- American Electric Power yesterday unveiled a new carbon reduction strategy that will reduce emissions from its power plants by 60% from 2000 levels by 2030 and 80% by 2050, through a focus on boosting renewable energy capacity in regulated and competitive markets.
- The company's plans include adding 3,065 MW of solar generation and 5,295 MW of wind generation to the portfolio serving its regulated utility customers by 2030.
- AEP also has plans to invest in renewable energy in competitive markets. By 2020, the company will invest approximately $1.2 billion in contracted renewables and renewables integrated with energy storage.
AEP's plans run the gamut, including investments in carbon-free generation, transmission, storage and efficiency. The company will spend billions to further reduce its reliance on fossil fuels, a strategy it has been executing for more than a decade.
Since 2005, AEP’s generation capacity has gone from 70% to 47% coal-fired, while gas capacity increased from 19% to 27% and renewable capacity moved from 4% to 13%. AEP said carbon regulations have factored into its decisions, and the company has already cut its carbon dioxide emissions by 44% since 2000.
AEP Chairman Nicholas Akins said in a statement that "this transition to a more balanced resource portfolio will help mitigate risk for our customers and shareholders alike and ensure a more resilient and reliable energy system."
Plans include adding more than 3 GW of solar and 5 GW of wind by 2030 to serve customers in regulated markets. AEP’s largest planned renewable energy investment is the $4.5 billion, 2,000 MW Wind Catcher Energy Connection project in Oklahoma that, if approved, would be the largest contiguous wind farm in the U.S. The project would deliver energy to customers in Oklahoma, Arkansas, Louisiana and Texas.
AEP also said that between 2018 and 2020, the company will invest approximately $1.2 billion in contracted renewables and renewables integrated with energy storage. And to enhance the efficiency and resiliency of the energy delivery system, AEP wants to invest nearly $13 billion over the next three years in its transmission and distribution system.