AES aims to triple its renewables capacity by adding 25-30GW of solar, wind and energy storage by 2027 as part of its new long-term growth strategy.
Renewable energy will also be a key driver of growth over the next four years, according to its strategy.
In addition, the company intends to exit coal operations by the end of 2025.
As part of its strategy, the company said it will invest to deliver a 10% annual rate base growth in its US utilities.
Financially, AES has initiated an annualised growth target for Adjusted Earnings Per Share (Adjusted EPS) of 6-8% through 2027, from a base of its reaffirmed 2023 guidance of $1.65 to $1.75.
Growth 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).
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, asset sales, and higher parent interest.
The company is reaffirming its annualised growth target for Adjusted EPS of 7-9% annualised growth target through 2025, from a base year of 2020.
The company is also initiating a 2023 adjusted EBITDA guidance of $2.6bn to $2.9bn.
Growth in 2023 is expected to be primarily driven by contributions from new renewables projects coming online, as well as prior-year one-time expenses at the company’s US utilities.
Annualised growth in adjusted EBITDA is expected to be 3-5% through 2027, from a base of 2023 guidance.
This growth 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 SBU, partially offset by asset sales and lower contributions from the energy infrastructure SBU.
“AES is uniquely positioned to create value for our shareholders in the once in a lifetime energy transition we are currently living through,” said Andres Gluski, AES President and CEO.