American Electric Power has issued its new energy plan comprising carbon emission reduction and grid efficiency goals.
The energy provider plans to reduce carbon emissions by 60% by 2030 and by 80% by 2050, from 2000 levels.
The utility’s Strategic Vision for a Clean Energy Future 2018 includes increases in investments in renewable energy resources (wind, solar and gas), energy distribution and transmission systems, demand response and energy efficiency programmes, and advanced technologies.
$13 billion in investments will be directed towards improving energy transmission and distribution systems over the next three years. This is expected to increase the resiliency and efficiency of the grid network.
American Electric Power and RE investments
Approximately $1.2 billion will be invested in contracted renewables and renewables integrated with energy storage between 2018 and 2020.
Investments in clean energy generation will include adding 3,065MW of solar generation and 5,295 MW of wind generation by 2030.
Pending approval is a $4.5 billion, 2,000MW wind farm project in Oklahoma. If approved , the Wind Catcher Energy wind farm will deliver nearly 9 million megawatt-hours of low-cost wind energy per annum.
Investments in renewable energy generation will help American Electric Power to secure its energy supply, as well as reduce its carbon footprint.
The utility company has since 2005 reduced its reliance on coal from 70% to 47% and increased natural gas energy generation from 19% to 27%.
The utility has increased its renewable generation capacity from 4% in 2005 to 13%.
Carbon emissions have decreased by 44% since 2000.
Nicholas K. Akins, CEO at American Electric Power, said: “Our customers want us to partner with them to provide cleaner energy and new technologies, while continuing to provide reliable, affordable energy. Our investors want us to protect their investment in our company, deliver attractive returns and manage climate-related risk. This long-term strategy allows us to do both.
“This transition to a more balanced resource portfolio will help mitigate risk for our customers and shareholders alike and ensure a more resilient and reliable energy system into the future.”