Lightsource bp and AEP Energy Partners Sign Power Contract for 188 Megawatt Solar Farm in Indiana

Rhea-AI Summary

Lightsource bp and AEP Energy Partners have signed a power purchase agreement for a 188 MW solar project in New Carlisle, Indiana. The Honeysuckle Solar project aims to generate enough energy annually to power 27,000 U.S. homes and reduce carbon dioxide emissions by 204,000 metric tons. It is expected to bring $30 million in revenue to the local community and create around 200 construction jobs. Construction is underway with operations expected to start in 2024. The project will support local economies and utilize low-carbon materials from U.S. manufacturers, reinforcing a commitment to sustainable energy solutions.

Positive

• Project will generate enough energy for 27,000 homes annually.
• Expected to create approximately 200 construction jobs.
• Will bring an estimated $30 million revenue boost to the local economy.
• Reduce carbon emissions by 204,000 metric tons each year.
• Supports local manufacturers and low-carbon products.

Negative

• None.

• Estimated to abate 204,000 metric tons of carbon dioxide (CO2) emissions each year, equivalent to annual emissions from about 44,000 fuel burning cars
• Will stimulate local economy by bringing an estimated $30 million in new revenue to the community, along with creating approximately 200 construction jobs

SOUTH BEND, Ind.--(BUSINESS WIRE)-- Global solar leader Lightsource bp and AEP Energy Partners (AEPEP), a subsidiary of American Electric Power (Nasdaq: AEP) and one of the largest wholesale energy suppliers in the country, have signed a power purchase agreement (PPA) for a 188 megawatt (dc) solar project located in New Carlisle about 10 miles west of South Bend, Indiana.

Once complete, the Honeysuckle Solar project will generate enough clean energy annually to power 27,000 U.S. homes and will reduce carbon dioxide emissions by 204,000 metric tons each year.

“AEP Energy Partners is proud to provide customers with integrated, carbon-free energy that fulfills their sustainability goals, delivers long-term price stability, and benefits the environment. Our partnership with Lightsource bp demonstrates our commitment to the development of new renewable resources that both empower local communities and support a cleaner, brighter energy future,” said Greg Hall, Executive Vice President & Chief Commercial Officer, AEP.

Lightsource bp will finance, build, own and operate the facility and sell the solar energy it generates to AEP Energy Partners under a long-term PPA. Construction of the project has been initiated on site, with commercial operation starting in 2024. South Bend based Inovateus Solar LLC is the construction contractor for the facility, with a focus on utilizing local labor for the mechanical, electrical and civil work on site.

“This power purchase agreement is a great example of how energy buyers with sustainability goals such as AEP Energy Partners can work with us to spur the buildout of new solar projects that will improve the health and energy security of communities across America while helping strengthen local economies. As the owner and operator of the Honeysuckle solar farm, we look forward to bringing economic and environmental benefits to the region, along with fostering community partnerships,” said Kevin Smith, Lightsource bp’s CEO of the Americas.

Economic benefits

The Honeysuckle solar farm will:

• Create approximately 200 direct construction jobs, primarily local, in addition to hundreds of U.S. jobs across the supply chain
• Support domestic manufacturers and low carbon products, with ultra-low carbon solar panels from First Solar, smart solar trackers from Array Technologies and steel from Nucor
• Bring $250 million of new, privately funded renewable energy infrastructure to Indiana
• Provide an estimated $30 million boost to the local community over the project life – additional funding for local schools and other services without a tax increase on its citizens
• Deliver a $3 million economic development payment to St. Joseph County to be allocated by county officials as they determine best serves the community.

Protecting the environment

Lightsource bp and AEP Energy Partners have a common mission to deliver affordable, reliable electricity to communities, while protecting the environment. While the primary purpose of solar is to reduce carbon emissions from electricity generation in order to mitigate climate change, Lightsource bp extends the benefits of solar energy further through their Responsible Solar approach. The goal is to build multiuse solar projects on which clean energy generation, agriculture, habitat and biodiversity enhancement share the land under and around the solar panels.

As part of this Responsible Solar approach, an action plan is underway for the Honeysuckle Solar project to achieve biodiversity net gains and foster pollinator habitat – ensuring that Honeysuckle will be a pollinator friendly solar farm.

Learn more about multiuse solar.

About Lightsource bp

Lightsource bp is a global leader in the development and management of solar energy and energy storage projects and a 50:50 joint venture with bp. For more than a decade, Lightsource bp has delivered affordable, safe and sustainable energy to businesses and communities around the world. Their team includes nearly 1,000 industry experts, working in 19 countries, providing full scope development for projects, from initial site selection, financing and permitting to long-term management of solar projects and energy sales to their customers. Lightsource bp in the U.S. is headquartered in San Francisco with development offices in Denver, Austin, Philadelphia and Atlanta and staff in more than 25 states. Since 2019, the team has brought into operation or initiated construction on 3.2 gigawatts of U.S. solar projects with capital costs of nearly $4 billion across 11 states in America. For more information visit www.lightsourcebp.com/us.

About AEP and AEP Energy Partners

American Electric Power (Nasdaq: AEP) subsidiaries AEP Renewables, AEP Energy, OnSite Partners, and AEP Energy Partners, deliver a wide array of innovative competitive energy solutions nationwide. As one of the largest wholesale suppliers in the country, AEP Energy Partners specializes in offering customized wholesale power supply products based on the specific needs of customers’ electric systems within ERCOT, MISO, PJM and SPP. AEP Energy Partners also sells renewable energy through long-term contracts with utilities, electric cooperatives, municipalities and corporate customers. With a commitment to a clean energy future, AEP’s competitive businesses currently own over 1,500 megawatts of wind, solar and energy storage on both a utility scale and distributed scale basis. Solving energy problems for customers, AEP OnSite Partners and its competitive affiliates own and operate over 75 behind-the-meter projects in 22 different states and have an active development pipeline across the U.S. As a competitive retail electricity and natural gas supplier, AEP Energy serves over 700,000 residential and business customers in 28 service territories in six states and Washington, D.C. Based in Columbus, Ohio, Chicago, Illinois and San Diego, California, AEP’s family of competitive companies takes pride in making it easy for customers and partners to buy, manage and use energy. Learn more about AEP Energy Partners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230223005791/en/

Media:

Mary Grikas

Mary.Grikas@lightsourcebp.com

Sarah Devine

sedevine@aep.com

614/716-2011

Source: Lightsource bp

FAQ

What is the Honeysuckle Solar project by AEP Energy Partners?

The Honeysuckle Solar project is a 188 MW solar project in New Carlisle, Indiana, aimed at generating enough energy for 27,000 homes and reducing carbon emissions by 204,000 metric tons annually.

How many jobs will the Honeysuckle Solar project create?

The project is expected to create approximately 200 construction jobs.

What economic impact will the Honeysuckle Solar project have on the local community?

It is estimated to bring about $30 million in new revenue to the local community over the project's life.

When is the commercial operation expected to start for the Honeysuckle Solar project?

Commercial operations for the Honeysuckle Solar project are expected to begin in 2024.

What environmental benefits does the Honeysuckle Solar project offer?

The project will significantly reduce carbon emissions and includes plans to enhance biodiversity and pollinator habitats.