AES Expands Small Hydro Platform in Turkey to 42 MW

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.

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