Competing for Renewables
The transition to a clean energy future is happening at the hands of customers who are requesting it. As AEP seeks to balance its renewable portfolio, we are looking beyond our traditional service territory for investments. Our advantage is that we bring a low cost of capital and the ability to buy affordable renewable energy in bulk that is attractive to customers. This is especially appealing to companies, universities and municipalities that often have their own renewable energy goals. When we invest in large-scale wind and solar, we can cost-effectively improve access to clean energy for more people across the country.
Boulder Solar II is a 50-MW-AC solar facility in Nevada that began commercial operation in January 2017.
Between 2017 and 2019, AEP intends to invest up to $1 billion in contracted renewables to provide the energy solutions customers want, which are largely technology-based, and deliver a cleaner emission profile in the process.
We will do this through our two renewable energy subsidiaries – AEP OnSite Partners and AEP Renewables – that work with large users of energy on solutions and projects to help them achieve their specific goals. At OnSite Partners this could include applying a technology, such as combined heat and power, reducing emissions or lowering their cost and energy profile. The projects are backed by long-term contracts, which is a win-win for the customer and for AEP.
AEP OnSite Partners is building a portfolio of distributed energy solutions and currently has 18 solar projects in operation in eight states (California, Ohio, Hawaii, New York, New Hampshire, Minnesota, New Jersey and Vermont). Projects currently in operation include customer-sited solar projects, behind-the-meter storage assets and a customer-sited substation. The company has eight additional customer-sited solar projects under construction, totaling 22.8 megawatts-direct current in five states (Colorado, Florida, New Jersey, New York and Ohio). Most of OnSite’s investments are outside of AEP’s traditional service territory.
AEP Renewables develops and/or acquires large-scale renewable projects backed with long-term contracts. The company has acquired a 50-megawatt-AC (MW-AC) solar facility in Nevada and a 20-MW-AC solar facility in Utah.
Boulder Solar II is a 50-MW-AC solar facility in Nevada that began commercial operation in January 2017. The power it generates is contracted to Berkshire Hathaway Energy’s NV Energy under a 20-year agreement. The Pavant Solar III solar facility is located in Utah and was placed in service in December 2016. The power it generates is contracted to Berkshire Hathaway Energy’s Rocky Mountain Power under a 20-year agreement.