Solar + Storage Project Comes Online in Shadow of Indiana Coal-Fired Plant

Why It Matters

The shift accelerates Indiana’s transition from coal to cleaner energy, enhancing grid reliability and delivering economic incentives for the local community. It signals broader utility‑scale renewable adoption in the Midwest’s traditionally coal‑heavy markets.

Key Takeaways

• 250 MW solar, 180 MWh storage now operational
• Replaces two 1960s coal units at 2‑GW plant
• Gas will take over remaining coal units
• AES commits $1.1 billion to Pike County investments
• Energy‑community status raises tax credit to 40 %

Pulse Analysis

The Petersburg Energy Center marks a pivotal step in the Midwest’s energy transformation, as AES Indiana replaces aging coal capacity with a sizable solar‑plus‑storage complex. By installing 250 MW of photovoltaic generation alongside a 180 MWh battery, AES not only curtails emissions but also provides fast‑response power that can smooth intermittent output. This configuration supports the plant’s reliability mandate while the adjacent coal units transition to natural gas, creating a hybrid system that balances baseload stability with renewable flexibility.

Beyond the technical merits, the project carries substantial economic weight for Pike County. AES’s $1.1 billion investment plan, spanning 2024‑2025, underscores a commitment to job creation and local infrastructure. The designation as an Energy Community elevates the state tax credit to 40 %, a financial lever that encourages further private capital in the region. Coupled with the earlier 800 MWh battery installation, the new assets enhance grid resilience, reduce peak‑load costs, and position the county as a model for clean‑energy‑driven economic development.

Nationally, utilities are increasingly pairing solar farms with storage to meet both regulatory decarbonization targets and market demand for dispatchable renewables. AES’s approach reflects a broader industry trend of retrofitting legacy fossil‑fuel sites with low‑carbon technologies, leveraging existing transmission corridors and land assets. As more coal plants in the United States face retirement or conversion, projects like Petersburg illustrate a pragmatic pathway to maintain reliability, capture tax incentives, and accelerate the renewable transition in traditionally coal‑dependent regions.

Solar + storage project comes online in shadow of Indiana coal-fired plant

By Kelly Pickerel

AES Indiana has installed a solar and storage system outside the Petersburg Generating Station, a 2‑GW coal‑fired plant that is transitioning to natural gas.

The solar/storage Petersburg Energy Center outside the coal‑powered Petersburg Generating Station in Indiana.

The 250‑MW solar and 180‑MWh storage Petersburg Energy Center is now online in the utility territory. The solar and storage system is replacing two of the coal‑powered units that began operation in the 1960s. Natural gas will replace the remaining two units at the coal plant.

“This project helps AES Indiana maintain its commitment of reliability today and tomorrow for our customers in Central Indiana and our commitment to be a driving economic force in Pike County,” said Brandi Davis‑Handy, President of AES Indiana. “Both AES Indiana and leaders in Pike County have a shared vision of accelerating the future of energy for Indiana which is why we’ve committed $1.1 billion in investments in this community from 2024 through this year.”

Additionally, AES Indiana brought online last year the 800‑MWh Pike County Battery Energy Storage System (BESS).

The Petersburg Energy Center features 250 MW of solar.

“Pike County is an energy community, and we are open for business,” said Ashley Willis, Executive Director of the Pike County Economic Development Corporation. “AES Indiana is our largest employer and we are happy to see their continued investment and partnership in our community.”

The Petersburg Energy Center qualifies as an Energy Community, increasing the tax credit from 26 % to 40 %, which encourages continued investments in Pike County.

---

Kelly Pickerel has more than 15 years of experience reporting on the U.S. solar industry and is currently editor in chief of Solar Power World.

Email Kelly.