AES Indiana announces plan to more than quadruple renewable energy capacity by 2042

In an op-ed published in the IndyStar on Dec. 2, 2022, the president and CEO of AES Indiana, Kristina Lund, laid out the company’s latest plans, which include an ambitious quadrupling of renewable energy capacity by 2042 and a major reduction of its carbon footprint.

“Our 2022 plan is our boldest move toward sustainability in the company’s history,” Lund said. “Under this plan, we will further reduce our carbon dioxide emissions per hour of electricity generated by two-thirds in this decade. By 2042, we expect to source more than 85 percent of our energy from wind, solar and other renewable technologies.”

AES Indiana releases a new integrated resource plan (IRP) every three years, following analyses and a public stakeholder process. This year, the plan included emissions reduction measures contingent on modifications of existing infrastructure at the Petersburg Generating Station and new investments in wind, solar, and battery energy storage. The former will see a restructuring of natural gas operations rather than its current coal reliance. The latter will take advantage of current government tax incentives for renewable projects.

According to this year’s report, AES Indiana currently generates, transmits, distributes, and sells electricity to approximately 517,000 retail customers in Indianapolis and surrounding areas, up to approximately 528 square miles of the total service area. Its whole system is managed by the Midcontinent Independent System Operating (MISO). Under its newest course, AES Indiana intends to add up to 1,300 MW of wind, solar, and battery energy storage over the next five years, with energy added from the construction of the Hardy Hills and Petersburg Energy Center Projects. This would grow its renewable and energy storage capacity from the current 400 MW to 2,200 MW by 2027.

By 2030, internal modeling estimated the company could achieve a 68 percent reduction in carbon intensity across this service area compared to 2018 by pursuing its current goals. By converting the remaining two coal units in Petersburg to natural gas, it will also be fully coal-free in terms of energy generation. This could also help insulate customers against cost rises, which have hit users of diesel, coal, and natural gas recently.

“Energy is foundational to our high quality of life, economic growth, and community development in Central Indiana,” Lund wrote in her op-ed. “We aspire to create the energy services of the future that will benefit all our customers and strengthen our communities. Our IRP, filed on Dec. 1, is a very important step on this journey.”