AEP Accelerates Carbon Dioxide Emissions Reduction Target
September 19, 2019 -- American Electric Power is cutting carbon dioxide emissions faster than anticipated and has revised its 2030 reduction target to 70 percent from 2000 levels. The company’s previous target was a 60 percent reduction from 2000 levels by 2030.
AEP also is confident that it will cut carbon dioxide emissions by more than 80 percent from 2000 levels by 2050.
“AEP’s overall strategy is focused on modernizing the power grid, expanding renewable energy resources and delivering reliable energy to our customers. Our transition to a cleaner, more balanced resource mix helps mitigate risk for our customers and shareholders alike and will ensure a more resilient and reliable energy system into the future,” said Nicholas K. Akins, AEP chairman, president and chief executive officer.
“We’ve made significant progress in reducing carbon dioxide emissions from our power generation fleet and expect our emissions to continue to decline. Our aspirational emissions goal is zero emissions by 2050. Technological advances, including energy storage, will determine how quickly we can achieve zero emissions while continuing to provide reliable, affordable power for customers,” Akins said.
AEP will achieve future carbon dioxide emissions reductions through a variety of actions including investments in renewable generation, investments in transmission and distribution technologies to enhance efficiency, and expanded demand response and energy efficiency programs.
AEP’s resource plans include adding more than 8,600 megawatts (MW) of new wind and solar generation to serve the company’s regulated utility customers by 2030. The company currently is seeking regulatory approval to add 1,485 megawatts of new wind generation to serve customers in Arkansas, Louisiana, Oklahoma and Texas.
AEP also is investing in renewable energy in competitive markets. Between 2019 and 2023, the company plans to invest approximately $2.2 billion in contracted renewables and renewables integrated with energy storage. AEP already added 1,302 megawatts of contracted renewables to its portfolio this year.
To enhance the efficiency and resiliency of the energy delivery system, AEP’s long-term strategy includes plans to invest approximately $25 billion over the next 5 years in its transmission and distribution systems.
AEP has factored future carbon regulations into the company’s evaluation of generation resource options for many years and will continue to do so. The company already has cut its carbon dioxide emissions by 59 percent since 2000.
AEP’s generation capacity has gone from 70 percent coal-fueled in 2005 to 45 percent today. Its natural gas capacity increased from 19 percent in 2005 to 28 percent today, and its renewable generation capacity has increased from 4 percent in 2005 to 17 percent today.
More information about AEP’s clean energy strategy is available at https://www.aep.com/investors/ESG.
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