AEP Renewable Energy & Sustainability 3 — Questions and Answers
Question 1: AEP has invested significantly in battery energy storage systems (BESS). What is the primary grid application for utility-scale BESS paired with solar?
- Baseload power generation
- Peak shaving and renewable energy time-shifting (Correct answer)
- Reactive power compensation only
- Black-start capability replacement
Correct answer: Peak shaving and renewable energy time-shifting
BESS paired with solar shifts energy from midday production peaks to evening demand peaks, maximizing the value of solar generation.
Question 2: Under AEP's Corporate Sustainability strategy, what does the term 'scope 2 emissions' refer to?
- Direct emissions from company-owned combustion sources
- Indirect emissions from purchased electricity, steam, heat, or cooling (Correct answer)
- All supply chain emissions upstream of AEP
- Methane leaks from transmission pipelines
Correct answer: Indirect emissions from purchased electricity, steam, heat, or cooling
Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling consumed by the reporting organization.
Question 3: AEP's transmission infrastructure plays a crucial role in renewable integration. Which grid challenge does expanded high-voltage DC (HVDC) transmission best address?
- Reducing customer billing errors
- Moving large amounts of renewable power over long distances with low losses (Correct answer)
- Eliminating the need for voltage regulators
- Increasing substation transformer efficiency
Correct answer: Moving large amounts of renewable power over long distances with low losses
HVDC lines efficiently transmit bulk power over hundreds of miles with significantly lower electrical losses than AC lines, connecting remote wind/solar resources to load centers.
Question 4: Which renewable energy certificate (REC) represents proof that 1 MWh of electricity was generated from a renewable source?
- Carbon Offset Credit
- Renewable Energy Certificate (REC) (Correct answer)
- Capacity Performance Credit
- Renewable Portfolio Standard compliance unit
Correct answer: Renewable Energy Certificate (REC)
One REC certifies that one megawatt-hour of electricity was generated and delivered to the grid from a qualified renewable energy source.
Question 5: AEP offers Green Tariff programs to large industrial customers. What do these programs allow customers to do?
- Bypass state utility regulation entirely
- Purchase a specified percentage of their electricity from renewable sources (Correct answer)
- Install their own nuclear micro-reactors
- Sell excess rooftop solar directly to neighbors
Correct answer: Purchase a specified percentage of their electricity from renewable sources
Green Tariff programs let large customers contract for a specified share of renewable energy, helping them meet corporate sustainability goals through the regulated utility.
Question 6: What environmental metric does AEP track to measure the carbon intensity of its generation fleet?
- Tons of SO2 per employee
- Pounds of CO2 per megawatt-hour (lbs CO2/MWh) (Correct answer)
- Gallons of water per kilowatt of installed capacity
- BTU per customer account
Correct answer: Pounds of CO2 per megawatt-hour (lbs CO2/MWh)
Lbs CO2/MWh (carbon intensity) measures how much carbon dioxide is emitted per unit of electricity generated, declining as the fleet shifts toward renewables.
Question 7: Which federal legislation passed in 2022 significantly expanded incentives that benefit AEP's renewable energy investments?
- Energy Policy Act of 2005
- American Recovery and Reinvestment Act
- Inflation Reduction Act (IRA) (Correct answer)
- Clean Air Act Amendments
Correct answer: Inflation Reduction Act (IRA)
The Inflation Reduction Act of 2022 extended and expanded renewable energy tax credits (ITC/PTC) and introduced new credits for storage and clean hydrogen, accelerating utility investment in clean energy.
AEP Renewable Energy & Sustainability 3
AEP has invested significantly in battery energy storage systems (BESS).
What is the primary grid application for utility-scale BESS paired with solar?