'Important steps'| AEP subsidiary I&M ramps move from coal with solar deals and 2GW RFP
The PV agreements with EDF Renewables cover 554MW of new capacity as the utility diversifies its generation sources to boost flexibility to better serve customers
US utility Indiana Michigan Power (I&M) sealed two agreements with EDF Renewables to add 554MW of solar PV capacity on a direct current basis, while issuing a separate request for proposals (RFP) for almost 2GW of clean energy resources.
I&M is among a growing number of medium-size integrated utilities in the US that are transitioning from coal to renewables backed by natural gas peaking capacity, while retaining nuclear generation.
The utility also signed a 30-year agreement with EDF to purchase the full output from the 236MW Sculpin solar project set for the same in-service timeframe. The projects are in the midwestern state of Indiana.
“The Lake Trout and Sculpin projects are important steps in I&M’s continued transition to cleaner, more diverse energy sources,” said I&M CEO Steve Baker.
Combined, these two projects are expected to generate approximately 880,000 MWh of clean energy annually. This is equivalent to avoiding over 624,000 metric tonnes of carbon emissions annually.
Sculpin and Lake Trout are two of four utility solar projects the utility wants to incorporate into its generation mix over the next several years. The others are the 224MW Mayapple, which it would own, and 100MW Elkhart County whose electricity it would purchase.
The diversity of generation sources increases I&M’s flexibility to better serve customers by having options to address future changes in regulatory policies and price volatility of energy for the various forms of generation, according to the utility.
Solar now represents less than 1% of its energy mix that is led by coal (48.5%) and nuclear (42.1%), with wind (8.3%) and hydro also less than 1%.
Looking forward, the new RFP’s clean energy resources include 850MW of solar, 800MW of wind, and 315MW of battery storage. The utility said it is open to other proposals that could involve emerging technologies, thermal energy, or other resources. Bids are due by 26 May with projects expected to operate by the end of 2027.
Projects must be located in Indiana or Michigan, with the exception of those for wind that have the siting option in neighbouring Illinois or Ohio. By comparison, I&M has about 5.4GW of generation capacity.