AES' Largest Unit Files Resource Plan to Boost Renewable Generation

Researched by Industrial Info Resources (Sugar Land, Texas)--The largest unit of AES Corporation (NYSE:AES) (Arlington County, Virginia) hopes to add 1,300 megawatts (MW) of renewables by 2027, including wind, solar and battery energy storage systems (BESS), according to an integrated resource plan (IRP) filed by AES Indiana on December 2. Industrial Info is tracking more than $800 million worth of active projects attributed to AES Indiana, out of more than $9 billion worth from AES Corporation across the U.S. and $21.3 billion worth globally.

Also as part of the IRP filed with the Indiana Utility Regulatory Commission, AES Indiana would monitor "emerging technologies such as green hydrogen, small modular reactors and carbon capture, for inclusion in future planning including the next IRP in 2025," according to a related press release.

The unit aims for 85% to 90% of power generation in its portfolio to be from renewable sources in the next 20 years, according to the press release.

Among the renewable energy projects from AES Indiana are a $297 million grassroot solar farm and BESS project in Petersburg, Indiana, 125 miles southwest of downtown Indianapolis, which is designed to generate as much as 430 MW by utilizing photovoltaic (PV) solar panels and energy storage. A unit of NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida), NextEra Energy Resources LLC (Juno Beach), is serving as project developer. Construction kicked off in October, with completion scheduled for October 2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a detailed project report.

Also underway is construction of the $190 million Hardy Hills Solar Plant in Frankfort. The plant would feature a generating capacity of 195 MW by utilizing silicon PV panels on a single-axis, ground-mounted tracking system, upon completion in late 2023. Invenergy LLC (Chicago, Illinois) is the project developer. Click here for the detailed project report.

AES Indiana's efforts are in line with its parent company's work to meet burgeoning demand for renewable generation. At the time of AES Corporation's third-quarter earnings release in early November, the company said it had signed 3,178 MW of long-term renewables and energy storage power-purchase agreements (PPA) year-to-date 2022, including 1,625 MW of solar, energy storage and wind in the U.S.

AES Corporation also noted a 64-GW pipeline of future projects, 51 GW of which was in the U.S.

On the earnings conference call, Executive Vice President and Chief Financial Officer Steve Coughlin said the following regarding capital expenditures: "In summary, nearly three-fourths of our investments this year are going to grow AES' renewables businesses in our U.S. utilities, reflecting our commitment to continue executing on our portfolio transformation. In addition, approximately 70% of our planned future investments are targeted for our U.S. subsidiaries, which will contribute to our goal of more than 50% of our earnings coming from the U.S. in 2023."

Before the end of 2022, the parent company will wrap up construction of a $170 million unit addition at the Great Cove Solar Plant in Needmore, Pennsylvania, which is expected to add 150 MW to the company's portfolio. Click here for the project report.

While solar generation accounts for the highest proportion of AES' project activity in terms of fuel type, Industrial Info is tracking two major grassroot windfarm projects outside of Flagstaff, Arizona: the 477-MW Chevelon Butte Windfarm in Winslow, which is on track for completion in March 2023, and in the planning stage, the West Camp Windfarm-plus-BESS project in Joseph City--which would generate 500 MW and store 250 MW of wind power. Both projects will utilize more than 100 turbines made by General Electric (NYSE:GE) (Boston, Massachusetts). Subscribers can see detailed reports on the Chevelon Butte and Joseph City projects.

Subscribers to the GMI project and plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of plant profiles.

Subscribers can click here for a full list of active projects from AES globally.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).