Cinemark, AEP Sign 40MW Wind VPPA in Texas
- Oct 31, 2018
Cinemark USA, a wholly owned subsidiary of Cinemark Holdings, has entered into a nine-year virtual power purchase agreement (VPPA) with AEP Energy Partners, an energy subsidiary of American Electric Power. In addition to the agreement, Cinemark will continue to deploy energy efficiency projects including HVAC retrofits, rooftop solar panel installations, as well as interior and exterior LED retrofits.
Cinemark’s VPPA will support up to 40 megawatts of renewable energy from AEP’s Trent Mesa wind energy center in Nolan County, Texas. Once implementation is complete, the 40 megawatts of power will produce renewable energy equivalent to the approximate power consumption of 120 Cinemark theatres, or nearly 14,000 homes. Cinemark will receive renewable energy certificates (RECs) for the 40 megawatts of wind power capacity representing approximately 38 percent of Cinemark’s current total annual domestic energy consumption.
PPA vs. VPPA
Under physical PPAs, power is “physically” delivered to the buyer. In addition, both the renewable energy project and the buyer must be located in the same grid region. Furthermore, PPAs are limited to states that permit direct retail access.
Virtual PPAs are financially settled arrangements between renewable energy projects and buyers, with the buyer owning RECs. The renewable energy project and the buyer do not need to be in the same grid region. This type of agreement is appealing to organizations in states that do not permit direct retail access and to buyers that have multiple load centers.
“We remain committed to reducing our carbon footprint through both onsite and offsite renewable energy projects,” Mark Zoradi, Cinemark’s CEO, said in prepared remarks.
Image courtesy of Cinemark USA