CenterPoint Energy seeks approval for 400 megawatts of renewable energy serving southwestern Indiana
CenterPoint Energy (CNP) has announced its intentions to acquire a 300-megawatt solar array in Indiana, seeking regulatory approval from the Indiana Utility Regulatory Commission (IURC). This initiative is a part of its long-term plan for electric generation transition, aiming to add an additional 100 MW through a power purchase agreement. The combined 400 MW solar capacity is projected to reduce operational emissions by 70% by 2035, generating enough power for over 50,000 homes. A decision from the IURC is anticipated in late 2021 or early 2022, with construction potentially creating 250 jobs and contributing $47.8 million to local economies.
- Acquisition of 300 MW solar array supports emission reduction goal of 70% by 2035.
- Projected to generate power for over 50,000 households, enhancing sustainability efforts.
- Construction expected to create approximately 250 full-time jobs.
- $47.8 million economic contribution to Posey County during construction phase.
- Awaiting approval from the IURC could delay project timelines.
- Potential risks associated with regulatory uncertainties and market conditions.
EVANSVILLE, Ind., Feb. 23, 2021 /PRNewswire/ -- CenterPoint Energy (CNP) today announced its Indiana-based electric and natural gas business, CenterPoint Energy Indiana South, is seeking approval from the Indiana Utility Regulatory Commission (IURC) to enter into an agreement on the acquisition of a 300-megawatt (MW) solar array as part of the company's long-term electric generation transition plan announced in June 2020. The company is also requesting approval to enter into a power purchase agreement (PPA) for an additional 100 MWs of solar energy.
CenterPoint Energy is seeking to enter into an agreement with Capital Dynamics, the company that will build the 300-MW utility-owned project in Posey County, Ind. Arevon Energy Management and energy company Tenaska are co-developing the project. CenterPoint Energy is also proposing to purchase additional solar power from Clēnera, which is developing a solar project in Southwestern Indiana, under a 25-year contract. The addition of the 400MW of solar through the Capital Dynamics and PPA agreements supports CenterPoint Energy's goal to reduce operational emissions by 70 percent by 2035, avoiding approximately 700,000 tons of CO2 each year after completion.
Together, the 400 MWs represent the next component of the company's Smart Energy Future plan to meet stakeholder sustainability goals and implements the most economic path forward as outlined in last summer's Integrated Resource Plan (IRP). The plan details an all-of-the-above approach including renewables, natural gas and coal to ensure regional reliability and includes flexible generation to meet seasonal peak loads.
"As one of the largest single-sited solar arrays in the Midwest, these significant renewable resources would serve our local electric customers, providing a low-cost, stable energy option," said Steve Greenley, Senior Vice President, Generation Development for CenterPoint Energy. "We are confident we have chosen the right companies with the right experience for projects of this scale."
Following the completion of the most recent IRP in June 2020, which was greatly influenced by customer input and a request for proposal including all sources of generation, CenterPoint Energy has been working with Capital Dynamics to explore opportunities for the eventual development of the Posey County property. Following all required approvals, the solar array will be located on approximately 2,500 acres and will consist of more than 730,000 solar panels. The facility is expected to be fully operational in 2023, generating enough power to meet the needs of more than 50,000 households per year and helping large customers achieve their individual sustainability goals.
"Capital Dynamics is proud to support CenterPoint Energy's efforts to deliver low-cost, sustainable energy generation to its customers in Posey County," said Martin Hahn, CEO of Capital Dynamics. "The project is expected to provide substantial economic benefits to local communities and help the state of Indiana take another step towards meeting its clean energy and climate goals. We thank our partners in Posey County for supporting this important initiative."
"We are pleased to be working with CenterPoint Energy, Capital Dynamics and Tenaska on the construction of a 300 MW Posey County solar project," said Tiago Sabino Dias, President and CEO of Arevon Energy Management, a specialized company with a master service agreement to provide origination services for Capital Dynamics' Clean Energy Infrastructure platform. "We applaud CenterPoint Energy for its commitment to introducing more renewable energy to its electric footprint in Indiana and we're proud to contribute to the future of cleaner energy for Indiana."
Construction of the solar project with Capital Dynamics will begin upon the receipt of necessary authorization and permits from the IURC. A decision on CenterPoint Energy's request is expected in late 2021 or early 2022. The initial construction phase will require establishing a sub-station to interconnect with CenterPoint Energy's power grid.
