Northern Indiana Public Service Co. LLC (NIPSCO), a subsidiary of NiSource Inc., and the Clean Energy Infrastructure (CEI) business of Capital Dynamics, an independent global private asset management firm, have signed a long-term power purchase agreement (PPA).
Under the terms of the PPA, NIPSCO will purchase 280 MW of the power generated by a CEI-owned greenfield solar project, Gibson Solar, one of two projects being developed by CEI in Gibson County, Ind. Arevon Energy Management and Tenaska are co-developing the project and were instrumental in the signing of the PPA.
The Gibson Solar project is one of 19 projects that 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 expected to start in 2022, and commercial operation anticipated in 2023.
“We are proud to partner with Capital Dynamics on the Gibson purchase power agreement,” says Mike Hooper, president of NIPSCO. “The addition of this homegrown Indiana solar energy project is the next step in our gradual transition to lower-cost, cleaner energy for our customers.”
Eight renewable energy projects have previously been announced by NIPSCO, which include a combination of similar purchase power agreements and joint ventures, as part of its customer-centric “Your Energy, Your Future” generation transition plan. The company plans to be coal-free by 2028, adding a combination of cleaner energy sources to its existing portfolio of natural gas and hydroelectric generation. NIPSCO’s 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 company expects to announce additional renewable projects in the coming months.
To learn more about NIPSCO’s “Your Energy, Your Future” plan, click here.