AEP says the three wind farms are estimated to cost nearly $2bn and could save $3bn for its customers
Image: AEP seeks regulatory approval to acquire 1.4GW wind farms. Photo: Courtesy of VIVIANE MONCONDUIT/Pixabay.
American Electric Power (AEP) stated that its subsidiaries Public Service Co. of Oklahoma (PSO) and Southwestern Electric Power Co. (SWEPCO) are seeking regulatory approvals to buy three wind farms totaling 1.48GW of capacity.
If approvals are received, the wind farms are expected to cost about $2bn (£1.6bn) and they could save about $3bn (£2.4bn) in a net cost for SWEPCO and PSO customers over the next 30 years.
As per the company, the three wind farms that are presently under development in Oklahoma include a 999MW wind facility being built near Weatherford, a 287MW wind farm being built southwest of Enid, and a 199-MW facility being built south of Alva. The three projects are being developed by Invenergy.
Selected after a competitive Request for Proposals (RFPs) to procure low-cost wind generation, the projects will supply green electricity to PSO and SWEPCO customers.
The projects are yet to receive regulatory approvals in Arkansas, Louisiana, Oklahoma and Texas, along with approval from the Federal Energy Regulatory Commission.
Out of the three wind farms, the third wind farm is set to be completed by the end of next year and the other two projects are expected to be completed by the end of 2021.
The projects to be acquired by AEP will generate over 5.7 million MWh of new wind energy annually
When operational, these three wind farms are expected to generate more than 5.7 million MWh of new wind energy annually, serving customers across Arkansas, Louisiana, Oklahoma and Texas.
AEP chairman, president and CEO Nicholas Akins said: “AEP continues to add clean, renewable generation to our power plant fleet, driven by the expectations of our customers and technology advances. Purchasing these wind facilities is consistent with our strategy of investing in the energy resources of the future, and it will save our customers money while providing significant economic benefits to local communities.
“This renewable generation will enable us to provide our PSO and SWEPCO customers with the affordable, reliable and clean power they have said they want.”
If approved, SWEPCO would own 810MW of wind generation, which is 55% of the projects. PSO would own the remaining 45% or 675MW of wind generation.