AES looks to exit coal by year-end 2025, affirms growth rate target

AES Corp., through a combination of asset sales, fuel conversions and retirements, is looking accelerate its exit from coal by year-end 2025, the company announced Feb. 24.

The company previously planned to cut its generation from coal to less than 10% of total generation by year-end 2025, AES said in its earnings release for the fourth quarter of 2021. AES intends to exit coal while maintaining "reliability and affordability," and the move is subject to necessary approvals.

AES said it has 7.1 GW of coal generation in operation.

The power generator has about 1,700 MW of coal-fired generating capacity in the United States, according to S&P Global Market Intelligence data. The company has a 1,241-MW share of its largest coal-fired facility, the Petersburg plant in Pike County, Ind. The 180-MW Warrior Run Cogeneration facility, built in 2000 in Allegany County, Md., is its most recently built.

AES reaffirmed its 7% to 9% annual growth rate target through 2025 from the base year of 2020. The rate includes the impact of the company's accelerated exit from coal but is expected to be "largely offset" by increased contributions from higher ownership of AES Andes SA and continuing growth in renewables, the company said.

AES Andes has 4.4 GW in operation throughout Chile, Colombia and Argentina with an additional 1.1 GW under construction. AES said in mid-January that it was set to increase its stake in AES Andes to 98.13% from 66.98% following the positive results of a tender offer for shares held by minority shareholders.