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Released November 09, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--On Monday, PPL Corporation (NYSE:PPL) (Allentown, Pennsylvania) announced its subsidiaries Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) received approval to retire 600 megawatts (MW) of aging coal generation and more than 50 MW of aging peaking units by 2027 and replace the generation with a cleaner energy mix such as natural gas, solar and battery storage. Although the originally proposed $2.1 billion investment plan, including $1.6 billion through 2026, was not fully approved, the expected investment is "materially consistent" with the original plan.
The Kentucky Public Service Commission (KPSC) sanctioned an approximately 640-megawatt (MW) combined-cycle natural gas unit at LG&E's Mill Creek Power Station in Louisville, Kentucky. The project remains in its early-analysis phase, where plenty of factors can change--or eliminate--projected spending. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here to read a detailed project report.
The approvals also include more than 1,000 MW of solar and energy storage by 2027, including two projects in Mercer County expected to kick off in 2024 and wrap up in mid-2026: a 120-MW solar power array, and a 125-MW battery energy storage system (BESS) on site at LG&E's E W Brown Power Station. The BESS would utilize Tesla Incorporated's (NASDAQ:TSLA) (Austin, Texas) "Megapack" lithium-ion battery containers. Subscribers can learn more by viewing information on the solar and BESS projects. The KPSC also approved the acquisition of another unnamed solar array in Mercer County.
PPL said the utilities also are authorized, "subject to certain conditions," to secure four power purchase agreements for more than 600 MW of additional solar generation and to retire two coal units, Mill Creek 1 and 2, totaling 600 MW, and three small natural gas turbines.
However, the KPSC deferred the retirement of two other aging coal-fired units: Unit 2 at the Ghent Power Station and Unit 3 at the E W Brown Power Station, "due to uncertainty around pending environmental regulations," according to a PPL press release. PPL added the KPSC also denied the companies' request to build a second combined-cycle natural gas plant, finding that construction of a second unit should be deferred to provide for an in-service date in 2030, rather than 2028 as initially proposed. Subscribers to the Power Plant Database can click here for a profile on the Ghent plant.
PPL expects capital investment of $2.5 billion this year and about $12 billion in "infrastructure improvements from 2023 through 2026 across its regulated operations."
"While the KPSC did not approve our entire request, which we believe offered the best and least-cost approach for our customers, the decision will ensure we can continue to reliably meet our customers' future energy needs, further diversify our Kentucky generation, advance a cleaner energy mix and support the state's continued growth and economic development," said PPL Chief Executive Officer Vincent Sorgi in the press release.
Natural gas-fired power plants accounted for 25% of Kentucky's in-state electricity generation in 2022, more than double the share from five years earlier, according to the U.S. Energy Information Administration (EIA); about 68% of the state's utility-scale net generation in 2022 was coal-fired, the third-largest share of any state after West Virginia and Wyoming.
Hydropower accounts for nearly all the state's renewable electricity generation, according to the EIA. The EIA notes 11 hydroelectric dams produced about 6% of the state's total electricity net generation in 2022.
Among the renewable-generation projects under construction in Kentucky is National Grid plc's (NYSE:NGG) (London, England) Unbridled Solar Plant in Henderson, which would utilize more than 300,000 photovoltaic (PV) solar modules from First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona) to generate 160 MW. Wanzek Construction (Fargo, North Dakota) is providing engineering, procurement and construction services. Construction is expected to wrap up in mid-2024.
Also underway is the U.S. Army Corps of Engineers' refurbishment of four hydro turbines at the Barkley Hydropower Station near Kuttawa. The project is expected to wrap up in 2026. Subscribers can read detailed reports on the solar and hydro projects.
Subscribers to the Power GMI Database can click here for the reports on all of the projects discussed in this article and here for the plant profiles.
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 more than 200,000 current and future projects worth $17.8 Trillion (USD).
The Kentucky Public Service Commission (KPSC) sanctioned an approximately 640-megawatt (MW) combined-cycle natural gas unit at LG&E's Mill Creek Power Station in Louisville, Kentucky. The project remains in its early-analysis phase, where plenty of factors can change--or eliminate--projected spending. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here to read a detailed project report.
The approvals also include more than 1,000 MW of solar and energy storage by 2027, including two projects in Mercer County expected to kick off in 2024 and wrap up in mid-2026: a 120-MW solar power array, and a 125-MW battery energy storage system (BESS) on site at LG&E's E W Brown Power Station. The BESS would utilize Tesla Incorporated's (NASDAQ:TSLA) (Austin, Texas) "Megapack" lithium-ion battery containers. Subscribers can learn more by viewing information on the solar and BESS projects. The KPSC also approved the acquisition of another unnamed solar array in Mercer County.
PPL said the utilities also are authorized, "subject to certain conditions," to secure four power purchase agreements for more than 600 MW of additional solar generation and to retire two coal units, Mill Creek 1 and 2, totaling 600 MW, and three small natural gas turbines.
However, the KPSC deferred the retirement of two other aging coal-fired units: Unit 2 at the Ghent Power Station and Unit 3 at the E W Brown Power Station, "due to uncertainty around pending environmental regulations," according to a PPL press release. PPL added the KPSC also denied the companies' request to build a second combined-cycle natural gas plant, finding that construction of a second unit should be deferred to provide for an in-service date in 2030, rather than 2028 as initially proposed. Subscribers to the Power Plant Database can click here for a profile on the Ghent plant.
PPL expects capital investment of $2.5 billion this year and about $12 billion in "infrastructure improvements from 2023 through 2026 across its regulated operations."
"While the KPSC did not approve our entire request, which we believe offered the best and least-cost approach for our customers, the decision will ensure we can continue to reliably meet our customers' future energy needs, further diversify our Kentucky generation, advance a cleaner energy mix and support the state's continued growth and economic development," said PPL Chief Executive Officer Vincent Sorgi in the press release.
Natural gas-fired power plants accounted for 25% of Kentucky's in-state electricity generation in 2022, more than double the share from five years earlier, according to the U.S. Energy Information Administration (EIA); about 68% of the state's utility-scale net generation in 2022 was coal-fired, the third-largest share of any state after West Virginia and Wyoming.
Hydropower accounts for nearly all the state's renewable electricity generation, according to the EIA. The EIA notes 11 hydroelectric dams produced about 6% of the state's total electricity net generation in 2022.
Among the renewable-generation projects under construction in Kentucky is National Grid plc's (NYSE:NGG) (London, England) Unbridled Solar Plant in Henderson, which would utilize more than 300,000 photovoltaic (PV) solar modules from First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona) to generate 160 MW. Wanzek Construction (Fargo, North Dakota) is providing engineering, procurement and construction services. Construction is expected to wrap up in mid-2024.
Also underway is the U.S. Army Corps of Engineers' refurbishment of four hydro turbines at the Barkley Hydropower Station near Kuttawa. The project is expected to wrap up in 2026. Subscribers can read detailed reports on the solar and hydro projects.
Subscribers to the Power GMI Database can click here for the reports on all of the projects discussed in this article and here for the plant profiles.
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 more than 200,000 current and future projects worth $17.8 Trillion (USD).
