AES Expands Small Hydro Platform in Turkey to 42 MW

Published on Friday, 27 August 2010 17:42 Written by TradersHuddle Staff

ARLINGTON, Va.-( Business Wire )-

The AES Corporation (NYSE: AES) today announced the start of commercial operations for the 16 MW Damlapinar hydro power facility on the Goksu River in Karaman, Turkey. The hydropower facility is owned and operated by AES-IC Ictas Energy (“AES-IC”), a 51 percent AES owned joint venture. The project increases AES’ small hydro capacity in Turkey to 42 MW. The project cost was $65 million, of which $36 million was financed by a non-recourse seven year term loan.

“Turkey continues to be a focal point for our development efforts given the rate of growth in electricity demand and the upcoming privatization of state-owned generation facilities. Bringing small hydros into commercial operation underscores our commitment to helping Turkey meet its power needs," said Paul Hanrahan, President and Chief Executive Officer of AES. AES began operations in Turkey in 2007.

“The expansion of our platform of operating businesses in Turkey is an important milestone in our regional development efforts,” said Mark Green, Managing Director of Development for AES.

The 16 MW Damlapinar facility includes two 8.2 MW Francis Turbines from Harbin Power Engineering, a Chinese manufacturer, and the Engineering, Procurement and Construction work was performed by IC Ictas Construction. Damlapinar is the first of two AES-IC cascading run-of-river facilities and includes a small dam with storage capacity that will allow production planning for peak generation during key periods. The downstream 28 MW Kepezkaya facility, as well as the 18 MW Kumkoy small hydro project, located in Samsun, are both expected to start commercial operation by the end of the year. Electricity generated by the renewable power project will be sold into the wholesale market through day-ahead spot sales or to eligible customers through short-term contracts.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global power company with generation and distribution businesses. Through our diverse portfolio of thermal and renewable fuel sources, we provide affordable and sustainable energy to 30 countries. Our workforce of 27,000 people is committed to operational excellence and meeting the world's changing power needs. Our 2009 revenues were $14 billion and we own and manage $40 billion in total assets. To learn more, please visit www.aes.com.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalised investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission, including, but not limited to, the risks discussed under Item 1A "Risk Factors" in AES' 2009 Annual Report on Form 10-K. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company's 2009 Annual Report on Form 10-K filed on or about February 25, 2010 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K is available on the Company's website at www.aes.com.

The AES CorporationMedia ContactMeghan Dotter, 703 682 6670orInvestor ContactAhmed Pasha, 703 682 6451