Renewable Energy & Sustainability Flashcards

AEP's wind generation capacity is largely concentrated in which U.S. region?

Answer: Upper Midwest and Southern Plains (Oklahoma, Texas, Kansas)

Oklahoma, Texas, and Kansas sit within the Great Plains wind corridor, offering some of the highest wind capacity factors in the continental US, making them ideal for AEP's wind portfolio.

What does 'capacity factor' measure for a wind or solar installation?

Answer: The percentage of nameplate capacity actually delivered over a period versus theoretical maximum

Capacity factor is actual energy output divided by what the plant would produce if it ran at full nameplate capacity continuously, reflecting real-world intermittency.

AEP's sustainability reports disclose water withdrawal data. Why is water management particularly important for AEP's generation fleet?

Answer: Thermal generation (coal, gas, nuclear) requires large volumes of water for cooling

Thermal power plants use water to cool steam in the generation cycle, making water availability and withdrawal a material operational and environmental concern.

When AEP retires a coal plant and replaces it with a renewable resource, what financial risk is primarily reduced for ratepayers?

Answer: Fuel price volatility risk

Wind and solar have zero fuel cost, eliminating exposure to coal price swings and hedging costs that can significantly affect customer bills.

Which organization certifies and tracks Renewable Energy Certificates (RECs) in AEP's operating region of the Midwest?

Answer: M-RETS (Midwest Renewable Energy Tracking System)

M-RETS is the tracking system used in Midwest states to issue, track, and retire RECs, providing transparency and preventing double-counting of renewable attributes.

AEP's 'clean energy transition' plan phases out coal while adding renewables. What grid reliability concern must be managed during this transition?

Answer: Maintaining sufficient dispatchable capacity to serve load when wind and solar are unavailable

As intermittent renewables replace dispatchable coal, utilities must ensure enough firm capacity — gas, storage, or demand response — is available to meet peak load when renewable output is low.

What is the purpose of a Power Purchase Agreement (PPA) in AEP's renewable energy procurement strategy?

Answer: It establishes a long-term contract to purchase renewable energy at a fixed price from an independent developer

A PPA is a long-term electricity supply contract between AEP and a renewable energy developer, providing price certainty for AEP and financing security for the developer.