AES Forms Strategic Partnership with CDPQ to Bolster AES Ohio’s Growth Plans

The AES Corporation (NYSE: AES) announced today that it has entered into an agreement to sell a 30% indirect equity interest in AES Ohio to global investment group CDPQ for approximately $546 million. The transaction is expected to close in the first half of 2025, subject to regulatory approvals.

This agreement expands AES’ partnership with CDPQ, which already includes AES Indiana, creating a similar ownership structure for both utilities. There will be no changes to management or operational control at AES Ohio. The partnership aims to provide additional funding to support AES Ohio’s significant growth plans.

AES Ohio plans to invest over $1.5 billion between 2024 and 2027 to improve system reliability by upgrading transmission infrastructure and modernizing the grid. The utility recently reached a settlement agreement for Phase 2 of its Smart Grid program, which could enable an investment of more than $240 million over four years, pending approval from the Public Utilities Commission of Ohio (PUCO). AES Ohio anticipates mid-teens compound annual rate base growth through 2027 as a result of these investments.

The utility also sees significant growth opportunities related to increased demand from data centers, which could increase peak load on its system by over 50% by the end of the decade.

CDPQ will fund its share of AES Ohio’s capital requirements to support these extensive growth initiatives, including incremental investments tied to the growing data center demand in the region.

“We are excited to support AES Ohio’s growth plans,” said Emmanuel Jaclot, Executive Vice President and Head of Infrastructure at CDPQ. “This investment strengthens our partnership with AES and enhances our involvement in modernizing and decarbonizing critical infrastructure.”

AES President and CEO Andrés Gluski emphasized the importance of the partnership, stating, “This transaction marks another strong step forward for AES Ohio, enabling the capital investments needed to meet our customers’ growing energy needs.”

The sale brings AES closer to its goal of achieving $3.5 billion in asset sales by 2027, having already secured over $2.7 billion through various transactions.