Wisconsin utilities look to fill state's renewables gap while also expanding gas capacity

With an overall shortage of renewables, the state of Wisconsin is relying on its two main utilities to make good on their generation transition pledges to build out solar generation to reduce the state's dependence on coal while it also expands gas-fired generation.

According to Energy Information Administration data, in 2018 coal-fired generation was the leading fuel used for electricity generation in Wisconsin, representing 49% of the state's net generation.

One of the state's utility holding companies, the WEC Group based in Milwaukee, which has a total of 7,100 MW of capacity, has said that its subsidiaries, We Energies and Wisconsin Public Service, have retired since 2018 four coal-fired facilities with combined capacity of 1,800 MW.

Natural gas-fired power plants supplied 26% of Wisconsin's power in 2018, more than three times its share a decade earlier, the EIA noted.

Finally, in 2018, 9% of Wisconsin's "utility-scale net electricity generation came from renewable energy resources, including hydroelectric power, wind, biomass, and solar," according to the EIA.

By January 20, 2020, generation in the state had shifted somewhat. According to EIA data, natural gas-fired facilities generated 2.1 million MWh of Wisconsin's total of 5.55 million MWh generated in the month. Gas-fired generation represented 38.3% of the total.

Coal-fired generation slipped to 37% of total generation, thanks to retirements, while nuclear generation totaled 16.1%.

Hydro and non-hydroelectric renewables generated 470,000 MWh in January, representing 8.5% of the state's total, a slight decline from 2018.

WPL EXPANDS GAS GENERATION

The state's utilities now are saying they want to accelerate a generation transition to more renewables, mainly solar, as they also add more natural gas-fired capacity.

On May 15, Madison, Wisconsin-based Alliant Energy said it brought online its 730-MW West Riverside combined-cycle natural gas generating facility near Beloit, Wisconsin. Alliant began construction of the $660 million CCGT facility in spring 2017.

According to the company, its Wisconsin Power & Light, or WPL utility, now has 2,180 MW of gas-fired capacity out of a total generating capacity of 3,558 MW. Its coal capacity is 1,007 MW.

While neighboring states have been loading up on wind generation, Wisconsin has not.

Iowa, for example, has 10,664 MW of wind generation installed, according to the American Wind Energy Association, while Illinois has 5,659 MW, Minnesota 3,843 MW and Michigan 2,357 MW

According to AWEA, there is 746 MW of wind generation installed in Wisconsin. The WPL utility claims it has 328 MW of wind generation, while WEC's affiliates own five wind facilities that are all nine-years old or older.

ALLIANT, WEC LOOK TO SOLAR

According to the Solar Energy Industries Association, there is approximately 209 MW of solar generation in Wisconsin, the bulk of which is rooftop residential solar.

During a May 4 earnings call, Alliant Energy's CEO John Larsen said his company is "now entering the regulatory approval phase" of its proposed 1,000 MW solar build-out in in the state.

"We are in advanced discussions with developers and anticipate filing a certificate of authority for approximately two-thirds of the 1,000 MW by the end of this quarter," Larsen said.

During an April 2020 investor presentation, the WEC Group said its We Energies and Wisconsin Public Service affiliates are developing five solar projects with combined capacity of 485 MW.

WPS, which gets 40% of its generation from coal-fired facilities with 1,092 MW of capacity, has under construction the 100-MW Badger Hollow Solar farm in Iowa County, in southwestern Wisconsin, as well as the 100-MW Two Creeks Solar facility near Two Rivers, Wisconsin in Manitowoc and Kewaunee counties.

In its April presentation to analysts, WEC said that We Energies' 100-MW Badger Hollow Solar Farm Phase 2 received approval for construction from the Wisconsin Public Service Commission on February 21, 2020.

We energies also owns the 150-MW Dedicated Renewable Energy Resource pilot facility and the 35-MW Solar Now pilot facility.