Indianapolis Power & LIght launches request for proposals for 200 MW replacement generation

Published on December 20, 2019 by Chris Galford


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With two of its coal-fired units set to retire over the coming years, Indianapolis Power & Light Company (IPL) finds itself in need of replacement generation options, leading to a request for proposals (RFP) to the tune of 200 MW.

IPL’s preferred portfolio, laid out earlier this month, includes plans to diversify generation types, engage more renewable resources, all while keeping costs cost-effective. While keeping options open, IPL has indicated a preference toward a combination of energy efficiency, solar, storage, and wind. Its 2019 integrated resource plan was submitted to the Indiana Regulatory Commission earlier this week, covering a 20-year projection updated every three years. It also demonstrated the projected capacity shortfall, along with modeling assumptions and critical drivers going forward.

“Our 2019 integrated resource plan takes a balanced approach to delivering reliable, affordable and cleaner energy to our customers during a time of rapid change in the energy industry,” IPL President and CEO Vince Parisi said. “The Company’s preferred portfolio gives us a path to replace approximately 200 megawatts of generation capacity while maintaining flexibility, should future market conditions change. We’re asking bidders to bring us their most cost-competitive options that meet the needs and expectations of our customers and communities.”

IPL hopes this process will lead to replacement capacity by June 1, 2023, at which point both coal units will be closed, and IPL will likely begin experiencing a shortfall. Both units are stationed at the Petersburg Generating Station, but one will close in 2021 and the other in 2023. IPL’s current energy mix includes natural gas, coal, solar, wind, customer-owned renewable generation, demand response, energy efficiency, and power purchased from other markets.

Sargent & Lundy will handle the RFP on IPL’s behalf. Bids are due on Feb. 28, 2020.