AES Announces Ambitious Plans to Triple Renewable Energy Capacity by 2027

AES, a global power company, has unveiled its new long-term growth strategy, which includes ambitious targets for renewable energy expansion, coal exit plans, and financial goals. The company aims to triple its renewables capacity by adding 25-30GW of solar, wind, and energy storage by 2027, making renewable energy a key driver of growth in the coming years. As part of its new strategy, AES will invest in delivering a 10% annual rate base growth in its US utilities, while also initiating an annualised growth target for Adjusted Earnings Per Share (Adjusted EPS) of 6-8% through 2027. The company is reaffirming its annualised growth target for Adjusted EPS of 7-9% through 2025. AES plans to exit coal operations by the end of 2025, as it focuses on new renewables projects and investments in the rate base at the company's utilities Strategic Business Unit (SBU). This growth is expected to be partially offset by lower contributions from the Energy Infrastructure SBU, asset sales, and higher parent interest. The company is also initiating a 2023 adjusted EBITDA guidance of $2.6bn to $2.9bn, with growth primarily driven by contributions from new renewables projects coming online and prior-year one-time expenses at the company's US utilities. Annualised growth in adjusted EBITDA is expected to be 3-5% through 2027. "Andres Gluski, AES President and CEO, said, "AES is uniquely positioned to create value for our shareholders in the once in a lifetime energy transition we are currently living through." AES's new growth strategy underscores the company's commitment to renewable energy and sustainable practices, while also setting ambitious targets for financial growth and stability. As the world transitions to cleaner energy, AES is well-positioned to lead the charge and create value for its shareholders in the years ahead.