American Electric Power has made a turn away from renewables, selling a 1,365 megawatts renewable portfolio to IRG Acquisition Holdings at an enterprise value of ~$1.5 billion.
Instead, AEP plans to invest around $40 billion over the next five years in its regulated transmission and generation business that is focused on adding 17 gigawatts of new generation resources with more resilient, efficient transmission and distribution infrastructure. Julie Sloat, AEP’s president, and CEO, said, “We’re committed to de-risking the company and prioritizing investments in our core regulated businesses. The proceeds from the sale will be directed to the significant pipeline of opportunities we have to enhance service for customers across our footprint and advance our clean energy transition.”
This portfolio of 14 projects was already contracted under long-term agreements with other utilities, corporations, and municipalities, representing 1,200 MW of wind and 165 MW of solar, distributed across 11 states.