As AEP seeks to balance its resource portfolio, we are looking beyond our traditional service territory for investments. Our advantage is that we bring a low cost of capital and project structuring expertise to create solutions that are attractive to customers. This is especially appealing to companies, universities and municipalities that often have their own renewable energy goals.
Between 2018 and 2020, AEP intends to invest up to $1.2 billion in contracted renewables to provide the energy solutions that customers want and deliver a cleaner emission profile in the process.
We are doing this through our two energy subsidiaries – AEP OnSite Partners and AEP Renewables – that work with large users of energy to help them achieve their specific goals. Activities include working directly with wholesale and large retail customers to provide tailored solutions that include distributed solar, wind, combined heat and power, energy storage, waste heat recovery, energy efficiency, peaking generation and other forms of cost-reducing energy technologies.
OnSite Partners offers energy solutions for customers that could include applying a technology, such as combined heat and power, reducing emissions or lowering a customer’s cost and energy profile. The company is building a portfolio of distributed energy solutions and currently owns projects operating in 12 states, including 57 MW of installed solar capacity, and another 19 MW of solar projects under construction.
Many of the investments made by AEP Renewables and AEP OnSite Partners are outside of our traditional service territory, which allows us to grow beyond our regular footprint. For example, OnSite Partners has joined with the unregulated subsidiary of PNM Resources to invest in additional renewable generation solutions for customers and other public power entities, primarily in the state of New Mexico.
AEP Renewables invests in large-scale renewable projects backed by long-term contracts. During 2016 and 2017, AEP Renewables acquired 90 MW of solar projects in California, Nevada and Utah.
In early 2018, AEP’s competitive business formed a joint partnership to repower 311 MW at two previously wholly-owned Texas wind farms. AEP now owns 79.9 percent of each wind farm.The non-affiliated partner contributed full turbine sets to each wind farm in exchange for a 20 percent interest in the partnership.