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Fair Value (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Significant unobservable inputs, recurring
The following table summarizes the significant unobservable inputs used for the Level 3 derivative assets (liabilities) as of December 31, 2024 (in millions, except range amounts):
Type of DerivativeFair ValueUnobservable Input
Amount or Range
(Average)
Interest rate$(1)Subsidiary credit spread
1.5% to 3.1% (2.3%)
Foreign currency:
Argentine peso52 Argentine peso to USD currency exchange rate after one year
1,244 to 1,330 (1,287)
Commodity:
CAISO energy swap(22)Forward energy prices per MWh after 2030
$10.32 to $111.38 ($49.98)
Other1 
Total$30 
Derivatives Level 3 Rollforward Table
The following tables present a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2024 and 2023 (derivative balances are presented net), in millions. Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.
Derivative Assets and Liabilities
Year Ended December 31, 2024Interest RateForeign CurrencyCommodityContingent ConsiderationTotal
Balance at January 1$(4)$59 $(110)$(165)$(220)
Total realized and unrealized gains (losses):
Included in earnings— 23 4 (10)17 
Included in other comprehensive income — derivative activity3 8 84 — 95 
Included in other comprehensive income — foreign currency translation activity— — — 1 1 
Included in regulatory (assets) liabilities— — 5 — 5 
Acquisitions
— — — (76)(76)
Settlements— (38)(4)105 63 
Balance at December 31$(1)$52 $(21)$(145)$(115)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period$— $(6)$6 $(10)$(10)
Derivative Assets and Liabilities
Year Ended December 31, 2023Interest RateForeign CurrencyCommodityContingent ConsiderationTotal
Balance at January 1$— $64 $(47)$(48)$(31)
Total realized and unrealized gains (losses):
Included in earnings— 16 (10)14 20 
Included in other comprehensive income — derivative activity1 6 (48)— (41)
Included in regulatory (assets) liabilities— — (1)— (1)
Acquisitions
— — — (239)(239)
Settlements(1)(27)(5)108 75 
Transfers of assets/(liabilities), net into Level 3(4)— — — (4)
Transfers of (assets)/liabilities, net out of Level 3— — 1 — 1 
Balance at December 31$(4)$59 $(110)$(165)$(220)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period$— $(4)$(13)$14 $(3)
Financial instruments not measured at fair value in the condensed consolidated balance sheets
The following table presents (in millions) the carrying amount, fair value, and fair value hierarchy of the Company's financial assets and liabilities that are not measured at fair value in the Consolidated Balance Sheets as of the dates indicated, but for which fair value is disclosed:
December 31, 2024
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$87 $171 $— $— $171 
Liabilities:Non-recourse debt22,743 23,066 — 20,981 2,085 
Recourse debt5,704 4,538 — 4,538 — 
December 31, 2023
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$193 $239 $— $— $239 
Liabilities:Non-recourse debt22,144 22,174 — 20,676 1,498 
Recourse debt4,464 4,210 — 4,210 — 
_____________________________
(1)These amounts primarily relate to the sale of the Redondo Beach land, the amounts impacted by the Stabilization Funds enacted by the Chilean government, and for December 31, 2023 only, the receivables under the Warrior Run PPA termination agreement. These are included in Other noncurrent assets on the Consolidated Balance Sheets. See Note 7—Financing Receivables for further information.
Significant unobservable inputs, nonrecurring
The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived asset groups held and used measured on a nonrecurring basis during the year ended December 31, 2023 (in millions, except range amounts):
December 31, 2023Fair ValueValuation TechniqueUnobservable InputRange (Weighted Average)
Long-lived asset groups held and used:
New York Wind
$124 Discounted cash flowAnnual revenue growth
-1% to 5% (2%)
Annual variable margin
2% to 17% (9%)
TEP
94 Discounted cash flowAnnual revenue growth
-31% to 6% (-2%)
Annual variable margin
22% to 37% (26%)
Discount rate
14% to 25% (14%)
TEG
93 Discounted cash flowAnnual revenue growth
-7% to 9% (0%)
Annual variable margin
14% to 33% (20%)
Discount rate
14% to 25% (14%)
Warrior Run (1)
25 Discounted cash flowAnnual variable margin
-931% to 74% (-506%)
Norgener (2)
24 Discounted cash flowAnnual revenue growth
-90% to 994% (85%)
Annual variable margin
-75% to 276% (16%)
GAF Projects (AES Renewable Holdings)
11 Discounted cash flowAnnual revenue growth
-42% to 44% (1%)
Discount rate
9%
Total$371 
_____________________________
(1)The fair value of the Warrior Run asset group was mainly related to cash on hand and existing coal inventory not subject to impairment under ASC 360-10, and is partially reduced by expected decommissioning and demolition costs.
(2)The fair value of the Norgener asset group subsequent to the impairment analysis performed on May 1, 2023 was mainly related to existing coal inventory not subject to impairment under ASC 360-10. In December 2023, the Company recognized an inventory impairment of $23 million in Other expense. See Note 22—Other Income and Expense for further information.
