Ameren Corp. recently established a net-zero carbon emissions goal by 2050 across all its operations in Missouri and Illinois. The company also announced its largest-ever expansion of clean solar and wind generation while maintaining reliability and affordability.
The clean energy expansion is included in the integrated resource plan (IRP) of Ameren Missouri. The IRP is a triennial filing that sets forth Ameren Missouri's preferred plan to transform its electricity generation portfolio over the coming decades. It takes advantage of the continued decline in the cost to build new clean energy resources.
"Our transformative plan accelerates Ameren's transition toward cleaner energy and targets net-zero carbon emissions by 2050, while meeting our customers' expectations for safe, reliable, and affordable energy," said Warner Baxter, chairman, president, and chief executive officer of Ameren Corp.
"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."
Central to Ameren's plan is the commitment to net-zero carbon emissions by 2050. Milestones include reducing carbon emissions 50% by 2030 and 85% by 2040, based on 2005 levels. The new goals accelerate and expand on the company's 2017 pledge and are consistent with the objectives of the Paris Agreement and limiting global temperature rise to 1.5°C.
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.
Advances in technology and decreasing costs for renewable energy and energy storage are making it possible to dramatically reduce carbon emissions, keeping energy affordable and reliable while strengthening environmental stewardship.
"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.
Increasing renewable solar and wind energy investments
Ameren Missouri's IRP includes investment of nearly US$8 billion in renewable energy over the next two decades. By 2030, the company would add 3100 MW of renewable generation, reflecting a combined investment of approximately US$4.5 billion. Renewable energy would increase to a total of 5400 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 US$1.2 billion.
"Communities in Missouri are already seeing the benefits of economic expansion driven by the availability, construction, and ongoing operation of renewable resources," Lyons said. "Renewable energy, constructed right here in Missouri, is good for the local economy."
Building on a 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, the company expects to seek an extension of the operating license for the Callaway Energy Center beyond 2044.
Ameren Missouri's planned transformative addition of renewable energy is the direct result of a robust, methodical process that balances reliability, affordability, and environmental stewardship. The IRP evaluates a range of customer energy needs and a variety of ways those needs can be met through building new, cleaner generation resources, as well as expanding customer renewable energy, energy efficiency, and demand response programs.
"We have developed a comprehensive plan that will significantly reduce carbon emissions in a responsible fashion and deliver strong customer benefits," Baxter said. "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."
"Climate change is one of the most important issues of our time. Our transformative plan to add large amounts of wind and solar energy generation will ensure all customers, regardless of where they happen to live or their household income, have access to clean, reliable, and affordable energy," said Gwen Mizell, vice president of sustainability and electrification at Ameren. "Our plan is a progressive move toward building a sustainable energy future."
Advancing retirement of coal-fired energy centers
The company's coal-fired energy centers provide reliable, affordable energy with emission rates well below environmental standards. The continued safe, reliable operation of these 24x7 energy centers, along with the carbon-free Callaway Energy Center, are the foundation that allows the company to maintain reliability while building a smarter energy grid and incorporating more renewable resources into the energy mix. They also provide the flexibility needed to take advantage of changes in technology, such as battery storage.
"We're very appreciative of our co-workers, especially those in the energy centers, who continue working around the clock to provide the dependable energy that millions of people and thousands of businesses count on each day," said Ajay Arora, vice president of power operations and energy management at Ameren Missouri.
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.
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. Climate, community, and energy leaders from across the country are supportive of Ameren's updated goals and renewable energy plans.
"Ameren's new net-zero carbon goal for 2050 and the advancement of 2040 and 2030 goals by 10 years is huge progress from where the company was just three years ago. It's a meaningful step in the Midwest in addressing climate change that builds on the company's success in achieving the 2025 Paris targets five years early," said Ashok Gupta, Natural Resources Defense Council. "Clean energy and energy efficiency investments of more than US$5 billion in the next 10 years will help our region's economic recovery, with energy efficiency and demand response programs saving the equivalent of two large power plants. With additional state and federal policy support, even greater emission reductions and economic benefits are possible."
"The Nature Conservancy of Missouri is encouraged to see Ameren's vision and carbon-free goal. Reducing carbon emissions is critical to addressing climate change that impacts us all. In order to avoid the worst effects of climate change and help society and nature adapt to the impacts we are already experiencing, we must reach net-zero emissions by 2050," said Adam McLane, The Nature Conservancy of Missouri. "The Nature Conservancy of Missouri stands ready to work with Ameren, state and local governments, and a wide cross-section of partners, to make this goal a reality by supporting the responsible deployment of renewable energy, retiring coal plants, and putting nature to work. Nature offers valuable climate solutions through conservation, restoration, and improved land management of our forests, grasslands, and wetlands. Ameren's carbon-free goal is pivotal for Missouri and provides opportunity for both people and nature to thrive."
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.
