AES Invests in US Wind Force; AES Takes Initial Step into U.S. Wind Market

Sep 02 - Business Wire

The AES Corporation (NYSE:AES) announced today that it is making an equity investment in US Wind Force, LLC as its first step into the U.S. wind market. US Wind Force is a private company that focuses on developing wind energy projects in the fast-growing Eastern United States.

US Wind Force is an independent, privately held developer of wind energy projects. It was an early entrant in the Eastern United States, with projects underway in West Virginia, Maryland and Pennsylvania. The company focuses on the fast-growing, largely untapped East Coast renewable energy market, which is expected to triple over the next 10 years. US Wind Force handles all aspects of "wind farm" development, including site selection and leasing, data collection and surveying of sites, wind turbine selection, permitting, transmission grid interconnection and project construction management.

"We see a lot of potential in wind as a new and expanding source of electricity here in the United States and in other OECD countries," said AES President and Chief Executive Officer Paul Hanrahan. "This is a natural extension of our existing generation business. It provides a good opportunity for AES to enter the U.S. wind energy sector in the highly attractive East Coast market through a company that has good sites, a good market and a good management team. We look forward to working with US Wind Force to bring people a clean alternative source of electricity."

"We are delighted with our new relationship with AES. We see an alignment of our strategic interests in wind and renewables and believe the management and business culture of both our companies are well suited to achieving a common success in the eastern U.S. market," said US Wind Force Chief Executive Officer David McAnally. "We have over 1200 MWs of wind development assets in various stages of progress. This is a win-win for both AES and US Wind Force."

US Wind Force is currently accepting proposals and negotiating power off-take contracts for the first three Mid-Atlantic projects in its project portfolio. All three of these projects could be slated for construction as early as 2005. US Wind Force is seeing strong demand in the newly developing renewable energy market on the East Coast and predicts a high level of sustained growth over the next ten years.

World electricity production from wind is growing rapidly. The U.S. ranks second in the world in wind-driven capacity with more than 6,200 MW. Over the next ten years, wind generating capacity is expected to exceed 10,000 MW in the Northeast U.S. alone.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release regarding AES Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Cautionary Statements and Risk Factors" in the Company's 2003 Form 10-K.

About AES

AES is a leading global power company, with 2003 sales of $8.4 billion. AES operates in 27 countries, generating 45,000 megawatts of electricity through 113 power facilities and delivers electricity through 17 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.

About US Wind Force

US Wind Force is a privately held wind energy developer with regional offices located in Frostburg, Maryland and Petersburg, West Virginia and an executive office soon to be opened just north of Pittsburgh, Pa. The company began the initial stages of developing a pipeline of wind generating sites in the Mid-Atlantic region in 2000 and currently has two permitted projects in Maryland and West Virginia as well as a number of additional sites in various stages of development.

 

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