CenterPoint continues solar proposal blitz as Indiana utility implements 2020 IRP goals
CenterPoint Energy is continuing a big year for new solar generation with an application to the Indiana Utility Regulatory Commission (IURC) seeking approval for a 15-year, 185 MW solar PPA in Vermillion County and a 20-year, 150 MW solar PPA in Knox County.
In February, CenterPoint sought approval with the IURC for a 300 MW solar BTA and a 100 MW solar PPA.
All of the projects have their origins in the company’s 2019-2020 IRP which calls for CenterPoint’s portfolio to be composed of roughly two-thirds renewable energy sources, spokesperson Alyssia Oshodi told NPM.
The four proposed projects together represent a massive step for the utility into the solar generation space.
“That's kind of where we've ended up in terms of our long-term plan (which) is to ... introduce more renewables into that generation fleet. And so currently what we have in service in terms of solar is a 50 MW universal solar array in Troy, Indiana. And then we've got two smaller … 2 MW solar projects in Vanderburgh County where we're located,” Oshodi said. “So yes, I mean, this is going to be considerably more in terms of what we'll own from acquiring that 300 MW and then also acquiring the additional (output) in those PPAs.”
Capital Dynamics is building the 300 MW Posey County solar project, for which CenterPoint would enter into a Build-Transfer Agreement to acquire upon its completion. Capital Dynamics and the other co-developers on the project, Arevon Energy Management and Tenaska, expect a decision from the IURC late this year or early next, and anticipate operation of the project to start in 2023.
A request through Arevon regarding information about the project’s financing was not immediately returned.
Clenera is developing a 200 MW solar project in southwest Indiana. CenterPoint will contract for 100 MW of the project. Clenera also expects a decision in 4Q21 or 1Q22 and the start of operations in 2023. A request for financing information was not returned.
Oriden is developing a solar project in Vermillion County, from which CenterPoint will contract for 185 MW of output in a 15-year PPA, if approved. A spokesperson for Mitsubishi, which backs Oriden, said information on the project’s financing would be released at a later date.
Origis Energy is developing a solar project in Knox County, from which CenterPoint will contract for 150 MW in a 20-year PPA, if approved. Origis declined to comment on the project’s financing as it is still too early in its development.
Not all of CenterPoint’s recently proposed generation is of the renewable variety. In June, the company filed for approval of a USD 323m plan to install 460 MW of power through the addition of natural gas-fired combustion turbines at the site of its coal-fired A.B. Brown plant in Posey County. Units 1 and 2 are scheduled to be retired in 2023, according to the company.
The company’s 20-year IRP called for adding 700 to 1,000 MW of solar and solar-plus-storage and 300 MW of wind renewable resources to its portfolio.
“The way that the IRP was conducted and the results that came from that really pointed to adding in these additional renewables being the most cost effective and reliable option for our customers down here in southwestern Indiana,” Oshodi said.
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