"The construction of this solar array and the additional energy obtained through the power purchase agreement will further CenterPoint Energy's Smart Energy Future strategy. Ensuring continued reliability, addressing sustainability needs for the region, and tailored to utility ownership values, these projects will contribute significantly to CenterPoint Energy's commitment to deliver clean and reasonably priced energy to its customers," said Greenley.
During the proposed 14- to 18-month construction timeline, the project will provide approximately 250 full-time jobs. Additionally,
Construction on the secondary solar array will begin upon receipt of necessary authorization and permits, with a decision on CenterPoint Energy's request also expected in late 2021 or early 2022. Scheduled to be in service by 2023, CenterPoint Energy will contract 100 MW of the total 200-MW array, which will generate enough power to meet the needs of more than 18,500 homes per year.
Jared McKee, Vice President of Business Development for Clēnera said, "We thank CenterPoint Energy for partnering with Clēnera to acquire clean energy from one of our solar projects. Our team looks forward to the completion of this solar project and assisting CenterPoint Energy in meeting the future energy needs of its southwestern Indiana electric customers."
Greenley added, "CenterPoint Energy thanks Posey County representatives and other project stakeholders for their support of these projects and is pleased to be working with trusted developers in pursuit of continued renewable growth in the communities we serve."
Forward Looking Statement
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events, such as the CenterPoint Energy's plans to transition to more renewable generation resources, its carbon emissions reduction targets, the IURC's approval process for the projects and timing thereof, the expected capacity of the facilities, the anticipated benefits to customers and the county where such facilities are located, including the costs of such renewable energy, the construction of the facilities and related timing, and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the impact of COVID-19; (2) financial market conditions; (3) general economic conditions; (4) the timing and impact of future regulatory and legislative decisions; (5) effects of competition; (6) weather variations; (7) changes in business plans; and (8) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
About CenterPoint Energy
As the only investor-owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of September 30, 2020, the company owned approximately
About Capital Dynamics
Capital Dynamics is an independent global asset management firm focusing on private assets including private equity, private credit and clean energy infrastructure. Capital Dynamics Clean Energy Infrastructure is one of the largest renewable energy investment managers in the world with USD 6.6 billion AUM and has one of the longest track records in the industry. The CEI strategy was established to capture attractive investment opportunities in the largest and fastest growing sector of global infrastructure – proven renewable energy technologies, primarily in North America and Europe, across solar, onshore wind, energy storage and related infrastructure with a focus on both utility-scale and distributed generation technologies. The CEI platform's fully integrated asset management affiliate provides highly-specialized services to ensure optimal performance and value from projects. The CEI strategy currently manages 7.9 GWdc of contracted gross power generation across more than 150 projects in the United States and Europe and is one of the top 3 global solar PV owners. Since the CEI platform's inception in 2010, over 17 million metric tons of greenhouse gas emissions have been avoided as a result of the firm's renewable investments. This is equivalent to the power needed to supply more than 3 million homes or passenger vehicles for one year. In 2020, the CEI strategy received top rankings from GRESB (the ESG benchmark for real assets) for commitment to sustainability, and in 2019 awarded Global PE Energy Firm of the Year by Private Equity International. For more information, please visit: www.capdyn.com.
About Arevon Energy Management
Arevon Energy Management (AEM) is an independent company with a partnership with the Capital Dynamics' Clean Energy Infrastructure platform. AEM's team of experts work directly with utilities, municipalities, cooperatives, and large corporations to jointly develop clean energy strategies that exceed their economic and sustainability objectives. AEM is a one-stop shop for holistic solutions you can count on for the coming decades. For more information, please visit www.arevonenergy.com.
About Clēnera
Clenera, LLC ("Clēnera") is a privately-held renewable energy company headquartered in Boise, Idaho. Clēnera acquires, develops, builds and manages utility-scale solar farms and energy storage facilities throughout the United States. Combining breakthrough technology with a deeply integrated team approach, Clēnera provides reliable, affordable energy systems and helps its utility partners become clean energy leaders in their communities. Clēnera's current operating portfolio exceeds 1.4 GW, with more than 13 GW of solar and storage assets in development. Learn more at www.clenera.com.
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