AES Gener accelerates the retirement of 322 MW coal-fired units in ChileGreentegra Strategy About AES Gener

December 29, 2020

The Company requested the shutdown of Ventanas 1 and 2 as of today

Puchuncaví, December 29, 2020. In line with its mission of accelerating a safer and more sustainable energy future, AES Gener took a new step in its commitment to Chile’s decarbonization. Today the Company accelerated the retirement of 322 MW from its Ventanas coal-fired complex. The Company formally requested the shutdown of Units 1 and 2 of the complex as of today, December 29, 2020.

With this decision, AES Gener not only complies with the voluntary decarbonization agreement signed in June 2019 with the Government of Chile, but also accelerates the retirement of Ventanas 1 by almost two years and the retirement of Ventanas 2 by more than three years.

Both plants will go to a State of Strategic Reserve (ERE by its acronym in Spanish). They will be available as a backup to the grid if there is an energy crisis or an extraordinary situation that puts the security and sufficiency of the system at risk, in which case they could be called upon by the grid ISO, the Chilean National Electricity Coordinator (CEN by its acronym in Spanish).

Units 1 and 2 of Ventanas have a total capacity of 322 MW. With their retirement, approximately 2,000,000 tons of CO2 will be reduced, equivalent to removing more than 800 thousand cars from the streets of Chile.

This important milestone announced today is part of the Greentegra strategy carried out by AES Gener since 2018, with the purpose of accelerating the decarbonization of Chile and contribute to a responsible transition to ensure a safer and more sustainable energy future.

Ricardo Falú, AES Gener’s CEO, stated that these two units’ early retirement is one more example of the Company’s commitment to Chile. «The transformational strategy that AES Gener is executing includes not only the incorporation of renewable energy and emission-free capacity with battery solutions, but also responsibly accelerating the retirement of our thermoelectric plants. Our commitment to Chile is that none of our coal plants will operate a day longer than required by the national electricity system for its safety, economy and sufficiency«.

Meanwhile, the Minister of Mining and Energy, Juan Carlos Jobet, said, «we continue to advance in the plan to close coal-fired plants. Since it was announced in June 2019, we have accelerated the retirement of 6 coal-fired plants compared to their original date. Today we are taking another concrete step that will allow us to clean our generation matrix in a responsible way and replace it with clean energy for the good of Chileans and the planet».

He added that «clean energy that will replace coal will open up new opportunities for us: cleaner transportation, friendlier homes, cities with less pollution. They will also improve the competitiveness of key industries such as mining and agriculture, which will be increasingly green thanks to hydrogen. Chile is moving towards being a clean energy country«.

Julián Nebreda, President of the Strategic Unit of AES in South America and Chairman of the Board of AES Gener, said that «AES Gener and Chile are strategic for AES’s vision of the future of energy. The country has been an example of how it has faced the decarbonization process with the voluntary agreement that we signed more than a year ago and which has been an excellent framework to accelerate decarbonization in an orderly and efficient manner. At AES Corporation, we are committed to AES Gener and its Greentegra transformation process, and therefore we have approved to subscribe the capital increase of US $ 300 million recently announced by AES Gener».

Falú especially thanked the collaborators of Ventanas 1 and Ventanas 2. «You are part of the history of the plant and have always fulfilled the purpose of delivering reliable energy by putting safety first, applying the highest standards and working all together with communities, clients, and authorities. We are happy that many of you continue to accompany us in our renewable projects’ construction and operation. Those whom today chose to retire from their jobs, enjoy the well-deserved rest after so many years of work, contributions to the Company and to the country».

For further details please see the translation of the material fact filed today.

Greentegra Strategy

Within the framework of its transformational strategy, AES Gener will add 2,305 MW of wind, solar, hydroelectric, and battery capacity to its portfolio by 2023, of which 1,356 MW are already in operation or under construction.

The Company is contributing to the sustainable reactivation of the countries where it operates. Between 2019 and 2024, AES Gener will invest close to US$ 3,000 million in renewable projects that will generate more than 7,000 direct jobs with a focus on hiring women and local labor.

About AES Gener

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a safer and greener energy future. The Company operates a total installed capacity of 5,309MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the largest generator in Chile in 2020, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas, and coal-fired power plants.

AES Gener owns and operates 3,625MW in Chile, comprised of 3,068MW of thermoelectric, 271MW of hydroelectric, 110MW of wind, 102MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines, and gas pipelines. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a combined-cycle natural gas plant in Argentina with an installed capacity of 643 MW.