• Energy News Network
  • Energy News Network
  • Midwest
  • Southeast
  • Northeast
  • West
  • Opinion
  • Newsletters
    • Daily email digests
    • Centered.tech
  • Books
  • About
    • Code of Ethics
    • Staff
  • Donate
clean energy

Commentary: Ohio utilities and businesses trending toward clean energy, and the state should follow

Written By Dan BakalNovember 15, 2018
Photo By
tlarrow / Creative Commons

tlarrow / Creative Commons

The Ohio statehouse.

As AEP takes much-needed steps toward decarbonization, pressure increases on state lawmakers to embrace, not hinder, growth. 

Dan Bakal is director of electric power at Ceres, a sustainability nonprofit organization.

Electric utility companies in states across the country are undergoing a transformation, decarbonizing their operations and embracing cleaner energy resources — and Ohio is no exception.

American Electric Power (AEP) — one of the largest greenhouse gas emitters in the U.S. electric power sector — recently made two major announcements that highlight progress in their transition to a low-carbon future, including plans to fully retire the Conesville, Ohio, coal plant in 2020. This news follows their newly-filed long-term forecast report, which calls for at least 900 megawatts of new renewable energy projects in Ohio. These steps would more than double the renewable energy capacity in a state that is dominated by coal and natural gas electricity production — a major step in the right direction toward a low-carbon future.

AEP is making these investments because they make business sense and will help the utility be more prepared for the future — including meeting the utility’s recent commitment to reduce greenhouse gas emissions company-wide 80 percent below 2000 levels by 2050. These announcements also reflect a growing national trend among utilities toward cost-effective, low-carbon energy resources —a trend that is driven in part by demand from their investors.

Investors are calling on utilities to disclose the risks and opportunities related to clean energy transition. Ceres has provided guidance for utilities to reduce their greenhouse gas emissions and increase renewable energy in order to align their business plans with the goals of the Paris Climate Agreement, which commits countries to keeping global temperature rise well below 2-degrees Celsius in relation to pre-industrial levels and, aspirationally, no more than 1.5 degrees. As such, AEP is part of a wave of electric power companies making significant commitments, including several in the Midwest, such as DTE Energy and CMS Energy in Michigan.

‘Investors are calling on utilities to disclose the risks and opportunities related to clean energy transition.’

AEP’s renewable energy expansion will include at least 500 MW of wind and 400 MW of solar energy projects. If approved, the proposal will significantly expand Ohio’s clean energy economy and bring $173 million in net benefits to the state’s electricity customers. AEP’s commitment, combined with consistent and strong clean energy policies, will ensure Ohio gets the full value of potential benefits, from a stronger economy to new jobs in counties throughout the state.

It is not just investors that utilities are responding to when it comes to clean energy. Major corporate customers are making their own clean energy commitments, and small businesses and residential customers are also demanding clean energy. These changes are shown in a recent survey that found the majority of AEP Ohio’s residential and small commercial customers believe it is important for AEP Ohio to make greater use of renewable energy and would even support paying more for renewables. AEP’s announcement, as well as strong investor, business, and customer support for clean energy investments, stands in stark contrast to Ohio’s legislative politics and highlights the importance of Ohio’s renewable portfolio and energy efficiency resource standards in driving investment in clean energy.

In recent years, Ohio’s renewable portfolio and energy efficiency standards have been key to attracting investments and bringing jobs to the state. Unfortunately, despite broad business support, Ohio lawmakers have wavered in their support for the renewable portfolio and energy efficiency standards that helped create the state’s growing clean energy economy. Lawmakers have introduced numerous bills aimed at weakening or dismantling the standards, along with a burdensome wind turbine setback rule that has practically halted the development of cost-effective wind energy. This back and forth throughout the past four years has created significant uncertainty and undermined the state’s ability to capture the economic development and environmental benefits of these investments.

This fall, in a lame duck session, Ohio lawmakers are expected to once again revisit the state’s clean energy standards. Following AEP’s announcement and the consistent, growing investor, business, and customer support for strong clean energy standards in Ohio, lawmakers should look to encourage — not obstruct — increased investment in this growing sector of the economy.

Dan Bakal is director of electric power at Ceres, a sustainability nonprofit organization working with the most influential investors and companies to build leadership and drive solutions throughout the economy.

Related News

  • person typing on computer keyboard

    Minnesota co-op websites get failing grade on disclosing power sources

    A rural environmental group takes electric cooperatives to task for not providing better online information.

  • Iowa town split on municipal utility vote; too close to call late Tuesday

    Opponents of a municipal utility campaign in Decorah, Iowa, held a four-vote lead late Tuesday with at least 15 ballots uncounted. Official results were not expected until Monday.

  • In Ohio town, energy ‘locavores’ drive demand for community solar

    Athens, Ohio, residents will vote in May on whether to place a “carbon fee” on local utility bills to support community solar projects.

Comments are closed.

Subscribe to our newsletter

You can change which regions you're subscribed to by clicking the link in the footer of our emails.

Latest News

  • Senate confirms Granholm to lead Energy Department
  • Illinois Capitol
    Illinois energy bill proposes ‘green bank’ as national movement builds
  • Looking up from underneath a transmission tower.
    Critics fear investors’ push for profits could thwart other FirstEnergy priorities
  • A swing set stands alone in the Salton Sea.
    Will California’s desert be transformed into Lithium Valley?
  • Power plant smokestacks in the background; power lines in the foreground.
    As coal plants close, advocates want relief for Wisconsin ratepayers
  • Closeup of the HourCar logo on the back of a blue car.
    Minnesota car-share program seeks to boost EV access in diverse neighborhoods
  • Inside the Ohio Senate chamber from above.
    Ohio Republicans’ bill would force state agencies to reduce their rule books
  • An aerial view of downtown Lima, Ohio.
    Ohio refinery city joins coalition to support local clean energy transitions

More from the Energy News Network

  • Energy News Network
  • Midwest
  • Southeast
  • Northeast
  • West
  • About
  • Support

The Energy News Network is an editorially independent project of  
© Copyright 2021

  • Terms of Service
  • Privacy Policy

Built with the Largo WordPress Theme from the Institute for Nonprofit News.

Back to top ↑