American Electric Power Inc. (AEP – Free Report) is busy increasing its wind power deliveries in Ind., Michi. and Okla. regions to meet the surging demand for renewable energy.
Recently, Indiana Michigan Power Company (I&M), a fully owned subsidiary of American Electric Power, signed a 20-year power purchase agreement (PPA) with EDP Renewables North America LLC to buy renewable energy from the 200 MW Headwaters wind farm.
Located in Ind., the Headwaters wind farm project is scheduled to be installed by the end of 2014. The project will be connected to the AEP transmission system to deliver power to both Mich. and Ind. customers. I&M will have a total power generation capacity of 450 megawatt (MW).
The Production Tax Credits (:PTC) extension in Jan 2013 ensures significant wind capacity additions over the next three years, thereby leading to higher generation from wind. This favorable environment facilitates long-term PPAs in the U.S., thereby creating growth opportunities for companies like EDP Renewables.
Again, American Electric Power’s Okla. unit – Public Service Company of Oklahoma – recently issued a request for proposals for up to 200 MW of long-term purchase deals for wind energy.
The proposals call for wind projects that are in advanced stages of development and capable of qualifying for the federal government’s PTC. Power delivery under the deals should start by Jan 1, 2016, subject to approvals by Oklahoma Corporation Commission. Any purchase made herein will replace a PPA that is expiring at the end of 2015.