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AES Inks Deal to Retire 1 GW Coal Generation Plant in Chile
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The AES Corporation (AES - Free Report) inked a deal to voluntarily retire its 1,097-megawatt (MW) coal-generation facility by January 2025, which represents nearly 20% of Chile’s installed coal capacity. This is the single largest coal retirement announcement by any power company in the country.
This decision complements the utility’s plans to invest $3 billion in building a 2.3-gigawatt (GW) renewable and energy storage facility through 2024, one each in Chile and Colombia. The ultimate aim of both is to reduce emission from electricity generation process. Closure of the coal unit will cut nearly six million tons of carbon dioxide from the atmosphere, in line with AES Corp.'s strategic decarbonization plan.
Renewables and Emission Reduction
AES Corp. announced the sale or retirement of 12 GW worth coal capacity around the world. This March, it notified its near and long-term emission reduction goals. By 2025, the company expects more than 50% of its earnings to come from the United States and above 65% to be derived from renewables and its U.S. utilities. Furthermore, it accelerated its efforts to reduce electricity generation from coal to below 10% by 2025 end and set a new target of achieving sales with portfolio-wide net-zero carbon emissions from electricity by 2040.
The company is rapidly expanding its renewable footprint, both on the domestic front and in the overseas markets. AES Corp.’s 531 MW Alto Maipo hydroelectric projects in Chile are almost near completion. On conclusion, this hydroelectric plant will substantially boost the company’s renewable portfolio.
The company has a backlog of 6,926 MW of renewables, of which 2,570 MW is under construction and expected to come online through 2024; 4,356 MW is signed under long-term PPAs and also includes a 10-year agreement to supply Google's data centers in Virginia with 500 MW of 24/7 carbon-free energy. AES Corp. reduced its coal-fired generation to 25% of the total volumes generated as of Dec 31, 2020. Apart from the company, utilities like Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Avista Corporation (AVA - Free Report) made plans to curb carbon footprint for a pollution-free environment.
In the past month, shares of the company have gained 2.7% against the industry’s fall of 6.8%.
One-Month Price Performance
Image Source: Zacks Investment Research
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
AES Inks Deal to Retire 1 GW Coal Generation Plant in Chile
The AES Corporation (AES - Free Report) inked a deal to voluntarily retire its 1,097-megawatt (MW) coal-generation facility by January 2025, which represents nearly 20% of Chile’s installed coal capacity. This is the single largest coal retirement announcement by any power company in the country.
This decision complements the utility’s plans to invest $3 billion in building a 2.3-gigawatt (GW) renewable and energy storage facility through 2024, one each in Chile and Colombia. The ultimate aim of both is to reduce emission from electricity generation process. Closure of the coal unit will cut nearly six million tons of carbon dioxide from the atmosphere, in line with AES Corp.'s strategic decarbonization plan.
Renewables and Emission Reduction
AES Corp. announced the sale or retirement of 12 GW worth coal capacity around the world. This March, it notified its near and long-term emission reduction goals. By 2025, the company expects more than 50% of its earnings to come from the United States and above 65% to be derived from renewables and its U.S. utilities. Furthermore, it accelerated its efforts to reduce electricity generation from coal to below 10% by 2025 end and set a new target of achieving sales with portfolio-wide net-zero carbon emissions from electricity by 2040.
The company is rapidly expanding its renewable footprint, both on the domestic front and in the overseas markets. AES Corp.’s 531 MW Alto Maipo hydroelectric projects in Chile are almost near completion. On conclusion, this hydroelectric plant will substantially boost the company’s renewable portfolio.
The company has a backlog of 6,926 MW of renewables, of which 2,570 MW is under construction and expected to come online through 2024; 4,356 MW is signed under long-term PPAs and also includes a 10-year agreement to supply Google's data centers in Virginia with 500 MW of 24/7 carbon-free energy. AES Corp. reduced its coal-fired generation to 25% of the total volumes generated as of Dec 31, 2020. Apart from the company, utilities like Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Avista Corporation (AVA - Free Report) made plans to curb carbon footprint for a pollution-free environment.
Zacks Rank & Price Performance
The stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past month, shares of the company have gained 2.7% against the industry’s fall of 6.8%.
One-Month Price Performance
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>