1. AES Indiana plans to convert its remaining coal-fired power plant to burn natural gas by 2026.
2. The utility aims to triple its use of renewable energy by 2027 and reduce emissions of carbon dioxide by 70% by 2030 compared to 2018 levels.
3. The conversion aligns with the utility’s Integrated Resource Plan, which includes adding wind, solar, and battery energy storage projects while saving customers $280 million over 20 years.
AES Indiana, formerly known as Indianapolis Power & Light, is planning to convert its remaining coal-fired power plant in southwestern Indiana to burn natural gas by 2026. The utility filed a request with the Indiana Utility Regulatory Commission to make the switch and also aims to triple its use of renewable energy by 2027. This move is expected to lower costs for customers by $280 million over 20 years and reduce carbon dioxide emissions by 70% by 2030 compared to 2018 levels.
The conversion of Units 3 and 4 at the Petersburg Generating Station aligns with AES Indiana’s Integrated Resource Plan and includes adding wind, solar, and battery energy storage projects. The new gas-fired units are expected to come online in 2026, with the first unit starting commercial operation in June and the second in December. The utility has also acquired a wind farm and received approval for a standalone battery energy storage system.
Currently, AES Indiana generates 31% of its electricity from coal and 51% from natural gas, but expects natural gas generation to make up about 70% of its portfolio after the conversion. The coal-to-gas project will be led by Babcock & Wilcox Co. and supported by a natural gas lateral pipeline built by Midwestern Gas Transmission Co. This transition reflects the utility’s commitment to providing cleaner, more efficient, and cost-effective energy solutions to its customers.