Vistra Energy Racks Up Solar, BESS Projects as Coal Plants Close

Researched by Industrial Info Resources (Sugar Land, Texas)--Vistra Energy Corporation (NYSE:VST) (Irving, Texas) is joining the wave of U.S.-based power-generation companies to aim for net-zero carbon emissions by 2050. Following improved year-over-year results for first-quarter 2022, executives at Vistra said the company already has 2.9 gigawatts (GW) of zero-carbon generation online, and expects to have 7.3 GW online by 2026. Much of this growth is attributed to a swath of solar and battery energy-storage system (BESS) projects. Industrial Info is tracking about $4.8 billion worth of active projects from Vistra, nearly 90% of which can be found in Texas, Illinois and Ohio.

Click on the image at right for a graph detailing Vistra's active projects, by type.

Executives said in a quarterly earnings-related press release that Vistra is continuing toward its goal of a zero-carbon growth pipeline, as it finished construction last month on the Brightside and Emerald Grove solar facilities in Beeville and McCamey, Texas, respectively, which brought a combined 158 megawatts (MW) of solar generation and 260 MW of battery storage to the grid managed by the Electric Reliability Council of Texas (ERCOT). Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Brightside and Emerald Grove projects.

Vistra's capital expenditures for full-year 2022 are expected to total $1.81 billion, according to guidance in the company's earnings-related press release for the first quarter.

Vistra began construction in March on two solar projects in northeastern Texas: the $220 million Oak Hill Solar Plant in Henderson, and the $220 million Forest Grove Solar Plant in Athens, each of which is expected to generate 200 MW from photovoltaic (PV) panels provided by First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona). The Oak Hill project is located on the site of a coal mine that Vistra subsidiary Luminant Energy retired in 2016; both projects are set to wrap up toward the end of the year. Subscribers can read detailed reports on the Oak Hill and Forest Grove projects.

Across Illinois, Vistra is considering a series of proposed solar projects that would include BESS construction. All remain in the market analysis or economic evaluation stages, but the possibilities include:

• a 100-MW solar facility at the Duck Creek Energy Center in Canton; see project report
• an 88-MW solar facility at the Kincaid Power Station in Kincaid; see project report
• a 68-MW solar plant in Baldwin; see project report
• a 52-MW solar facility at the Newton Power Station in Newton; see project report
• a 50-MW solar plant in Hennepin; see project report
• a 44-MW solar plant in Coffeen; see project report

BESS projects are showing up more frequently on project slates for U.S.-based energy companies, as the Biden administration and numerous state governments are supporting energy-storage development through incentives and grants. For more information on these trends, see May 5, 2022, article - $3 Billion Grant Program to Charge Up U.S. Lithium-Ion Battery Production, and April 29, 2022, article - North American Electric Utilities Still Seeking Renewable Energy.

For details on other energy companies to recently announce additional or accelerated BESS developments, see May 6, 2022, article - Dominion Energy Touts Far-Ranging Investments in Decarbonization, T&D, and April 29, 2022, article - Southern Company Defends Coal, Gas Projects as it Pushes for 'Net Zero'.

Vistra also is looking into a proposed carbon capture and sequestration (CCS) project at its Oak Grove Generating Station in Franklin, Texas, which would eliminate 10,000 of the 13,000 tons of CO2 produced each day at the 1,795-MW, coal-fired facility. The project is in its preliminary stages, where plenty of factors can delay or alter any eventual investment, but Vistra is just one of several U.S.-based energy companies turning to CCS as a potential long-term investment. Subscribers can learn more from Industrial Info's project report, and read about other companies with similar plans in the May 3, 2022, article - Capital Power, WEC Energy Prepare to Bring CCS, LNG Projects Online, and the April 28, 2022, article - Valero, Occidental Face New Pressure on Carbon Emissions, CCS.

Most of the remainder of Vistra's investment in coal-fired facilities is related to their closures, or the closure of their ash ponds. Among those set to begin decommissioning and dismantlement in the coming years are the William H. Zimmer Power Station in Moscow, Ohio, which generates 1,394 MW; the Miami Fort Power Station in North Bend, Ohio, which generates 1,024 MW; and the Joppa Generating Station in Joppa, Illinois, which generates 1,014 MW.

In 2020, Vistra announced the Zimmer, Miami Fort and Joppa facilities would close by 2027; by mid-2021, the company had moved all three closure dates up to mid-2022. Subscribers can read detailed project reports on the Zimmer, Miami Fort and Joppa closures.

Vistra expects to retire about 8 gigawatts of fossil-fueled power plants by 2027.

For first-quarter 2022, Vistra reported a net loss of $284 million, compared with a net loss of $2.04 billion in first-quarter 2021. Operating revenues were reported to be $3.13 billion, a 2.56% decrease from the same period last year.

Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.