AES - AES Indiana says converting 1052 MW of coal to gas will save $381M

AES Corp. ( NYSE: AES ) plans to convert two coal-fired units totaling 1,052 MW at its Petersburg power plant in Indiana to natural gas in 2025, which it estimates will save $381M over 20 years compared with replacing the generating station with renewable energy and storage, UtilityDive.com reported Wednesday.

The AES Indiana ( AES ) subsidiary expects the power plant's use would fall sharply if it is converted from coal to gas, helping reduce its air emissions and water use.

The utility retired one unit at the four-unit Petersburg plant last year and is set to retire its 401 MW Unit 2 next year.

AES Indiana's ( AES ) integrated resource plan also calls for adding 240 MW of storage, up to 900 MW of wind, 90 MW of solar combined with storage and 75 MW of stand-alone solar by 2027, depending on the cost

At the end of the 20-year plan, AES Indiana ( AES ) would have a generating portfolio that is 87% solar, wind and storage, according to the IRP.

AES ( AES ) shares have been far more stable but also trade at a substantial discount compared to peers, Fund Letter Stock Ideas writes in an analysis posted recently on Seeking Alpha .

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