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Released March 04, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Power-generation developer AES Corporation (NYSE:AES) (Arlington, Virginia) is renewing its commitment to build out its 12-gigawatt (GW) renewable-project pipeline, 85% of which it expects to be online by 2027, while bolstering its liquefied natural gas (LNG) development in Central America and holding off on the expected closure of some coal-fired power plants. Industrial Info is tracking more than $45 billion worth of active and proposed projects globally from AES, about $26 billion of which is located within the U.S.
Click on the image at right for a graph detailing active and proposed projects within the U.S. from AES, by project type.
AES plans to invest about $1.8 billion in new growth projects in 2025, more than 85% of which will be in the U.S. In a recent quarterly earnings-related conference call, several AES executives said the company achieved significant cost savings during 2024 by resizing its development program to focus on fulfilling its backlog and pursuing fewer--but larger--projects oriented to core customers. Andres Gluski, the chief executive officer, said that while AES now operates in fewer countries, its portfolio consists of more than 50% renewable-energy developments and is concentrated on the U.S.
"Looking beyond this year, these savings, which increase to a run rate of over $300 million in 2026, combined with continued growth in renewables and utilities, will accelerate the growth trajectory of AES," said Steve Coughlin, the chief financial officer of AES, in the earnings call.
Among the renewable-energy projects to begin construction recently is the $630 million West Camp Wind project in Joseph City, Arizona, about 80 miles east of Flagstaff, which comprises a 401-megawatt (MW) windfarm and a 250-MW, co-located battery energy-storage system (BESS). The project is expected to utilize V150-model turbines from Vestas Wind Systems A/S (Copenhagen, Denmark). Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can learn more from a detailed project report and plant profile.
AES also has several solar-energy projects under construction, at least two of which are slated to wrap up this year: the $306 million Morris Solar Plant in Kirksville, Missouri, which will generate 250 MW from monocrystalline photovoltaic (PV) solar panels, and the $120 million Halifax County facility in Enfield, North Carolina, which will generate 80 MW from PV panels. Subscribers can read detailed reports on the Morris and Halifax County projects.
"2025 is an inflection point for our business," Coughlin said in the earnings call. "The renewables segment will increase over 60% [in adjusted earnings] in 2025, and it will yield annual growth at least in line with our 19% to 21% guidance through 2027. Utilities rate-based growth is even stronger than previously expected, while energy infrastructure continues to contribute meaningfully to [adjusted earnings] and cash. We have taken actions to streamline our organization and reduce both costs and capital investments."
Fossil Fuels Stay Put in Portfolio
Despite its optimism on renewable energy, AES is not ignoring the rising demand for fossil fuel-sourced energy. During the fourth quarter of 2024, AES completed its construction of a 670-MW, natural gas-fired, combined-cycle power plant at the Costa Norte LNG Terminal in Colón, Panama, "which will result in much greater utilization of our existing LNG regasification in the country," Gluski said in the earnings call. "In addition, we are delaying the closure or sale of a few of our coal plants, as a result of increased demand in those markets."
AES obtained full ownership of its Costa Norte LNG import terminal in 2021, after owning a 50.1% stake since the terminal came online in 2018. It was Panama's first LNG terminal. Subscribers can learn more about Costa Norte LNG in a detailed plant profile.
Gluski said some of the company's coal-fired power-generation assets--most of which are found outside the U.S.-- would be retained "beyond 2027, to support our financial metrics and fund new projects." AES is proposing to convert its coal-fired power plant in Petersburg, Indiana, to use natural gas; despite some pushback from state lawmakers, AES received approval in November from the Indiana Utility Regulatory Commission (IURC) for the conversion. Subscribers can learn more from a detailed project report and plant profile.
Subscribers can click here for a full list of detailed profiles for operational coal-fired plants from AES worldwide.
"We still remain committed, nonetheless, to a full exit from coal generation and will continue to rapidly lower our carbon intensity and minimize carbon emissions from our generation fleet," Gluski said.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and proposed projects worldwide from AES, and click here for a full list of reports for projects in the U.S.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing active and proposed projects within the U.S. from AES, by project type.AES plans to invest about $1.8 billion in new growth projects in 2025, more than 85% of which will be in the U.S. In a recent quarterly earnings-related conference call, several AES executives said the company achieved significant cost savings during 2024 by resizing its development program to focus on fulfilling its backlog and pursuing fewer--but larger--projects oriented to core customers. Andres Gluski, the chief executive officer, said that while AES now operates in fewer countries, its portfolio consists of more than 50% renewable-energy developments and is concentrated on the U.S.
"Looking beyond this year, these savings, which increase to a run rate of over $300 million in 2026, combined with continued growth in renewables and utilities, will accelerate the growth trajectory of AES," said Steve Coughlin, the chief financial officer of AES, in the earnings call.
Among the renewable-energy projects to begin construction recently is the $630 million West Camp Wind project in Joseph City, Arizona, about 80 miles east of Flagstaff, which comprises a 401-megawatt (MW) windfarm and a 250-MW, co-located battery energy-storage system (BESS). The project is expected to utilize V150-model turbines from Vestas Wind Systems A/S (Copenhagen, Denmark). Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can learn more from a detailed project report and plant profile.
AES also has several solar-energy projects under construction, at least two of which are slated to wrap up this year: the $306 million Morris Solar Plant in Kirksville, Missouri, which will generate 250 MW from monocrystalline photovoltaic (PV) solar panels, and the $120 million Halifax County facility in Enfield, North Carolina, which will generate 80 MW from PV panels. Subscribers can read detailed reports on the Morris and Halifax County projects.
"2025 is an inflection point for our business," Coughlin said in the earnings call. "The renewables segment will increase over 60% [in adjusted earnings] in 2025, and it will yield annual growth at least in line with our 19% to 21% guidance through 2027. Utilities rate-based growth is even stronger than previously expected, while energy infrastructure continues to contribute meaningfully to [adjusted earnings] and cash. We have taken actions to streamline our organization and reduce both costs and capital investments."
Fossil Fuels Stay Put in Portfolio
Despite its optimism on renewable energy, AES is not ignoring the rising demand for fossil fuel-sourced energy. During the fourth quarter of 2024, AES completed its construction of a 670-MW, natural gas-fired, combined-cycle power plant at the Costa Norte LNG Terminal in Colón, Panama, "which will result in much greater utilization of our existing LNG regasification in the country," Gluski said in the earnings call. "In addition, we are delaying the closure or sale of a few of our coal plants, as a result of increased demand in those markets."
AES obtained full ownership of its Costa Norte LNG import terminal in 2021, after owning a 50.1% stake since the terminal came online in 2018. It was Panama's first LNG terminal. Subscribers can learn more about Costa Norte LNG in a detailed plant profile.
Gluski said some of the company's coal-fired power-generation assets--most of which are found outside the U.S.-- would be retained "beyond 2027, to support our financial metrics and fund new projects." AES is proposing to convert its coal-fired power plant in Petersburg, Indiana, to use natural gas; despite some pushback from state lawmakers, AES received approval in November from the Indiana Utility Regulatory Commission (IURC) for the conversion. Subscribers can learn more from a detailed project report and plant profile.
Subscribers can click here for a full list of detailed profiles for operational coal-fired plants from AES worldwide.
"We still remain committed, nonetheless, to a full exit from coal generation and will continue to rapidly lower our carbon intensity and minimize carbon emissions from our generation fleet," Gluski said.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and proposed projects worldwide from AES, and click here for a full list of reports for projects in the U.S.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
