AES Andes requests to advance the final decommissioning of its Norgener power plant to 2024.

December 7, 2023

Committed to ongoing progress in the process of decarbonizing the country's energy matrix and in line with its Greentegra transformational strategy, the Board of Directors of AES Andes has today approved a request for the early and definitive shutdown of the two units of the Norgener power plant in Tocopilla.

The company has requested the National Energy Commission to waive the 24-month deadline to report the withdrawal, disconnection and cessation of operations of the Norgener plant (276 MW) to bring forward the date as of March 31, 2024. The company is evaluating options for the reconversion of the plant, including the potential participation in the tender for Complementary Services for Voltage Control, conducted by the National Electric Coordinator (CEN).

It should be noted that last May, AES Andes informed the National Energy Commission of the disconnection of the two units of Norgener plant as of December 31, 2025.

With its withdrawal, almost two years earlier than initially requested, the company will have withdrawn 598 MW of its coal-fired operation from the system by the first quarter of 2024. Additionally, it will have contributed an extra 1,095 MW to the system by 2025.

Javier Dib, the CEO of AES Andes, stated that "the resolution made by the company's board of directors is rooted in the pledge to withdraw its coal-fired units once they are no longer necessary for the security of the National Electric System, and in the need to allocate its resources to the assets that will be crucial for the energy transition. We continue to advance in our strategy, with the development and construction of our renewable projects and storage systems, which will allow us to accelerate the future of energy."

"We continue to seek innovative solutions for the reconversion of these assets, which is why we are considering our involvement in the next Complementary Services bidding process conducted by CEN," Dib emphasized.

The executive also appreciated "the contribution of these assets to the growth and development of the country and primarily the commitment and daily efforts of our collaborators during all these years."

AES Andes has demonstrated tangible commitment to the country’s ongoing decarbonization process with the aim of combating climate change, working together with customers to seek 100% renewable and competitive solutions for their operations, and significantly contributing to  the country's electrical system.

Before launching its Greentegra strategy in 2018, the company and its subsidiaries have announced definitive plans to withdraw 82% of the coal-fired capacity from their existing portfolio. AES Andes continues with its investment program, which exceeds US$ 3 billion, dedicated to its mission of collectively accelerating the future of energy together and progressing in its transformation by withdrawing its coal-fired operation, implementing labor retraining programs for its employees, and constructing and developing new renewable projects, including storage technologies.

 

About AES Andes

AES Andes generates and sells electricity in Chile, Colombia and Argentina. The Company operates 5,636 MW in South America has a broad renewable energy project pipeline under development. The Company is one of the leading generators in the region with a diversified portfolio that includes hydro, wind, solar, energy storage, biomass, natural gas and coal plants.

In Chile, AES Andes and its subsidiaries own and operate 3,913 MW generation capacity, including 2,129 MW of thermal, 771 MW of hydroelectric, 348 MW of wind, 429 MW of solar, 13 MW of biomass, and 223 MW of battery-based energy storage systems, as well as seawater desalination plants, and transmission lines.