AES Acquires Largest Permitted Solar-Plus-Storage Project in the United States

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Jun 07, 2023, 06:20 ET

Strengthens Position as a Leader in Providing Renewable Energy to Corporate Customers

ARLINGTON, Va., June 7, 2023 /PRNewswire/ -- The AES Corporation (NYSE: AES) today announced the acquisition of the 2 GW Bellefield project, which is currently in late-stage development, and is the largest permitted solar-plus-storage project in the United States. The project, located in Kern County, California, where AES¹ already has significant operations, includes two phases, each with 500 MW of solar and up to 500 MW of four-hour duration battery energy storage. The project represents a significant step in accelerating California's commitment to achieving 100% carbon-free energy by 2045. This acquisition strengthens AES' position as a leader in providing renewable energy solutions to corporate customers under long-term contracts.

Phase one of the Bellefield project has a 15-year Power Purchase Agreement (PPA) to deliver hourly, carbon-free energy to an existing AES corporate customer. AES expects to contract up to an additional 1 GW of solar-plus-storage in phase two of the Bellefield project by the end of 2023. The two phases of the project were developed by the seller, Avantus, and are expected to come online in 2025 and 2026, respectively.

"This significant acquisition accelerates AES' deployment of unique renewable energy solutions to our key corporate clients in the California market," said Andrés Gluski, AES President and Chief Executive Officer. "With the addition of Bellefield phase one, our signed PPA backlog grows to more than 12 GW, which represents growth of more than 80% from our current installed renewable generation fleet. The vast majority of this backlog is expected to come online over the next two years, consolidating AES' position as one of the fastest growing renewables companies and a global leader in supplying clean energy to corporate customers."

AES has been recognized by Bloomberg New Energy Finance (BNEF) as the top developer selling clean energy to corporations through PPAs in 2021 and 2022.

Over the last decade, AES has rapidly grown its portfolio of renewable energy projects, including 15 GW of installed capacity, a 12 GW backlog of projects with signed long-term contracts (including the first phase of the Bellefield project), and a global pipeline of 61 GW.

¹ Alberta Investment Management Corporation (AIMCo) is an investor in AES' clean energy business in the US with 25% ownership of the business' growth projects.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global power 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. For more information, visit www.aes.com.

About Alberta Investment Management Corporation

Alberta Investment Management Corporation, AIMCo, is one of Canada's largest and most diversified institutional investment managers with CAD $168.3 billion of assets under management, as of December 31, 2021. AIMCo invests globally on behalf of 32 pension, endowment and government funds in the Province of Alberta.

AIMCo's Infrastructure group manages a portfolio of over CAD $14 billion in investments, comprised primarily of long-term equity positions in OECD-based infrastructure assets. These assets typically provide essential services to the public and are either regulated or have highly contracted revenues with the potential for long-term capital appreciation. AIMCo infrastructure investments are intended to match long duration real return asset characteristics with inflation-indexed pension liabilities.

AES 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 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, rates of return consistent with prior experience and the COVID-19 pandemic.

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' 2022 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, except where required by law.

Any Stockholder who desires a copy of the Company's 2022 Annual Report on Form 10-K filed March 1, 2023 with the SEC may obtain a copy (excluding the exhibits thereto) 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. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company's website at www.aes.com.

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Investor Contact: Susan Harcourt 703-682-1204, [email protected]
Media Contact: Stephanie Cathcart 571-294-6824, [email protected]

SOURCE AES CORP.