AEP / Renewable Energy / Wind Energy

AEP to invest $1.8 billion in renewables over the next three years

One of the United States’ largest power companies is looking to increase its renewable energy portfolio five-fold in value and has identified a 1.37 GW solar pipeline

American Electric Power is currently allowed to cover its fuel costs through a charge to Ohio customers that changes every three months.

COLUMBUS — “If there was one definitive sign that renewable energy has gone mainstream, this may be it. Last Friday American Electric Power (AEP), one of the United State’s largest power companies and one that owns a disproportionate share of coal assets, announced that it will invest $1.8 billion in new renewable energy projects during the 2018-2020 timeframe. This is nearly five times the company’s current investment in renewable energy generation by dollar value.

This $1.8 billion will represent around 10% of the company’s planned capital outlays during the period, 72% of which will go to its transmission and distribution businesses. While AEP still owns 60 power plants totaling 26 GW of capacity(47% of which is coal-fired generation), in the past 10 years the company has taken a sharp turn in strategy away from investing in generation towards its transmission and distribution.

Details in an AEP press release and a conference presentation are sparse. But while it appears that most of this will be wind, among the 5.57 GW of renewable energy projects identified for completion through 2025 under to serve its regulated utility businesses the company is looking at 1.37 GW of solar.”

— Christian Roselund, PV Magazine

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