AES to Triple Renewable Capacity by 2027, Grow U.S. Utility Role

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Researched by Industrial Info Resources (Sugar Land, Texas)--AES Corporation (NYSE:AES) (Arlington County, Virginia) plans to triple its capacity of renewable energy through 2027 by adding 25 to 30 gigawatts (GW) of solar, wind and battery energy-storage systems (BESS), while pursuing newer energy technologies like green hydrogen. The company also plans to grow its rate base at U.S. utilities 10% annually in the same time frame. Industrial Info is tracking $32.75 billion worth of active projects from AES worldwide, nearly 70% of which is attributed to renewable-energy development; solar accounts for nearly half of its $15 billion in U.S.-based projects.

Click on the image at right for a graph detailing the top 10 U.S. states for AES project investments, according to Industrial Info's project database.

AES renewed its commitment to the U.S. solar market last June, when it joined Clearway Energy Group (NYSE:CWEN) (Princeton, New Jersey), Cypress Creek Renewables LLC (Santa Monica, California) and D.E. Shaw Group (New York, New York) to form the U.S. Solar Buyer Consortium, which intends to purchase 6 to 7 GW worth of crystalline silicon solar modules annually, in part to boost U.S. domestic solar manufacturing. AES has more than $1.2 billion worth of U.S.-based solar projects that are set to finish construction before the end of 2023.

AES began construction on its $250 million MacFarland Solar Station in Dateland, Arizona, toward the end of 2021, and started work on its $190 million Hardy Hills Solar Plant near Frankfort, Indiana, and its $85 million Great Cove Solar Plant in Needmore, Pennsylvania, the following summer. All three are expected to finish construction later this year, with capacities of 250 megawatts (MW), 195 MW and 70 MW, respectively, produced via photovoltaic (PV) panels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the MacFarland, Hardy Hills and Great Cove projects.

Solar projects set to wrap up in 2024 include the $218 million Cavalier Solar Plant and its $93 million addition in Smithfield, Virginia, both of which began construction in April, and the $81 million Platteview Solar Plant near Yutan, Nebraska, which began construction in March. The PV-based projects are expected to generate 168 MW, 72 MW and 81 MW, respectively. Subscribers can read detailed reports on the Cavalier I, Cavalier II and Platteview projects.

On the wind-energy side, AES recently finished construction on the 239.4-MW, $590 million Chevelon Butte Windfarm near Winslow, Arizona, and is preparing to begin construction on the 239-MW, $260 million second phase later this year. The company also recently started site preparation for its $200 million Delta Windfarm in Tunica, Mississippi, expected to generate 200 MW. All three projects use wind turbines provided by Vestas Wind Systems A/S (Aarhus, Denmark). Subscribers can read detailed reports on the Chevelon Butte I, Chevelon Butte II and Delta projects.

"Growth [through 2027] is expected to be primarily driven by contributions from new renewables expected to come online and investments in the rate base at the company's Utilities Strategic Business Unit (SBU)," AES said in a press release. "This growth is expected to be partially offset by lower contributions from the Energy Infrastructure SBU, as the company intends to exit coal by year-end 2025, [as well as] asset sales, and higher parent [company] interest."

Projects at coal-fired plants account for less than 0.4% of AES' active investments globally, and a little more than 0.6% of its U.S.-based investments, according to Industrial Info's GMI Power Project Database.

Subscribers to Industrial Info's GMI Project Database 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 AES projects worldwide, and click here for a full list of reports for active AES 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).