Energy technology company AES Corporation is still on track to reach its target of 4.5-5.5GW in long-term renewables and energy storage contracts in 2022, having already signed 1,618MW in the year to date, according the firm’s Q2 financial report.
The power purchase agreements (PPAs) inked so far this year were driven by 1,250MW of new contracts in the US. Meanwhile, the firm also signed 513MW globally in the second quarter.
AES has completed the construction or acquisition of 390MW of PV projects in the US and the Dominican Republic to date in 2022, bringing the company’s pipeline of projects to be completed to 10,468MW. These projects, of which 3,792MW are under construction and 6,676 MW have had PPAs signed but have yet to break ground, will be completed up to 2025.
“We do not expect any material delays on 5.9GW of backlog projects in the US as a result of supply chain issues,” said AES President and CEO Andrés Gluski. “With expected growth of more than 75% in our installed renewable capacity over the next four years, AES is well on its way to becoming a majority carbon free and majority US company by 2025.”
AES reported adjusted earnings of US$304 million or $0.34 per share for the second quarter of 2022, according the Q2 report. This was compared to US$303 million or US$.31 per share in the Q2 of the previous year.
The US-headquartered firm recorded a net loss of US$136 million in Q2, up from its loss of US$77 million last quarter, despite achieving higher revenues.
The company has also reaffirmed its 2022 adjusted EPS guidance range of US$1.55 to US$1.65 and continues to expect an annualised growth rate target of 7% to 9% through to 2025, with 2020 as the base year.
The company reported a Diluted EPS of -US$0.27 in Q2 2022, compared to US$0.03 in Q2 2021, reflected mainly by gains in 2021. These 2021 gains included the remeasurement of the firm’s interest in sPower’s development platform, Fluence’s new share issuance, and early contract terminations at Angamos, Chile.
In June 2022, AES formed the US Solar Buyer Consortium with three other leading solar companies to support domestic production of crystalline silicon modules in the US, by committing to buying 6-7GW of US-made PV modules every year.
Last year, AES added more than 2GW of renewables and energy storage to its portfolio. More than half of this capacity was deployed in the US, with the remainder across Latin America.
And last December, AES also launched a “first-of-its-kind” artificially intelligent (AI) robot to improve the speed, efficiency and safety in construction of new solar projects. The robot, dubbed Atlas, was built in cooperation with Calvary Robotics.