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."
"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.
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."