AES Corporation explained

The AES Corporation
Former Name:Applied Energy Services, Inc. (1981–2000)
Type:Public
Hq Location:Arlington, Virginia, U.S.
Area Served:Worldwide
Key People:Jay Morse (chairman)
Andres Gluski (president & CEO)
Industry:Energy
Products:Electricity
Net Income: US$249 million (2023)
Assets: US$44.8 billion (2023)
Equity: US$2.49 billion (2023)
Num Employees: (2023)
Footnotes:[1]

The AES Corporation is an American utility and power generation company. It owns and operates power plants, which it uses to generate and sell electricity to end users and intermediaries like utilities and industrial facilities. AES, headquartered in Arlington, Virginia, is one of the world's leading power companies, generating and distributing electric power in 15 countries[2] and employing 10,500 people worldwide. AES Corporation is a global Fortune 500 power company.[3] AES Ranks in the Top Ten of Fast Company's 2022 Best Workplaces for Innovators.[4]

History

The company was founded on January 28, 1981, as Applied Energy Services[5] by Roger Sant and Dennis Bakke, two appointees of the Federal Energy Administration under president Richard Nixon. The company was initially a consulting firm; it became AES Corporation, which went public in 1991. Sant was chairman, CEO, and president and Bakke was executive vice president until assuming the position of president in 1987. Bakke later became the company's CEO in 1994, serving for eight years until his resignation in 2002 in the midst of a liquidity crisis that followed the collapse of the energy giant Enron.[6] [7] Sant remained as executive chairman until 2003 and as a member of the board until 2006. Paul Hanrahan was appointed President and CEO and remained for ten years, overseeing the stabilization of the company. Until the early 2000's, the company followed self-management, delegating much responsibility to ordinary employees.[8] In 2012, Hanrahan resigned his position as president and CEO of the company, and he was succeeded by Andres Gluski. As CEO, Gluski has implemented a strategy of reducing the number of countries in which AES does business, from 28 to 16, for the purpose of consolidating operations and reducing costs. Additionally, he began a program of reducing the company's total carbon emission intensity.

Bakke and Sant oversaw much of AES's initial global expansion, building power plants in 29 countries and expanding its staff from 1,400 to 32,000 employees, and also instilled a system of decentralized management that emphasized social responsibility above profit. In recent years, AES has signaled a commitment to providing its consumers and clients with renewable forms of energy, and its operations across the world increasingly have focused on the construction and provision of solar and wind-based energy storage systems.

AES acquired the assets of Indianapolis Power & Light, Ipalco, in 2000.[9] In February, 2021, Indianapolis Power & Light rebranded as AES Indiana.[10]

AES acquired the Chilean-based subsidiary Gener in 2000 and acquired DPL Inc., then known as Dayton Power & Light, in 2011.[11] The company was rebranded as AES Ohio in February, 2021.[12]

In fiscal 2015 AES's total revenue was $15 billion.[13]

In 2018, AES acquired the subsidiary sPower.

In December, 2021, AES acquired Community Energy Solar (Community Energy) to help deliver 4 GW of renewables in the U.S.[14]

Major projects

Fluence

Launched during January 2018, Fluence is a joint venture between AES Energy Storage and Siemens that is focused on the development of, and expansion of energy storage technologies and services. Chaired by former AES vice-president for energy storage platforms Stephen Coughlin, and headquartered in Washington D.C., Fluence aims to implement AES's extensive research into the potential of lithium-ion powered energy sources by relying upon Siemens' expansive global presence in the industrial sector; for the purpose of addressing the rapidly rising demand for clean energy technologies.[15] Fluence has been deployed in 16 countries, with major projects including the following:[16]

  1. The creation of a new 40 megawatt storage facility on behalf of San Diego Gas & Electric's new 40 MW storage facility.[17]
  2. Three solar powered projects throughout Arizona and two 10 MW projects in the Dominican Republic.[18]
  3. The installation of six storage projects across Germany that will provide grid stabilization.[19]
  4. The construction of a hybrid microgrid on the Mediterranean Island of Ventotene. Said microgrid will be developed as per an agreement between Fluence and the Italian energy utility Enel, and will combine diesel generators with renewables in order to aid in the efforts to reduce carbon costs and emissions. The key technology platforms developed by Fluence include the following.

