AEP releases Climate Scenario Analysis report
American Electric Power (AEP) has released a report that looks at the impacts of climate change on its operations.
AEP’s Climate Scenario Analysis report also looks at the potential implications of the transition to a clean energy economy. It includes three focus areas: transition risk, physical risks, and the socio-economic impact of coal plant retirements. It examined prospective technologies and resources needed to produce a clean energy future while assessing potential costs to customers and market response. The analysis is aligned with the Task Force for the Climate-related Financial Disclosure framework.
“At AEP, we’re committed to making the energy we provide as clean as possible, as fast as we can, all without compromising reliability, affordability, or the security of the electric power system,” Nicholas Akins, AEP chairman, president and CEO, wrote in the report’s introduction. “Our most recent analysis of climate-related risks and opportunities created new awareness and will inform our strategic planning and decision-making as we go forward.”
The company announced in February that it intends to achieve net zero carbon emissions by 2050. The interim target is to cut emissions 80 percent from 2000 levels by 2030. To meet these goals, AEP plans to add more than 10,000 megawatts (MW) of new renewable resources to its generation portfolio by 2030. It is also investing in new technologies to modernize its power grid.
Further, AEP has retired or sold nearly 13,500 MW of coal-fueled generation in the past decade. It expects to reduce coal capacity by an additional 5,600 MW by 2030.
The analysis showed the company is ahead of projections as it is on a path to reduce carbon emissions by more than 90 percent by the mid-2030s. It outlined steps that will be necessary to achieve net-zero carbon emissions by 2050.
The report also analyzed the physical risks of climate change and the intensity of severe weather and other factors caused by climate change that could influence its operations and competitive standing. The review showed that the company’s ongoing efforts to invest in infrastructure and improve the reliability and resiliency of the energy grid are essential to overcome the challenges presented by climate change.
Additionally, AEP will provide advanced notice of plant retirements to help mitigate the impacts of coal plant closures. Further, the company is committed to helping employees find other employment within the company.
Based in Columbus, Ohio, American Electric Power delivers power to nearly 5.5 million customers in 11 states.
