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Released May 21, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. power demand is expected to increase significantly over the next decade, fueled by the growing markets for electric vehicles (EVs) and data centers, and AES Corporation (NYSE:AES) (Arlington, Virginia) believes it can meet a significant share of the challenge through wind, solar and battery energy-storage system (BESS) projects that will cater to high-demand areas, or even individual facilities. Industrial Info is tracking more than $27 billion worth of projects from AES in the U.S. and Canada, including more than $4.6 billion worth nearing or under construction.
Click on the image at right for a graph detailing active and planned projects from AES in the U.S. and Canada, by project type.
"Looking at 2024 as an example, 95% of the capacity additions in the U.S. are expected to come from solar-energy storage and wind," said Andres Gluski, the chief executive officer of AES, in a quarterly earnings-related conference call. "A major part of this growth is coming from energy storage, whose installed capacity is expected to double by the end of the year. Given our role in creating and first commercializing grid-scale lithium-ion-based energy storage, it fills me with great satisfaction to see that the two largest economies in the country, California and Texas, now get more than 10% of their dispatchable capacity from batteries. We are now even seeing periods of the day in California when energy storage is the single largest source of power on the grid."
California is home to one of the largest AES projects under construction: the Bellefield Solar Plant in California City, California, about 70 miles north of Los Angeles. It comprises a $530 million first phase and a $500 million second phase, each of which is expected to generate 500 megawatts (MW) from photovoltaic (PV) panels; both began construction last June, and they are expected to wrap up in the third and fourth quarters of 2025, respectively.
AES recently signed a 15-year contract with Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) for the second phase of the Bellefield project; along with the first phase, which was contracted in 2023, Bellefield will provide 2 gigawatts (GW) of combined solar and storage for Amazon. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can learn more from detailed project reports on Phase I and Phase II, and a detailed plant profile.
"With this project, we now have nearly 6 gigawatts of long-term contracts directly with technology companies, making AES among the largest energy providers to data centers," Gluski said.
In Texas, AES is planning the multi-phase Felix green hydrogen complex in Wilbarger and Baylor counties, with Air Products and Chemicals Incorporated (NYSE:APD) (Lehigh Valley, Pennsylvania). The companies are seeking permits to invest more than $4 billion in the mega-scale project, which would use 1.4 GW of wind and solar power generation, along with electrolyzer capacity, to produce more than 200 metric tons per day of "green" hydrogen.
Currently, the solar components of the Felix project are to be built in Wilbarger County and the wind components about 40 miles south in Baylor County. The renewable-generation components include:
Air Products' heaviest investments across the U.S. and Canada are geared toward "blue" and "green" hydrogen-production projects, with "blue" facilities designed to produce hydrogen with natural gas using carbon-capture and storage (CCS) technology. For more information, see February 6, 2024, article - Air Products Pushes for Global Blue, Green Hydrogen Growth.
During the first quarter, AES completed construction on the Chevelon Butte Windfarm in Winslow, Arizona, which now is the largest wind project in the state at 478 MW of output. AES also is nearing completion on its $950 million MacFarland Solar Plant in Dateland, Arizona, which is expected to generate 450 MW from panels provided by First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona). Subscribers can read a detailed report on the MacFarland project and a profile of the Chevelon Butte Windfarm.
Last week, AES announced it would offer fixed-to-fixed rate reset junior subordinated "green notes" in a registered public offering. The company says it will "allocate an amount equal to the net proceeds from this offering to one or more eligible green projects, which may include the development or redevelopment of such projects. Pending such allocation, AES intends to use the net proceeds from the proposed offering for general corporate purposes."
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 reports for active and planned projects across the U.S. and Canada from AES.
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 planned projects from AES in the U.S. and Canada, by project type."Looking at 2024 as an example, 95% of the capacity additions in the U.S. are expected to come from solar-energy storage and wind," said Andres Gluski, the chief executive officer of AES, in a quarterly earnings-related conference call. "A major part of this growth is coming from energy storage, whose installed capacity is expected to double by the end of the year. Given our role in creating and first commercializing grid-scale lithium-ion-based energy storage, it fills me with great satisfaction to see that the two largest economies in the country, California and Texas, now get more than 10% of their dispatchable capacity from batteries. We are now even seeing periods of the day in California when energy storage is the single largest source of power on the grid."
California is home to one of the largest AES projects under construction: the Bellefield Solar Plant in California City, California, about 70 miles north of Los Angeles. It comprises a $530 million first phase and a $500 million second phase, each of which is expected to generate 500 megawatts (MW) from photovoltaic (PV) panels; both began construction last June, and they are expected to wrap up in the third and fourth quarters of 2025, respectively.
AES recently signed a 15-year contract with Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) for the second phase of the Bellefield project; along with the first phase, which was contracted in 2023, Bellefield will provide 2 gigawatts (GW) of combined solar and storage for Amazon. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can learn more from detailed project reports on Phase I and Phase II, and a detailed plant profile.
"With this project, we now have nearly 6 gigawatts of long-term contracts directly with technology companies, making AES among the largest energy providers to data centers," Gluski said.
In Texas, AES is planning the multi-phase Felix green hydrogen complex in Wilbarger and Baylor counties, with Air Products and Chemicals Incorporated (NYSE:APD) (Lehigh Valley, Pennsylvania). The companies are seeking permits to invest more than $4 billion in the mega-scale project, which would use 1.4 GW of wind and solar power generation, along with electrolyzer capacity, to produce more than 200 metric tons per day of "green" hydrogen.
Currently, the solar components of the Felix project are to be built in Wilbarger County and the wind components about 40 miles south in Baylor County. The renewable-generation components include:
- the 301-MW Felix East Solar Farm, which will include a 100-MW BESS; see project report
- the 307-MW Felix North Solar Farm, which will include a 150-MW BESS; see project report
- the 200-MW Felix West Solar Farm; see project report
- the 787.5-MW Felix 2 Windfarm; see project report
- the 504-MW Felix 2 Windfarm addition; see project report
Air Products' heaviest investments across the U.S. and Canada are geared toward "blue" and "green" hydrogen-production projects, with "blue" facilities designed to produce hydrogen with natural gas using carbon-capture and storage (CCS) technology. For more information, see February 6, 2024, article - Air Products Pushes for Global Blue, Green Hydrogen Growth.
During the first quarter, AES completed construction on the Chevelon Butte Windfarm in Winslow, Arizona, which now is the largest wind project in the state at 478 MW of output. AES also is nearing completion on its $950 million MacFarland Solar Plant in Dateland, Arizona, which is expected to generate 450 MW from panels provided by First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona). Subscribers can read a detailed report on the MacFarland project and a profile of the Chevelon Butte Windfarm.
Last week, AES announced it would offer fixed-to-fixed rate reset junior subordinated "green notes" in a registered public offering. The company says it will "allocate an amount equal to the net proceeds from this offering to one or more eligible green projects, which may include the development or redevelopment of such projects. Pending such allocation, AES intends to use the net proceeds from the proposed offering for general corporate purposes."
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 reports for active and planned projects across the U.S. and Canada from AES.
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).
