US utility AEP’s new business strategy includes investments in solar and wind power generation capacity along with natural gas to reduce its CO2 emissions. (Source: AEP)
- American Electric Power (AEP) plans to increase the share of renewables in its generation capacity
- Solar power generation is targeted to increase by 3,065 MW and wind power to around 5,295 MW
- These and other measures are expected to help the company to reduce its CO2 emissions by 60% from its 2000 levels by 2030 and 80% from by 2050
- It expects to invest $1.2 billion in contracted renewables and renewables integrated with energy storage
US-based power utility American Electric Power (AEP) plans to majorly expand its renewable energy capacity to be able to reduce its CO2 emissions by 60% from its 2000 levels by 2030 and 80% from by 2050. AEP’s plan charts a major role to be played by solar power generation, adding 3,065 MW of capacity.
Another 5,295 MW of renewable capacity will come from wind power generation. Currently, its wind and solar power portfolio totals 4,198 MW. AEP will add capacity to its portfolio, serving regulated utility customers by 2030. It plans to invest $4.5 billion in setting up a 2 GW Wind Catcher Energy Connection project in Oklahoma. Once all of the necessary approvals are in place, this wind farm will be the largest contiguous wind farm in the country.
The company’s business strategy includes investment of $1.2 billion in contracted renewables and renewables integrated with energy storage. To improve its transmission and distribution systems, it plans to invest nearly $13 billion over the next 3 years.
AEP’s Strategic Vision for a Clean Energy Future 2018 report points out that the company reduced its coal-fueled generation capacity from 70% in 2005 to 47% today. During that period, it has increased natural gas capacity from 19% in 2005 to 27% today, and renewables totals 13% of its generation capacity today. Back in 2005, it made up only 4% of the mix.
“AEP is focused on modernizing the power grid, expanding renewable energy resources and delivering cost-effective, reliable energy to our customers,” said Nicholas K. Akins, AEP chairman, president and CEO. “Our customers want us to partner with them to provide cleaner energy and new technologies, while continuing to provide reliable, affordable energy,” he added, stressing that “ investors want us to protect their investment in our company, deliver attractive returns and manage climate-related risk. This long-term strategy allows us to do both.”
The entire AEP group has a cumulative renewable energy capacity of 4.2 GW, which is part of its 33 GW diversified generation capacity.