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June 1, 2022

SWEPCO seeks approval to acquire renewable energy projects in US

The three projects will be built by Invenergy and represent a $2.2bn investment by SWEPCO in clean resources.

Southwestern Electric Power (SWEPCO), a subsidiary of American Electric Power (AEP), is seeking approval to acquire three renewable energy projects from the utility regulators of Arkansas, Louisiana and Texas.

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The company aims to acquire Mooringsport, a 200MW solar farm in Caddo Parish, Louisiana; and Diversion, a 200.6MW wind facility in Baylor County, Texas.

SWEPCO also seeks to purchase Wagon Wheel, a 598.4MW wind farm in Garfield, Kingfisher, Logan, Payne and Noble counties in Oklahoma.

The three projects will be developed by Invenergy and represent a $2.2bn investment in ‘clean, cost-effective’ resources, according to AEP.

Once the company obtains regulatory approval, it plans to file an application with the Federal Energy Regulatory Commission (FERC) for the transfer of these projects from Invenergy.

AEP chairman, president and CEO Nicholas Akins said: “This investment is another key step in SWEPCO’s efforts to secure renewable, affordable energy and achieve a more balanced fuel mix.

“AEP remains focused on adding approximately 16GW of regulated renewables to our generation portfolio by 2030 and reaching net-zero carbon emissions by 2050.”

The Diversion wind facility will be the first of the projects to reach the commercial operation phase in December 2024, followed by Mooringsport and Wagon Wheel in December 2025.

As a part of its long-term strategy, SWEPCO aims to ensure that more than one-third of its Southwest Power Pool (SPP) accredited capacity is from renewable energy sources.

SWEPCO president and chief operating officer Malcolm Smoak said: “SWEPCO’s analysis of our generation needs showed that the lowest cost, best value option for capacity was adding wind and solar resources.

“We have worked to balance the remaining life and economic viability of each of our generating units with other options for generating power, including natural gas, as well as renewables, in a resource mix that provides the best value and generates benefits for the environment.”

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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