Key Fluence technologies

Fluence is expected to employ three different types of grid technology.

i):SIESTORAGE: An electrical energy storage system fueled predominantly by wind and solar energy. Siestorage relies upon the closed-loop controls and pulse modulation built into its semiconductors, in order to provide consumers with increased dependability.[20]

ii):Advancion: A storage system that is made up of several small, modular nodes and powered by lithium-ion batteries, which enables the Advancion energy store system to provide consumers with a heightened degree of consistency in performance.[21]

iii): Sunflux Energy: Announced in January 2018, Sunflex was developed for the purpose of expanding upon the possibilities offered by photovoltaic solar energy. This technology is built to capture energy during peak solar hours in order to expand energy delivery.[22] [23]

Projected ventures using Fluence technologies

Presently, the biggest project in Fluence's portfolio is a 100–400 Mwh "power center energy storage project" for Southern California Edison.[24] This system will be housed within AES's power center in Los Alamitos, California.

During January 2018, the subsidiary AES India, working in partnership with Mitsubishi, commenced construction of a 10 MW energy storage solution that will be located in Rohini. This storage solution, which shall operate off Fluence's Advancion technology, is projected to be the first utility-scale system to be in India.[25]

sPower

Headquartered in Salt Lake City and acquired from Fir Tree Partners Inc in a purchase during 2017 as part of a joint acquisition with Alberta Investment Management Corporation, sPower is a large developer of utility-scale solar in the United States, operating across 11 states, and with particular focus on the states of California and North Carolina.[26] Its current operating portfolio includes 1.3 GW worth of solar and wind based properties, in addition to over 10,000 MW worth of projects that are in the developmental stage.[27]

Investment in drone technologies

As part of an effort by AES to protect its employees from industry hazards and to improve workplace safety, the company announced a partnership with drone provider Measure to inspect their various energy infrastructures sites across 17 countries.[28]

