An Indiana-based subsidiary of power distribution company AES Corporation has announced it will buy a 195MW solar power project in the state in as part of its energy transition program.
Indianapolis Power and Light Company (IPL) said this week that developer Invenergy will oversee the construction of the project in Clinton County. Construction is expected to start in Autumn 2021, however, it is yet to be approved by the Indiana Utility Regulatory Commission. It is expected to come online in 2023.
IPL chief executive Kristina Lund said the subsidiary’s investment in a utility-scale solar project “allows us to diversify our electric generation portfolio, while still reliably serving our customers.”
“The recent advancements in digital technologies and renewable energy give our customers a wide variety of options when it comes to how they power their homes and businesses,” said Lund. “Gone are the days when customers had to choose between reliability, affordability and sustainability.”
The project is also expected to create 200 jobs during the construction phase.
Parent company AES Corporation announced plans to merge its US-facing clean energy business with independent power producer (IPP) sPower last November, creating a 12GW project pipeline in the process.
Indiana’s solar capacity is expected to blossom over the next three years as a number of utilities in the state have announced large-scale projects of their own. Northern Indiana Public Service Company (NIPSCO) secured build-transfer agreements with NextEra Energy Resources’ subsidiaries in October to develop 900MW of solar and 135MW of battery storage, and signed a Power Purchase Agreement (PPA) to offtake 280MW of Indiana solar power from Capital Dynamics at the end of last year. Meanwhile, up to 1GW of solar and storage is to be deployed in the state by CenterPoint Energy-owned Southern Indiana Gas and Electric Co. The company hopes to wind down 730MW of coal-fired power generation by 2024.