AES to close 1.1GW of coal in Chile amidst renewables shift

Facebook
Twitter
LinkedIn
Reddit
Email
The agreement with the Chilean government forms part of AES’s decarbonisation and renewable energy strategy. Image: AES Corportation

Power generation and distribution company AES has signed an agreement with the Chilean government to close 1.1GW of its coal power generation in the country as soon as 2025.

Accounting for roughly 20% of Chile’s installed coal capacity, the agreement represents the “single largest coal retirement announcement by any power company in Chile”, according to AES.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Under the plan, AES could retire the plants by January 2025, although this is subject to the requirements of Chile’s power grid.

The announcement is part of AES’s decarbonisation strategy, which involves the sale and retirement of coal assets combined with increased deployment of renewables. It has plans to invest US$3 billion to build 2.3GW of renewables and storage in Chile and Colombia through 2024.

“AES Andes is a great example of how we have committed to responsibly decarbonize the Chilean electricity sector,” said Andrés Gluski, AES president and CEO.

Globally, the company has already announced the sale or retirement of nearly 12GW of coal capacity. It has reaffirmed its 7%-9% average annual growth rate target through 2025, from a base year of 2020.  

The Chilean government was represented by the country’s president Sebastián Piñera, Juan Carlos Jobet, minister of mines and energy and Carolina Schmidt, minister of the environment.

Read Next

October 6, 2025
US utility AES Corporation is reportedly in discussions to be acquired by Global Infrastructure Partners (GIP), a subsidiary of global asset owning giant BlackRock.
September 29, 2025
Australia's CER has disclosed that 1.5GW of new renewable energy capacity in the NEM received authorisation in the second quarter of 2025.
September 23, 2025
Australia’s NEM set a new instantaneous renewables share record of 78.6% on 22 September, surpassing the previous day's record of 77.9%.
September 2, 2025
Spanish construction firm GES (Global Energy Services) has secured a contract to build a roughly 700MW solar-wind-storage hybrid project in Chile.
September 2, 2025
Spanish independent power producer (IPP) Grenergy has sold the fourth phase of its flagship solar-plus-storage project in Chile, Oasis de Atacama.
August 31, 2025
Renewables developer and independent power producer (IPP) TagEnergy has acquired Australian developer ACE Power, adding 6GW of renewable energy and storage projects to its portfolio.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA
Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland