AES · 10-Q · 2026Q2 · Full report

Supply Chain Diversification

AES CORP · 2026-08-04 · Importance 17 · Surprise 24

AES expects tariffs on Chinese imports to increase costs for materials and parts used to build and maintain U.S. renewable energy plants, but it has shifted the vast majority of final products in its U.S. supply chain outside China. The company accelerated imports and increased contracting for U.S.-manufactured solar panels, batteries, wind turbines, trackers, and other equipment to mitigate tariff and trade-disruption risks. For U.S. solar projects scheduled to enter service in 2026–2027, most panel requirements are contracted, with the majority manufactured in the U.S.; all battery needs are contracted, almost entirely from U.S. or South Korean suppliers, and all 2026 wind turbines have been contracted and delivered.

Key facts

• For U.S. backlog of solar projects scheduled to finish in 2026 or 2027, AES has contracted for most panel supply with majority manufactured in the U.S. and most remaining panels already imported into U.S. source
• For U.S. backlog of storage projects scheduled to finish in 2026 or 2027, AES has contracted all battery needs with almost all batteries coming from U.S. or South Korean suppliers source
• For U.S. backlog of wind projects scheduled to be completed in 2026, AES has contracted and received delivery of all turbines; for 2027 backlog AES is fully contracted with U.S. suppliers and suppliers with primarily U.S. manufactured turbines source
• AES has accelerated imports into the U.S. and increased contracting for U.S. domestically manufactured solar panels, batteries, wind turbines, trackers, and other equipment to mitigate tariff impacts source