Major properties and subsidiaries

Properties and subsidiaries in North America

Properties in South America

Based in Argentina

Based in Brazil

Based in Chile

Properties and subsidiaries in Europe

Based in United Kingdom

Based in Bulgaria

Based in the Netherlands

Properties and subsidiaries in Asia

Properties and subsidiaries in the Middle East

Based in Jordan

Properties and subsidiaries in Central Asia

Based in Kazakhstan

Properties and subsidiaries in Southeast Asia

Based in the Philippines
Based in Vietnam

Properties and subsidiaries in India

Notes and References

  1. Web site: 2023 Annual Report (Form 10-K) . February 26, 2024 . U.S. Securities and Exchange Commission.
  2. Web site: Our history AES.
  3. Web site: AES . 2018-11-24 . Fortune . en-US.
  4. Web site: AES Named in the Top Ten on Fast Company's 2022 Ranking of Best Workplaces for Innovators . 2022-08-10 . markets.businessinsider.com . en.
  5. Web site: AES - Frequently Asked Questions . https://web.archive.org/web/20061022225418/http://investor.aes.com/phoenix.zhtml?c=76149&p=irol-faq#6563 . dead . 2006-10-22 . Investor.aes.com . 2012-10-07 .
  6. News: Gross . Daniel . 2003-03-11 . When Bad Things Happen to Good Companies . en-US . Slate . 1091-2339.
  7. Web site: 2005-11-25 . Ex-AES CEO now puts his energy in education . NH Business Review . en-US.
  8. Book: Laloux, Frederic. Reinventing Organizations.
  9. News: AES acquiring Ipalco. CNNfn. July 17, 2000. November 4, 2017.
  10. News: IPL changed its name to AES. Here's how it affects its electric customers. Indianapolis Star. February 24, 2021. June 18, 2021.
  11. News: AES completes DPL merger. Nolan. John . Dayton Daily News. November 29, 2011. November 4, 2017.
  12. News: DP&L is renamed AES Ohio, ending longstanding name. Dayton Daily News. February 24, 2021. June 18, 2021.
  13. Web site: AES Corporation, Form 10-K, Annual Report . aes.com . April 27, 2016.
  14. Web site: AES Corporation Acquires Community Energy to Boost its Solar & Storage Project Pipeline. everythingPE.com . December 23, 2021.
  15. Spector, Julian. "AES and Siemens Partner to Create New Energy Storage Powerhouse". GreenTech Media. January 11, 2018. Accessed June 14, 2018.
  16. http://blog.fluenceenergy.com/energy-storage-company-fluence-launches-with-unparalleled-suite-of-capabilities-for-customers-in-over-160-countries "Energy Storage Company Fluence Launches with Unparalleled Suite of Capabilities for Customers in Over 160 Countries"
  17. Colthorpe, Andy. "AES and Siemens' energy storage JV Fluence launches solar-plus-storage platform, financing". Energy Storage News. January 11, 2018. Accessed June 14, 2018.
  18. http://blog.fluenceenergy.com/energy-storage-company-fluence-launches-with-unparalleled-suite-of-capabilities-for-customers-in-over-160-countries "Energy Storage Company Fluence Launches with Unparalleled Suite of Capabilities for Customers in Over 160 Countries".
  19. Web site: Advancion Energy Storage Fluence - A Siemens and AES Company . June 14, 2018 . June 15, 2018 . https://web.archive.org/web/20180615004510/http://fluenceenergy.com/energy-storage-solutions/energy-storage-technology/advancion-energy-storage/ . dead .
  20. http://fluenceenergy.com/energy-storage-solutions/energy-storage-technology/siestorage-energy-storage/
  21. http://fluenceenergy.com/energy-storage-solutions/energy-storage-technology/advancion-energy-storage/
  22. http://fluenceenergy.com/energy-storage-solutions/energy-storage-technology/sunflex-energy-storage/
  23. Web site: Fluence Sunstack . fluenceenergy.com . 2022 . 2022-10-25. TS-009-06-EN
  24. Lambert, Fred. https://electrek.co/2018/01/11/aes-siemens-launch-fluence-energy-storage-startup-tesla-energy-world-biggest-battery-project//. "AES and Siemens launch new energy storage startup to compete with Tesla Energy, will supply new world's biggest battery project". January 11, 2018. Accessed June 14, 2018.
  25. https://www.businesswire.com/news/home/20180123005294/en/AES-Mitsubishi-Corporation-Start-Construction-India%E2%80%99s-Grid-Scale
  26. Kenning, Tom. "sPower sold to AES and AIMCo for US$1.6 billion". August 1, 2017. Accessed June 15, 2018.
  27. Swagath, BV. https://www.compelo.com/energy/news/solaero-wins-contract-to-supply-solar-panels-to-ssl/. "SolAero wins contract to supply solar panels to SSL". Accessed June 15, 2018.
  28. https://www.prnewswire.com/news-releases/measure-partners-with-aes-to-deploy-drones-at-record-scale-for-the-energy-industry-300403105.html. "Measure Partners With AES To Deploy Drones At Record Scale For The Energy Industry".
  29. Web site: Battery Storage Will Offer Grid Support as Puerto Rico Recovers . Wagman . David . 2017-11-28 . IEEE Spectrum: Technology, Engineering, and Science News . en . 2017-12-07.
  30. Web site: AES Energy Storage . AES Energy Storage . 2012-10-07.
  31. Web site: SDG&E and AES complete world's largest lithium ion battery facility. Energy Storage News. 28 February 2017. 6 March 2017.
  32. Web site: AES Puerto Rico. 2020-11-06.
  33. https://s2.q4cdn.com/825052743/files/doc_downloads/Fact%20Sheet/2017/08/08-10-17-Q2-2017-Fact-Sheet_FINAL.pdf "The AES Corporation Factsheet As Of August 8, 2017
  34. https://www.aesargentina.com.ar/?page=nota&code=10
  35. http://aesukireland.com/our-business/kilroot/default.aspx "Kilroot Power Station".
  36. http://blog.fluenceenergy.com/aes-unveils-aes-kilroot-advancion-energy-storage-array "AES Unveils AES Kilroot Advancion Energy Storage Array".
  37. http://www.elstacogen.nl/index_en.php?p=en_home "Eltsa Cogeneration Power Plant Hoek AES".
  38. http://blog.fluenceenergy.com/aes-netherlands-advancion-energy-storage-array-now-serving-european-grid "AES Netherlands Advancion Energy Storage Array Now Serving European Grid"
  39. http://aes.ph/masinloc-coal-fired-thermal-power-plant/ "Masinloc Coal- Fired Thermal Power Plant
  40. http://blog.fluenceenergy.com/aes-to-bring-first-battery-based-energy-storage-to-the-philippines "AES to Bring First Battery-Based Energy Storage to the Philippines".
  41. Web site: May 11, 2015. AES Achieves Commercial Operation of 1,240 MW Mong Duong 2 Plant in Vietnam. live. 19 June 2018. https://web.archive.org/web/20180620002151/https://www.businesswire.com/news/home/20150511005348/en/AES-Achieves-Commercial-Operation-1240-MEGAWATTS-Mong . June 20, 2018 .