American Electric Power’s AEP Renewables subsidiary has completed the purchase of 75 percent, or 227 megawatts, of the Santa Rita East Wind Project from Invenergy Renewables LLC. The transaction is part of the Columbus company’s long-term strategy to diversify its power plant portfolio.
Santa Rita East is located approximately 70 miles west of San Angelo, Texas, and the acquisition increases AEP’s contracted renewable generation portfolio to 1,302 megawatts. Invenergy will retain 25 percent ownership of the project.
“We’ve targeted approximately $2.2 billion in capital investment in our contracted renewables business by 2023, and combined with our purchase of wind, solar and battery assets in April, we have achieved nearly 70 percent of our contracted renewables investment goal,” AEP CEO Nicholas K. Akins said in a statement.
In addition to Santa Rita East, AEP added 724 MW of wind and battery generation to its contracted renewable generation portfolio in April.
Long-term virtual power purchase agreements are in place with Grupo Bimbo, Merck and Novartis for AEP Renewables’ share of the Santa Rita East generation.
AEP Renewables, a wholly owned subsidiary of AEP, develops, owns and operates large-scale wind and solar energy generation projects throughout the U.S. and sells that renewable energy through long-term contracts with utilities, electric cooperatives, municipalities and corporate customers.