Heavy Industry Goes Renewable

In August 2017, Cummins signed a 15-year virtual power purchase agreement (VPPA) with EDP Renewables (EDPR) North America for 75 megawatts (MW) of wind capacity to expand the Meadow Lake Wind Farm in Northwest Indiana. The deal is designed to avoid 165,000 tCO2e per year starting January 1, 2019, representing a significant scale-up from Cummins' existing 8 MW of solar capacity. To secure internal buy-in, Cummins utilized Monte Carlo simulations on historical price data to assess financial risk and validated the deal's value through the Business Renewables Center and Schneider Electric. The project emphasizes 'additionality' by adding new capacity to the grid and focuses on local community benefits in Benton and White Counties, Indiana.

• Cummins signed a 15-year virtual power purchase agreement (VPPA) in August 2017 for 75 MW of wind capacity, which is significantly more scalable than on-site options; the company calculated that achieving the same energy volume via on-site solar would require one square mile of panels costing approximately $380 million.
• The VPPA will expand an existing 600 MW wind farm in Northwest Indiana by 75 MW, producing electricity that covers about 50 percent of Cummins' US usage and 28 percent of its global usage, while avoiding 165,000 tCO2e annually starting around January 1, 2019.
• To overcome internal skepticism regarding energy price projections and financial risk, Cummins employed Monte Carlo simulations on historical price data and engaged external advisors, including Schneider Electric and the Business Renewables Center, to validate the investment's value.
• The project, located in Benton and White Counties, focuses on community benefit and environmental stewardship, with EDPR working with the US Fish and Wildlife Service on a habitat conservation plan.

APA

RMI (2018). Heavy Industry Goes Renewable. https://rmi.org/resources/heavy-industry-goes-renewable/

Chicago

RMI. Heavy Industry Goes Renewable. 2018. https://rmi.org/resources/heavy-industry-goes-renewable/.

Wikipedia

{{cite report |author=RMI |title=Heavy Industry Goes Renewable |date=3 October 2018 |url=https://rmi.org/resources/heavy-industry-goes-renewable/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2018heavy, author = {{RMI}}, title = {{Heavy Industry Goes Renewable}}, institution = {RMI}, year = {2018}, month = oct, url = {https://rmi.org/resources/heavy-industry-goes-renewable/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }