study for the first large green hydrogen-based ammonia project in Chile. This project has the potential to require more than 800 MW of new renewable energy supply.

Guidance and Expectations1

The Company is extending its average annual growth rate target of 7% to 9% through 2025 for both Adjusted EPS and Parent Free Cash Flow, from a 2020 base.

The Company's average annual growth through 2025 is expected to be primarily driven by: contributions from annual renewables additions of 3 to 4 GW; rate base growth at US utilities; investments in LNG infrastructure in the Company's Mexico, Central America and the Caribbean Strategic Business Unit (SBU) and in Vietnam and growth at existing businesses. The Company's average annual growth rate target through 2025 also includes the impact from contract roll-offs through 2025, and announced asset sales and additional retirements in order to achieve the Company's 2025 decarbonization goal.

The Company is also reaffirming its 2021 guidance for Adjusted EPS of $1.50 to $1.58, compared to 2020 Adjusted EPS of $1.44. The Company is also reaffirming its expectation for 2021 Parent Free Cash Flow of $775 to $825 million, compared to 2020 Parent Free Cash Flow of $777 million.

The Company is also accelerating its goal to reduce coal generation to below 10% by 2025 on a proforma basis2, five years earlier than its prior expectation. Additionally, the Company is setting a new target to achieve portfolio-wide net zero carbon emissions from electricity sales by 2040.

Based on annual generation in MWh from the portfolio as of, or expected by the relevant date, adjusted for: (i) (+) generation from new assets added to the portfolio and (ii) (-) actual generation from announced asset sales or retirements.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding the COVID-19 pandemic, accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the 'SEC'), including, but not limited to, the risks discussed under Item 1A: 'Risk Factors' and Item 7: 'Management's Discussion & Analysis' in AES' 2019 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company's 2020 Annual Report on Form 10-K filed February 25, 2021 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made.

Contact:

Shirish Jajodia

Tel: 703-682-6506

Email: shirish.jajodia@aes.com

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