Santiago-based power company AES Gener SA said it will invest USD 1.8 billion (EUR 1.6bn) to add around 1.6 GW of new wind and solar capacity to portfolios in Chile and Colombia.

The projects will in part be financed through a capital increase of USD 500 million, the company said in its earnings report on Thursday. An extraordinary shareholders meeting has been scheduled for March 19 to discuss the capital hike and its exact amount, according to a regulatory filing.

AES Gener, which operates as the Chile-based unit of US power giant AES Corp (NYSE:AES), has amassed power purchase agreements (PPAs) covering 8.1 TWh per year in Colombia and Chile. Among them are long-term agreements with corporate and industrial (C&I) customers in both markets, as well as contracts assigned in Colombia’s two power auctions in 2019.

In order to fully meet the PPA obligations, the company intends to incorporate wind, solar and hydropower totalling some 2.1 GW. The investment that was announced on Thursday will cover for 1.1 GW of wind and 500 MW of solar, which are to be added by 2024. This capacity will be complemented by 531 MW generated by the Alto Maipo hydropower plant in Chile, which is currently in the final stages of construction.