AEP Signals Move to Cut Emissions, Add Renewables
David Wagman | February 07, 2018One of the biggest coal-centric utilities says it plans to add more than 8,000 megawatts of wind and solar generating capacity by 2030 as it aims to cut its emission profile.
Columbus, Ohio-based American Electric Power says it plans to reduce carbon dioxide emissions from its power plants by 60 percent from 2000 levels by 2030 and 80 percent by 2050.
Baseline emissions in 2000 totaled 167 million metric tons. The company's long-term strategic vision aims to cut that to 67 million metric tons in 2030 and to 33 million metric tons in 2050.
The utility says it expects to achieve its goal through investments in renewable generation and advanced technologies; investment in transmission and distribution systems to enhance efficiency; increased use of natural gas generation; and expanded demand response and energy efficiency programs.
AEP's assets include more than 224,000 miles of distribution lines that serve nearly 5.4 million customers in 11 states. It operates around 33,000 megawatts of generating capacity. Its operating units includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP also owns AEP Energy, AEP Energy Partners, AEP OnSite Partners and AEP Renewable.
AEP serves customers in 11 states. According to its resource plan, the utility intends to add 3,065 megawatts (MW) of solar generation and 5,295 MW of wind generation by 2030.
AEP's largest planned renewable energy investment is the $4.5 billion, 2,000 MW Wind Catcher Energy Connection project in Oklahoma. If approved, Wind Catcher would be one of the largest contiguous wind farms in the U.S. (Read "A Big Coal Utility Opts for Wind ... and Lots of It.")
From 2011 to mid-2016, AEP retired more than 7,200 MW of coal-fueled generating capacity. In early 2017, it completed the sale of four fossil-fueled plants totaling approximately 5,300 MW.
Between 2018 and 2020, the company plans to invest approximately $1.2 billion in contracted renewables and renewables integrated with energy storage.
AEP's strategy also includes plans to invest nearly $13 billion over the next three years in its transmission and distribution system.
The utility says its generation capacity has gone from 70 percent coal-fueled in 2005 to 47 percent. Its natural gas capacity increased from 19 percent in 2005 to 27 percent, and its renewable generation capacity has increased from 4 percent in 2005 to 13 percent.