Sustainability at Advanced Power
The Challenge
The accelerating digital economy is reshaping the U.S. energy landscape faster than most expected. In 2025, updated electricity forecasts point to a dramatic surge in demand driven by the rapid expansion of AI infrastructure and data centers, continuing electrification of the economy, and steady growth in U.S.-based manufacturing. For utilities, hyperscalers, and those racing to secure reliable, sustainable power, the stakes have never been higher.
Just a short decade ago, national electric load growth was essentially flat, averaging about 0.5% per year. Power project developers focused on replacing retiring coal plants with cleaner technologies within standard grid interconnection processes.
In 2024, data centers accounted for roughly 4% of U.S. electricity consumption. Meanwhile, a comprehensive analysis by McKinsey & Company suggests that electricity demand may rise by “more than 3% per year through 2040,” driven by the convergence of AI, electrification, data centers, and industrial growth.
For Advanced Power, this represents a multi-challenge: 1) delivering speed to power, 2) securing state-of-the-art equipment that is efficient and flexible to ensure grid reliability, and 3) maintaining our ongoing commitment to a sustainable, reliable energy future. We understand that success in the emerging digital economy is not a “nice to have,” it is vital to the future of healthy communities.
Sustainability in a Digital World
Sustainability and ESG today go well beyond philanthropy or community service. In a digital economy, reliable electricity is a social necessity. When power supplies are constrained or unavailable, economic development opportunities are limited, cloud and AI deployment is slowed, and innovation is restricted – all to the detriment of local communities. The construction of new power supplies and digital infrastructure such as data centers creates thousands of high-quality construction jobs and fosters a long-term ecosystem of direct and indirect well-paying careers in technology, maintenance, and local services—helping communities thrive for decades to come. As a company committed to advancing a sustainable, reliable energy future, we know ensuring adequate, responsibly developed energy supply is one of the most meaningful ESG contributions we can make.
Our Commitment to Sustainable Energy Solutions
Advanced Power’s development strategy reflects our belief that until new dispatchable, zero-carbon generating technologies become available around the clock and at scale, the most reliable and environmentally responsible path forward is an all-of-the-above energy mix strategy.
Those seeking quickly available, dependable, and sustainable power solutions can find them reflected in our approach to sustainability, including:
- High-efficiency, low-emission baseload generation through modern CCGT facilities fueled by clean, domestic natural gas.
- Behind-the-meter energy solutions for those needing flexible, reliable power more quickly than standard interconnection processes allow.
- Energy storage and advanced peaking resources that support intermittency and maintain grid stability during periods of rapidly increasing and decreasing demand.
- Continuing growth in renewable energy development, including utility-scale solar and emerging clean generation technologies.
This diversified approach supports reliability, sustainability, and speed to market—three essentials to low-carbon capacity growth in a world where digital services, AI workloads, and cloud platforms are growing exponentially.
Throughout our sustainability, project development, and investment strategies, Advanced Power remains committed to delivering balanced, dependable, low-carbon energy solutions. This urgent new phase of power generation development supports the broader digital economy and the thriving communities that depend on it.
Thomas Spang
Chief Executive Officer
This ESG section offers a comprehensive overview of Advanced Power’s environmental, social, and governance (ESG) initiatives. We ensure accuracy through ongoing reviews by members of our ESG committee and internal subject matter experts. If you have feedback or suggestions about this section, please contact us.
Developing Cleaner, Reliable Power in a Sustainable Way
Meeting the demand for more efficient and flexible generating resources in the cleanest way possible is central to Advanced Power’s sustainability strategy. As electricity demand grows, our project portfolio combines modern, high-efficiency technologies with a resource mix of lower-carbon natural gas, zero-emitting battery energy storage, and clean renewables to deliver reliable, efficient power. We’re reducing emissions and improving grid reliability, both of which are essential for a healthy environment.
Advanced Power’s strategic pipeline of projects includes a mix of renewable, no-carbon, and low-carbon power sources to meet forecast dramatic growth in energy demand dependably, safely, and efficiently. While renewables are the fastest-growing power source in the U.S., the technology to address their intermittency is still evolving. Until innovators deliver an “always on” technology with fewer environmental impacts, we believe renewables, supported by cleaner-burning and domestically available natural gas, will best keep U.S. electricity supplies stable and reliable.
Minimizing environmental impacts while quickly bringing new generating assets to fruition is central to Advanced Power’s development strategy.
We develop projects in regions with the greatest gap between electricity demand and supply. Our strategic pipeline of projects includes critical locations where population shifts, electrification, generator retirements, and the development of digital infrastructure have created urgent capacity challenges.
We also believe that integrating on-site natural gas-based power generation will play a vital role in delivering speed-to-power and in managing regional energy capacity needs. For a list of current projects in active development, visit our Projects Page
Feasibility Planning and Site Evaluation
Advanced Power's feasibility and site evaluation process involves selecting sites based on their accessibility to interconnection infrastructure as well as alignment with our company’s Core Values.
