November 16, 2018 Read More →

American Electric Power reaffirms plans to cut coal generation, increase renewables

Daily Energy Insider:

American Electric Power (AEP) is planning to close coal plants and increase capital investments in renewables to balance its portfolio and reduce risk, AEP Chairman, President and CEO Nicholas Akins said at the Edison Electric Institute Financial Conference held this week in San Francisco.

The company plans to invest $33 billion in capital from 2019 through 2023. AEP expects to invest about $16.6 billion in its transmission businesses and another $8.3 billion in its distribution businesses over the next five years.

The planned investments involve $2.7 billion for new clean energy generation, which include $2.2 billion for competitive, contracted renewable projects. In regard to contracted renewables, the company focuses on opportunities that are longer tenure, credit-worthy counterparties and mostly electric utilities, Akins said during a presentation to investors.

The company plans to invest $1 billion in regulated fossil fuel and hydro generation and $500 million in nuclear generation through 2023. The company is moving from approximately 65 percent coal to 38-40 percent coal. Akins noted that the company’s portfolio will likely continue to include some coal into the future.

“That’s really a focus of the de-risking that’s occurred relative primarily to fossil generation and moving toward a more balanced portfolio with the advent of not only natural gas but renewables, energy storage, other technologies that we’re primed to be able to take advantage of,” Akins said.

More: AEP aims to reduce risk by increasing renewable investments, closing coal plants

 

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