Fair value hierarchy for nonrecurring measurements table The following table summarizes our major categories of asset groups measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions):
Year Ended December 31, 2024Measurement Date
Carrying Amount (1)
Fair Value
Pre-tax
Loss
AssetsLevel 1Level 2Level 3
Held-for-sale businesses: (2)
Mong Duong
3/31/2024$450 $— $413 $— $37 
AES Brasil (3)
5/15/20241,577 — 1,565 — 25 
Mong Duong (5)
6/30/2024390 — 389 — 6 
AES Brasil (4)
9/30/20241,581 — 1,548 — 55 
Mong Duong (5)
9/30/2024407 — 400 — 11 
Mong Duong (5)
12/31/2024365 — 362 — 8 
Ventanas
12/31/2024131 — 6 — 125 
Year Ended December 31, 2023Measurement Date
Carrying Amount (1)
Fair Value
Pre-tax
Loss
AssetsLevel 1Level 2Level 3
Long-lived asset groups held and used: (6)
Norgener (7)
5/1/2023$196 $— $— $24 $137 
GAF Projects (AES Renewable Holdings)5/31/202329 — — 11 18 
TEG7/31/2023170 — — 93 77 
TEP7/31/2023153 — — 94 59 
New York Wind11/30/2023310 — — 124 186 
Warrior Run (8)
11/30/2023250 — — 25 198 
Held-for-sale businesses: (2)
Jordan (9)
3/31/2023$179 $— $170 $— $14 
Jordan (9)
6/30/2023179 — 170 — 15 
Jordan (9)
9/30/2023178 — 170 — 14 
Jordan (9)
12/31/2023180 — 170 — 16 
Mong Duong (5)
12/31/2023575 — 413 — 167 
Goodwill: (10)
TEG TEP10/1/2023$12 $— $— $— $12 
_____________________________
(1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment.
(2)See Note 25—Held-for-Sale and Dispositions for further information.
(3)The pre-tax loss recognized was calculated using the fair value of the AES Brasil disposal group less costs to sell of $13 million. A subsequent impairment analysis was performed as of June 30, 2024 and no additional impairment was identified.
(4)The pre-tax loss recognized was calculated using the fair value of the AES Brasil disposal group less costs to sell of $22 million.
(5)The pre-tax loss recognized was calculated using the fair value of the Mong Duong disposal group less costs to sell of $5 million.
(6)See Note 23—Asset Impairment Expense for further information. Per ASC 360-10, the pre-tax impairment expense for long-lived asset groups held and used is limited to the carrying amount of the long-lived assets.
(7)The Norgener asset group includes long-lived assets, inventory, land, and other working capital, however per ASC 360-10, the pre-tax impairment expense is limited to the carrying amount of the long-lived assets. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and determined that the carrying value of the other assets should not be reduced.
(8)The Warrior Run asset group includes long-lived assets, inventory, and other working capital, however per ASC 360-10, the pre-tax impairment expense is limited to the carrying amount of the long-lived assets. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and recognized an inventory impairment of $6 million in Other expense. See Note 22—Other Income and Expense for further information.
(9)The pre-tax loss recognized was calculated using the fair value of the Jordan disposal group less costs to sell of $5 million for the March 31, 2023 measurement date and $6 million for the June 30, 2023, September 30, 2023, and December 31, 2023 measurement dates.
(10)See Note 10—Goodwill and Other Intangible Assets for further information.
AES Clean Energy Development Projects — On a quarterly basis, the Company reviews the status of development projects to identify projects that are no longer viable and will be abandoned. The fair value of each abandoned project with no salvage value is determined to be zero as there are no future projected cash flows, resulting in a full write-off of the carrying value of project development intangibles and capitalized development costs incurred.
The Company recognized $95 million and $151 million of pre-tax asset impairment expense in 2024 and 2023, respectively, including $137 million during the fourth quarter of 2023 primarily related to the write-off of project development intangibles which were recognized at fair value when the Company acquired sPower's development platform as part of the formation of AES Clean Energy Development. See Note 23—Asset Impairment Expense for further information.
Fair value hierarchy for recurring measurements table The following table presents, by level within the fair value hierarchy as described in Note 1—General and Summary of Significant Accounting Policies, the Company's financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Company's investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities:
 December 31, 2024December 31, 2023
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit$— $4 $— $4 $— $360 $— $360 
Government debt securities— 4 — 4 — — — — 
Total debt securities— 8 — 8 — 360 — 360 
EQUITY SECURITIES:
Mutual funds51 — — 51 46 — — 46 
Common stock
4 — — 4 — — — — 
Total equity securities55 — — 55 46 — — 46 
DERIVATIVES:
Interest rate derivatives— 349 — 349 — 182 2 184 
Foreign currency derivatives— 9 52 61 — 15 59 74 
Commodity derivatives193 80 5 278 — 127 1 128 
Total derivatives — assets193 438 57 688 — 324 62 386 
TOTAL ASSETS$248 $446 $57 $751 $46 $684 $62 $792 
Liabilities
Contingent consideration
$— $— $145 $145 $— $— $165 $165 
DERIVATIVES:
Interest rate derivatives— 14 1 15 — 102 6 108 
Cross-currency derivatives— — — — — 63 — 63 
Foreign currency derivatives— 18 — 18 — 19 — 19 
Commodity derivatives185 44 26 255 — 145 111 256 
Total derivatives — liabilities185 76 27 288 — 329 117 446 
TOTAL LIABILITIES$185 $76 $172 $433 $— $329 $282 $611 
Schedule of Realized Gain (Loss) The following table presents gross proceeds from sale of available-for-sale securities for the periods indicated (in millions):
Year Ended December 31,202420232022
Gross proceeds from sale of available-for-sale securities
$717 $1,377 $1,065