Our process for evaluating and selecting energy project sites, including Solar, CCGT, Simple Cycle Peaker, or BESS facilities, includes several considerations: energy demand, distance from transmission infrastructure, existing land use, wetlands, and floodplains.
Each state and energy region also has its own goals and priorities, as do the various load-serving entities within their footprint, and we engage early and throughout the feasibility process to ensure mutual alignment.
Regulatory Compliance and Environmental Stewardship
We frequently collaborate with landowners and various state and federal agencies during the feasibility process to conduct additional studies, secure all essential permits, and strategically design and refine the project for successful completion.
The study, design, and permitting processes can take several years. They focus on environmental health and the compatibility of projects with existing land use and infrastructure, including stormwater management, native vegetation management, assessments of vulnerable species, viewshed impact studies, and cultural and historical reconnaissance.
These measures protect vulnerable species and their habitats, contributing to the long-term health of our ecosystems.
Strong, Local Relationships
Advanced Power is a company founded on strong relationships. We take pride in our honest, thorough, and community-focused development processes, striving to ensure that our projects provide value to communities and to those who become our partners and investors. We adopt a “community knows best” approach to engaging with local residents during site identification and development activities, and this approach extends through construction and operations.
We value the insights of economic development organizations, environmental advocates, chambers of commerce, local government, and other state agencies. We recognize that these entities best understand a community's uniqueness. We establish positive relationships with local stakeholders to ensure that each project reflects the character of its host community.
Addressing Peak Demand
A challenge for today’s power system managers is maintaining reliability during periods of peak demand. Grid reliability depends on the consistent alignment between power generated and the power used by customers. Solar generation plays an important role in supplying low-carbon electricity, particularly during daylight hours, but peak demand does not always coincide with peak solar output. Advanced Power’s project pipeline includes BESS and modern natural gas peaking facilities to enhance grid reliability during times of high energy demand or when renewable electricity supplies may fluctuate.
In Advanced Power’s active development portfolio are combined Cycle Natural Gas Turbine (CCGT) facilities and Simple Cycle Peakers. Our peakers are highly flexible and operate more efficiently than older Peaker facilities that run on fuel sources like diesel or jet fuel. Additionally, our modern CCGT facilities are efficient and have lower emissions than traditional natural gas facilities. Advanced Power is currently developing CCGT and Simple Cycle Peaker projects in Indiana, Ohio, and Texas, totaling roughly 2.8 GWac in development.
Advanced Power’s Peaker facilities are proposed in areas with growing amounts of renewable energy, increasing demand, and convenient interconnection to natural gas infrastructure. The average age of existing U.S. peakers is 22 years old, while our proposed gas peakers are designed with more stringent emissions standards and typically feature Nitrous Oxide (NOx) and Carbon Monoxide (CO) emissions control equipment. They come “out-of-the-box” ready to comply with reduced carbon emissions standards.
BESS projects are at the top of the U.S. energy project development queue. Advanced Power is currently developing standalone and co-located lithium-ion BESS projects, totaling roughly 9+ GWh in development.
BESS aids in smoothing electric demand fluctuations, reducing the need for additional coal-based power, enhancing grid stability, and, in turn, supporting the integration of renewable energy sources. Advanced Power’s standalone BESS and co-located BESS facilities are designed to provide arbitrage services, meaning batteries are charged when demand is low and then dispatched by grid operators when needed.
Advanced Power aims to reduce carbon emissions and promote a healthier environment through sustainable energy practices. We have 3 GWac of solar energy projects in development, enough to power over 200,000 homes. Our solar projects often include battery energy storage systems (BESS) to optimize the use of project sites and interconnection points. Through these initiatives, Advanced Power solar projects contribute to a cleaner, more sustainable energy future.
Reliable power is critical to the health, safety, and economic viability of people and communities. Our commitment to social responsibility focuses on supporting our communities while maintaining a workforce that supports that mission and our other core values.
Community involvement is a core value at Advanced Power. Beyond generating clean, reliable power, we aim to provide other community benefits. We contribute tax revenue and charitable donations, including $7.2 million in 2025 through PILOT Agreements, which support local schools, towns, counties, and states. Our site managers and employees actively seek ways to help the community. We strive to ensure our projects positively impact local communities by sourcing materials locally, creating jobs, and generating tax revenue.
Our success at Advanced Power stems from our team of over 70 skilled and passionate individuals. Company leadership prioritizes employee engagement and motivation, all driven by a shared vision for a sustainable energy future.
In 2025, a positive workplace culture was enhanced through a flexible work environment, professional development, and value creation. We encouraged participation in both internal and external development opportunities.
Advanced Power monitors industry compensation standards to keep pay, benefits, and incentives competitive. Employees can work remotely when needed, enabling a positive work-life balance. This flexibility resulted in an 89% staff retention rate this year.
Cultivating a talent pool is important for creating a sustainable and reliable energy future. Several key strategies are focused on:
- Attracting emerging talent through educational outreach and internship programs that connect with local schools and universities.
- Prioritizing ongoing professional development by enhancing workforce training.
- Seeking employee feedback and using workforce insights to implement changes within the organization.
