Ameren accelerates toward ‘cleaner, sustainable’ energy
Ameren Corporation has announced a transformative plan that accelerates the transition toward a cleaner, sustainable energy future and targets net-zero carbon emissions by 2050 across all of Ameren. The plan, released September 28, includes the company's largest expansion of clean solar and wind generation in Ameren's history, while maintaining a relentless focus on safety, reliability and affordability.
Major elements of the plan are included in Ameren Missouri's 2020 Integrated Resource Plan (IRP) filing with the Missouri Public Service Commission. The IRP is a triennial filing that sets forth Ameren Missouri’s preferred plan to transform its electricity generation portfolio over the coming decades.
“This is a step change in renewable energy investments and carbon emission reductions from the plan we presented three years ago,” said Marty Lyons, chairman and president of Ameren Missouri. “Under our plan, customers will receive significant benefits from advances in technology and falling renewable energy costs, as well as from robust energy efficiency programs to help keep their energy costs affordable.”
Advances in technology and decreasing costs for renewable energy are driving significant investments in renewable energy generation. These investments, coupled with advancing the retirement of some of Ameren Missouri's coal-fired energy centers and seeking to extend the life of the Callaway Energy Center in the future, are making it possible to dramatically reduce carbon emissions, while keeping energy affordable and reliable. Further, the safe and effective operation of existing energy centers is foundational during this important transition period to meet customers' energy needs and exceed their expectations.
“We have developed a comprehensive plan that will significantly reduce carbon emissions in a responsible fashion and deliver strong customer benefits,” said Warner Baxter, chairman, president and chief executive officer of Ameren Corporation. “We have also established a bold goal to achieve net-zero carbon emissions by 2050. Achieving our goal will be driven by further advancements in innovative, carbon-free technologies and constructive federal and state energy and economic policies. Working together with key stakeholders, we believe we can achieve this important goal for our customers, our communities and our country.”
This new, more aggressive goal reflects the company’s leadership and continued commitment to clean energy and the environment. Milestones include reducing carbon emissions 50 percent by 2030 and 85 percent by 2040, based on 2005 levels.
Highlights of Ameren Missouri’s plan to achieve this goal include:
The company’s largest investments in renewable solar and wind energy in its history.
Investing billions of dollars, creating thousands of jobs.
Building on an already solid base of carbon-free generation.
Advancing retirements of coal-fired energy centers.
Offering customers even more clean energy choices.
Continuing focus on reliability and affordability.
Increasing renewable solar and wind energy investments
Ameren Missouri’s IRP includes investment of nearly $8 billion in renewable energy over the next two decades. By 2030, the company would add 3,100 megawatts (MW) of renewable generation reflecting a combined investment of approximately $4.5 billion. Renewable energy would increase to a total of 5,400 MW by 2040. Ameren Missouri projects the plan will create thousands of new construction jobs. The benefits of these investments extend through the local economy, leading to greater levels of opportunity for many, including diverse suppliers. Investments are already underway, with the planned acquisition of two Missouri-based wind energy facilities in the next few months for approximately $1.2 billion.
Building on a solid base of carbon-free generation
Ameren Missouri continues to invest in its existing carbon-free energy sources – including nuclear, hydro and solar – while also evaluating and pursuing additional clean energy innovations. Nearly 30% of Ameren Missouri’s current energy generation comes from these sources. In the future, Ameren Missouri expects to seek an extension of the operating license for the Callaway Energy Center beyond 2044.
Advancing the retirement of coal-fired energy centers
In recognition of changing market economics, as well as consideration for maintaining reliability through the transformation to renewable energy, the company's plan includes advancing the retirement of two of its coal-fired energy centers. The Sioux Energy Center is now planned to retire in 2028 and the Rush Island Energy Center’s retirement is planned for 2039. More than 75% of the company's current coal-fired energy generating capacity is expected to retire by 2040, and all coal-fired energy centers are scheduled to retire by 2042. Planned retirements begin in 2022 with the Meramec Energy Center.
Offering customers more clean energy choices
Ameren Missouri offers customers a range of options to increase their use of renewable energy. These include existing programs, such as Community Solar and Neighborhood Solar, as well as future customer renewable energy programs that will enable customers and communities to achieve their clean energy goals.
Support for the plan
An important aspect of the IRP process is ongoing dialogue and sharing of information with a wide variety of stakeholders, including consumer, environmental, conservation and community groups:
“If 2020 has shown us anything else, it’s that the most challenged communities need increased, long-term support. Ameren has stepped up during the pandemic, and they’re leading the way in the future with their net-zero carbon emissions goal. The Urban League is dedicated to serving the African American and other underserved members of our community. By Investing in clean energy, creating jobs, continuing to build and develop diverse business suppliers, Ameren is showing the leadership needed to bridge the inequalities that exist in our communities,” said Michael P. McMillan, Urban League of Metropolitan St. Louis, Inc.
“Our analysis shows that now is the time to capitalize on investment opportunities for the benefit of our customers, the communities where we raise our families, and the environment,” Lyons said.
“Our actions are consistent with our mission, ‘To Power the Quality of Life,’ for millions of people in Missouri and Illinois,” said Baxter.
The IRP is filed with and reviewed by the Missouri Public Service Commission (PSC) every three years. Major aspects of the plan, including construction of new renewable energy generation resources, customer energy efficiency programs, and renewable and demand response programs, will require separate PSC approval. Where necessary, Ameren Missouri will also need to obtain federal and local approvals and interconnection agreements so that it can use transmission services to connect renewable energy resources with Ameren Missouri customers.