American Electric Power opens bids to build 3.5GW of wind, solar and storage in US southwest

American Electric Power’s (AEP) southwest US subsidiary has issued three requests for proposals (RFPs) to build renewable generating capacity, including as much as 3GW of wind, in six states.

The wind RFP, published by SWEPCO (Southwestern Electric Power Company), is among the industry’s largest historically, reflecting larger utilities ramping up integration of cheaper and cleaner energy sources under pressure from customers, investors, regulators, and the Biden administration's aim of a carbon-free electric grid by 2035.

Along with wind, SWEPCO, which serves Arkansas, Louisiana, and Texas, is also seeking up to 300MW of solar capacity and up to 250MW of battery or other storage capacity.

Wind resources must be a minimum 100MW, located in Arkansas, Louisiana, Texas, Oklahoma, Kansas, or Missouri, and must also interconnect with the Southwest Power Pool (SPP), which operates a grid serving all or parts of 13 central states.

Solar and energy storage sources must be for a minimum of 50MW within SPP. Proposals are due by 12 August.

AEP, among the nation’s largest utility holding companies, anticipates adding at least 10.7GW of wind and 5.9GW of solar this decade, as it raises renewables and pumped storage capacity to 51% of its generation fleet from 18% this year.

The company has identified 15GW of wind and solar investment opportunities over the next ten years in addition to $2bn for construction of three wind farms totalling almost 1.5GW in Oklahoma that will be online by April 2022.

AEP will retire 5.6GW of coal capacity this decade, reducing the fossil fuel’s share of generation from 43% this year to 18% in 2030.