Safety is a core value at Advanced Power, and annual safety training is mandatory for all employees. In 2025, a third-party safety firm conducted first-aid CPR and AED training. Additionally, all employees attended mandatory crash prevention training provided by a state-certified, third-party organization. Safety inside and outside the office remains a top priority at Advanced Power.
While ESG involves actions related to environmental and social responsibility, achieving sustainability goals requires strong leadership focus, organizational structure, and clear accountabilities. Governance plays a key role in ensuring progress towards these goals.
The governance structure at Advanced Power includes a Board of Directors, a Senior Management Committee, and a team of employees with extensive experience in aligning ethical results with strategic objectives aimed at achieving a sustainable and reliable energy future.
The Advanced Power Board of Directors oversees company governance. Comprised of six experienced energy professionals, the Board oversees operations, finances, corporate strategy, resource allocation, and legal compliance to protect shareholders' interests. The Board members also participate in subcommittees for Audit, Risk Management, and Environmental Health and Safety, attend quarterly meetings, and hold sessions with the CEO and Senior Management Committee. They set company goals, plan long-term objectives, including ESG, and oversee high-level decisions by the SMC, who handle daily operations.
The Senior Management Committee
Each Board member at Advanced Power possesses decades of expertise in various fields such as energy, development, finance, or law. Complementing this, the Senior Management Committee (SMC) brings together leaders from key functions within the company: Development, Asset Management, Engineering and Construction, Administration, Capital Markets and Investments, and Legal. The SMC collaborates closely with the Board to realize both long-term and short-term strategic objectives through their respective teams.
Employees across all departments engage in cross-functional efforts to achieve the company's goals in development, asset management, finance, and ESG. This necessitates the establishment of clearly defined, measured, and monitored strategic goals, which are formulated and sanctioned by the SMC and ultimately approved by the Board of Directors.
The intricate interdependencies among work functions demand close and frequent collaboration within the SMC and among their respective teams. SMC members regularly review progress and assess potential risks to achieving both short-term and long-term goals and objectives, based on ongoing meetings with team members at different levels within the organization.
Achieving Advanced Power's strategic goals requires collaboration across all company levels and functions. For instance, expanding the renewable energy portfolio involves Development, Asset Management, Engineering and Construction, Administration, Capital Investments, and Legal.
Success hinges on teamwork and accountability among peers, leaders, and experts. Each year, company goals are shared during a cross-functional meeting with all employees, from which department, team, and individual goals are derived.
Accountability is tracked and measured through performance reviews held twice a year to ensure organizational, departmental, and personal objectives are met.
To incorporate ESG principles into our organizational culture, an ESG Committee was established in 2022. The ESG Committee includes representatives from each functional area within the company and meets quarterly to monitor, recommend, and guide the implementation of approved ESG initiatives that align with Advanced Power’s strategic goals. Communication between members of the ESG Committee and the SMC ensures that Advanced Power's aim of supporting a sustainable and reliable energy future remains a priority.
Contracts need varying levels of review and approval based on their significance and cost. New obligations, whether contractual or governmental, are managed by relevant functional leads. Any expenditure requires additional approvals from accounting and experts for thorough oversight.
While often seen as a technology issue, Advanced Power also views cybersecurity as a safety concern essential for protecting systems, networks, and programs. We strengthen our defenses to safeguard partners' and customers' data.
The Center for Internet Security framework with 18 controls enhances our cybersecurity readiness.
Recognizing employees as the front line against phishing and ransomware, we provide regular mandatory training.
Each asset managed by Advanced Power operates as a separate entity with its own project-level board, including representatives from each ownership group and Advanced Power. The Asset Management team oversees operational and commercial risks, such as energy and market risk activities involving power, natural gas, and Regional Greenhouse Gas Initiative (RGGI) credit price risk.
Project boards approve risk management policies, ensuring operations align with Advanced Power’s core values and ethical standards. Asset Management also supervises construction, commercial operations, risk management, and environmental compliance.
Effective communication and transparency build trust between Advanced Power and project partners. Asset Management staff coordinate daily with partner facilities, fuel suppliers, and 24-hour energy managers, maintaining positive regulatory relationships to address environmental issues promptly.
Health and Safety
Advanced Power always prioritizes safety, including at its managed assets. Regular reviews of key metrics enhance health and safety awareness. We conduct formal safety reviews annually, quarterly, and monthly at each asset. These reviews cover health, safety, and environmental performance, reviewing metrics, discussing incidents, and noting safety actions. At operating sites, we also perform and document quarterly compliance and risk reviews to assess past performance and set expectations for the next quarter.
Audits and Continuous Improvement
To comply with our governance and risk management processes, third-party annual audits are conducted on all managed assets to verify proper adherence to accounting and business controls.
Portfolio Metrics to Date
In addition to our current development activities, the figures below highlight Advanced Power’s cumulative generation and storage capacity across managed, divested, and late-stage projects.
2025 Year-End Performance
The metrics below represent our social and environmental performance for calendar year 2025. These figures will be updated annually