By Andi Anderson
AES Indiana, an investor-owned utility company, will become the first in Indiana to eliminate coal from its energy production by 2026. This shift hinges on approval from the Indiana Utility Regulatory Commission (IURC) to convert their Petersburg coal-fired Units 3 and 4 to run on natural gas.
The conversion project, if approved, is estimated to save customers $280 million over two decades and significantly reduce carbon emissions. AES Indiana projects a 70% decrease in carbon intensity by 2030 compared to 2018 levels.
"Evolving technologies, aging facilities, environmental regulations, and economic conditions" are driving this move towards natural gas, according to Brandi Davis-Handy, President of AES Indiana. She emphasizes that the conversion aligns with Indiana's energy policy while allowing AES to maintain its commitment to Pike County, where the Petersburg station is located.
AES has pledged to retain current Petersburg coal unit employees and anticipates the project will create 400 construction jobs and generate $125,000 annually in local economic benefits.
This conversion aligns with AES's 2022 Integrated Resource Plan, which prioritizes providing customers with the most reliable and affordable energy sources. The plan also includes significant investments in renewable energy, with the recent acquisition of a 106-megawatt wind farm and IURC approval for a 200-megawatt battery storage system. By embracing natural gas and renewables, AES Indiana is charting a course towards a cleaner and more sustainable energy future.
Photo Credit: pexels-sharath-g
Categories: Indiana, Energy