AES raises 2021 target for renewables signed under PPAs to 5 GW

AES Corp (NYSE:AES) projects to sign 5 GW of renewables under long-term power purchase agreements (PPAs) in 2021, an increase from its previous target of 4 GW, the US power generation group said on Wednesday as it released third-quarter results.

The company has already signed or agreed to acquire 4 GW of renewables and energy storage under long-term PPAs since the start of the year. This takes its backlog to more than 9.2 GW, which is expected to be up and running through 2024. The backlog is the highest in the company’s history, with 60% of it in the US, said AES president and chief executive Andres Gluski. The new full-year target of 5 GW represents an increase of 66% compared to 2020.

Since the second-quarter report in August, AES has signed 1,088 MW of renewables and energy storage under long-term PPAs, almost entirely at AES Clean Energy in the US.

So far 2021, it has finalsied construction or the acquisition of 643 MW of renewables, including 344 MW of solar and solar plus storage in the US, as well as 159 MW of wind in Brazil and solar facilities in Colombia and the Dominican Republic.

AES chief financial officer Stephen Coughlin said the company is making progress in advancing the growth of AES Clean Energy and its technology businesses. Fluence Energy Inc (NASDAQ:FLNC), its energy storage joint venture with Siemens AG (ETR:SIE), completed its initial public offering (IPO) this month, with AES now holding about 34% in the business.

The company confirmed its 2021 adjusted earnings per share forecast of USD 1.50 to USD 1.58 but now expects to be at the low end of the range due to a non-cash adjustment stemming from an updated interpretation of accounting literature.

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