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AEP to upgrade and retire coal plant to meet EPA regulations
- 12 years ago (2011-06-10)
- Junior Isles
American Electric Power (AEP) has said it plans to retire nearly 6000 MW of coal-fired power generation as part of its efforts to meet new regulations proposed by the US Environmental Protection Agency.
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AEP also plans to upgrade or install new advanced emissions reduction equipment on another 10 100 MW, convert 1070 MW of coal generation into 932 MW of natural gas capacity and build 1220 MW of natural gas-fired generation.
The company expects its upgrade plan to require capital investments of $6-8 billion through to the end of the decade.
"High demand for labour and materials due to a constrained compliance time frame could drive actual costs higher than these estimates," AEP said in a statement.
The plan, including proposed retirements, could change significantly as it depends on the final draft of EPA regulations and regulatory approvals from state commissions, it added.
About 65 per cent of AEP’s total generating capacity is currently made up of nearly 25 000 MW of coal-fired generation. Coal’s proportion is expected to fall, fuelling only 57 per cent of AEP's total generating capacity by the end of the decade.