CenterPoint Energy said Indiana-based power and natural gas business CenterPoint Energy Indiana South is seeking approval from the Indiana Utility Regulatory Commission (IURC) to enter into an agreement to acquire a 300 MW solar array. The company is also applying for approval to conclude a Power Purchase Agreement (PPA) for an additional 100 MW of solar energy.
CenterPoint Energy is seeking an agreement with Capital Dynamics, the company that will build the project, owned by a utility in Posey County, Indiana. Arevon Energy Management and Tenaska are developing the project together. CenterPoint Energy is also proposing to purchase additional solar power under a 25-year contract from Clēnera, which is developing a solar project in southwest Indiana.
Together, the 400 MW represents the next component of the company's Smart Energy Future plan to meet its stakeholder sustainability goals and implement the most economical path forward as outlined in last summer's Integrated Resource Plan (IRP). The plan outlines a comprehensive approach that includes renewable energy, natural gas and coal to ensure regional reliability, and includes flexible generation to meet seasonal peaks.
"As one of the largest solar installations in the Midwest, these significant renewable resources would serve our local power customers and provide an affordable, stable energy option," said Steve Greenley, senior vice president of generation development for CenterPoint Energy. "We are confident that we have selected the right companies with the right experience for projects of this magnitude."
Following the completion of the final IRP in June 2020, which was heavily influenced by customer input and a call for proposals involving all generation sources, CenterPoint Energy worked with Capital Dynamics to explore opportunities for the future development of the Posey County property. After all the necessary permits, the solar system will be located on an area of approx. 2,500 acres and will consist of more than 730,000 solar modules. The facility is expected to be fully functional in 2023.
The construction of the solar project with Capital Dynamics begins with the receipt of the necessary permits and permits from the IURC. A decision on CenterPoint Energy's application is expected this year or early 2022. In the first construction phase, a substation must be set up for connection to the CenterPoint Energy power grid. During the proposed period of 14 to 18 months, the project will create approximately 250 full-time positions. In addition, $ 47.8 million will be donated to Posey County during construction and $ 1.2 million in property taxes annually while the solar array is operating.
Construction of the second solar system will begin after the necessary permits and permits have been received. A decision on CenterPoint Energy's application is also expected later this year or early 2022. CenterPoint Energy is expected to be in operation by 2023 and commission 100 MW of the total of 200 MW MW array.
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