AES: Accelerating a responsible and just energy transition in Bulgaria

In December, the AES Corporation joined business and world leaders at COP28, the annual UN Climate Change Conference, during which governments discussed how to limit future climate change and how to prepare for it. The summit was held in Dubai, in the United Arab Emirates, where representatives of nearly 200 countries agreed, among other things, to start reducing global consumption of fossil fuels in order to achieve carbon neutrality by 2050.

AES intends to exit the substantial majority of its remaining coal facilities by year-end 2025 and to exit all coal by year-end 2027. From there, we intend to achieve net zero carbon emissions associated with our electricity sales by 2040 and to be net zero by 2050 for all business, including the carbon emissions associated with the use of our energy products. 

With this in mind, we know that energy transitions can also not be done overnight. To achieve a clean energy future requires meaningful consideration of the unique circumstances of each country and customers, and must balance environmental sustainability, energy security and resilience, and affordability and inclusiveness. 

AES is working together with customers, countries, and energy markets to meet changing energy needs and sustainability goals. Through innovative technological and commercial solutions, we are helping to diversify fuel mixes and integrate greener sources of energy while ensuring a strong, resilient grid.

At COP28, Bulgaria had its own pavilion UN Climate Change Conference for the first time and businesses, financial organizations, state institutions, and NGOs organized over 20 events. Juan Ignacio Rubiolo, Executive Vice President and President of Energy Infrastructure of AES, was invited by the Bulgarian Ministry of Environment to participate in a panel discussion titled ‘From Fossil Fuel to Green Transition’ during which he commented on the future of AES Bulgaria’s coal facility. 

AES Bulgaria is a long-term strategic investor in Bulgaria, and through our St. Nikola wind farm and AES TPP Galabovo, we have been working to guarantee the security of the energy supply, providing modern, reliable and sustainable energy solutions in Bulgaria for over 10 years. As we look forward, AES’ TPP in Galabovo’s sustainable future will depend on the fuel the power plant will choose once coal is phased out. AES is currently considering different options for replacing the existing fuel with a cleaner one - biomass, natural gas, waste-derived fuel. AES Bulgaria is also considering molten salt, a technology the company is currently developing at another coal-fired TPP in Chile. Upon completion of its analyses, AES Bulgaria plans to present its vision for the development of the power plant to the Bulgarian authorities. 

As Bulgaria is also seeking opportunities for the Maritza Basin more broadly and transitions plans are designed, it is important that public and private sector actors continue to work together and keep the local conditions in mind to manage the impact on workers and communities that may be impacted by the closures of fossil fuel facilities. 

In conclusion, the transition to green energy is a complex process that requires continuous engagement with all stakeholders, including local and national governments, customers, and local communities.