American Electric Power charges ahead with $2bn US North Central wind complex
Go-ahead for near-1.5GW project points to investor-owned utilities moving forward with large renewables investments despite Covid-hit economic slow-down
US electric utility American Electric Power (AEP) has set the seal on enough regulatory approvals to advance its $2bn North Central wind power complex in Oklahoma by the fourth quarter of next year.
The near-1.5GW project is the latest sign that many investor-owned utilities are moving ahead with large renewable energy capital expenditures to partially replace ageing coal, natural gas and nuclear power plants despite the worst national economy since the Great Depression.
This has helped the US wind industry so far cope with Covid-19 impacts better than most sectors of the world’s largest economy, and 2020 should still be among its best years for capacity additions.
“As AEP continues to add new clean energy to our generation portfolio, this investment is expected to save our customers approximately $3bn over the next 30 years while supporting economic development in our communities,” CEO Nick Atkins, said in a statement.
North Central comprises three wind farms: 999MW Traverse, the nation’s second largest development at a single site; 287MW Maverick; and 199MW Sundance. Sundance is eligible for the federal production tax credit at 100% value – $24/MWh for grid power over 10 years - and the others at 80%. All will be equipped with GE turbines.
AEP subsidiaries Public Service Company of Oklahoma (PSO) and Southwestern Electric Power (SWEPCo) will acquire the projects from developer Invenergy upon their completion.
PSO will acquire 675MW of capacity in Oklahoma with SWEPCo intending to take the balance (78MW is allocated for SWEPCo wholesale customers) for Arkansas (155MW) and Louisiana (268MW).
Regulators in those states gave SWEPCo the option to allow it to “flex up” and acquire additional capacity totaling 810MW between them – if their counterparts in Texas do not approve cost recovery for 309MW of capacity the utility has allocated there.
AEP continues to seek regulatory approval in Texas. The utility commission there has 365 days to issue a statutory timeline for issuing an order that expires on 15 July.
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