Indiana Public Service Company and the Clean Energy Infrastructure (CEI)
business of Capital Dynamics have signed a long-term power purchase
agreement (PPA), NIPSCO announced this morning.
Under the PPA’s
terms, NIPSCO will purchase 280MW of the power generated by a CEI-owned
greenfield solar project called Gipson Solar, one of the projects being
developed by CEI in Gibson County, Ind. Arevon Energy Management and Tenaska
are co-developing this project and were instrumental in the signing of the
“We are proud to
partner with Capital Dynamics on the Gibson purchase power agreement,”
NIPSCO President Mike Hooper said. “The addition of this homegrown Indiana
solar energy project is the next step in our innovative and gradual
transition to lower-cost, cleaner energy for our customers.”
Capital Dynamics is
an independent global private asset management firm.
previously announced eight other renewable energy projects, which include a
combination of similar purchase power agreements and joint ventures, as part
of its “customer-centric ‘Your Energy, Your Future’ generation transition
“The company plans
to be coal-free by 2028, adding a combination of cleaner energy resources to
its existing portfolio of natural gas and hydroelectric generation,” the
company said. “NIPSCO’s industry-leading generation transition will deliver
a more affordable, reliable, and sustainable energy mix for NIPSCO customers
for years to come--saving customers $4 billion over the long term.”
NIPSCO will request
the addition of these new projects to its supply portfolio in filings with
the Indiana Utility Regulatory Commission.
The Gibson Solar
project is one of 19 projects which Capital Dynamics acquired from Tenaska
in November 2018 and April 2019, and is located on approximately 2,400 acres
in southern Indiana. The project is currently in the development stage with
construction to begin in 2022 and commercial operation expected in 2023.
“This is one of the
largest solar projects located east of the Mississippi, and the Gibson
project will be an important contributor to the ongoing energy transition in
Indiana,” said Benoit Allehuat, managing direction of Capital Dynamics’
Clean Energy Infrastructure.