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AES Indiana’s Petersburg Generating Station is planning to retire its last coal-burning unit in 2025 and switch to cleaner burning natural gas. The company is also building an 800 megawatt-hour battery storage array to store power when demand is low and discharge when demand increases. This transformation of old coal plant sites into new storage and renewable projects is becoming a trend across the country and is supported by state policies and financial incentives, including tax credits and grant programs.
Coal to Renewable Energy Transition at Indiana Power Plant
AES Indiana has taken strides towards cleaner energy by transitioning its coal-burning Petersburg Generating Station to natural gas, marking the end of coal in the state. Two of its four coal-burning units have been retired, with the last set to close down in 2025.
Despite this, energy generation will persist. Two coal units will be converted to cleaner-burning natural gas, and AES is constructing an 800 megawatt-hour battery storage facility at the Petersburg plant. The battery will store power when demand is low and release it when demand increases, making it a crucial component for the regional grid operator, the Midcontinent Independent System Operator (MISO).
This transition is part of an industry-wide trend spurred by increasing opposition to new wind, solar and storage developments and resistance to connect new power projects to the grid. Retired coal plant sites are now highly sought after for renewable energy developments in New Jersey, Nevada, Louisiana and elsewhere across the US.
The Role of States in Transitioning to Green Energy
States can expedite these transitions, according to Harry Godfrey, a managing director at Advanced Energy United. Renewable energy mandates, clean energy goals, and policies like ‘securitization’ can mitigate costs to consumers of retiring coal plants before the end of their use. Illinois, for example, has a grant program to incentivize retiring or closed coal plants to install energy storage.
The Inflation Reduction Act also aids efforts by offering a 10% credit for ‘energy communities’, including areas affected by the decline of coal.
Renewable Energy on Former Mining Sites
Companies like Sun Tribe Solar are considering ‘previously disturbed areas’ including former mine lands and brownfields for renewable energy projects. These sites can inject investment into communities affected by the decline of coal mining and are generally less controversial.
One example of this is Sun Tribe’s collaborative project with The Nature Conservancy and Sol Systems to build solar projects on former coal mine lands in Southwest Virginia, Eastern Tennessee, and Eastern Kentucky.
There are a potential 43 million acres of brownfields suitable for renewable power development, according to the U.S. Environmental Protection Agency. States can inventory these sites, consider nearby electric infrastructure and evaluate possibilities for renewable power.
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