Wisconsin regulators have authorized three of the state’s utilities to spend nearly $478 million on a second solar farm with battery storage.
The Public Service Commission voted unanimously Thursday to approve the purchase of the 325-megawatt Darien Solar Energy Center under development in Walworth County, which will provide enough energy for about 75,000 homes.
WEC Energy Group subsidiaries We Energy and Wisconsin Public Service Corporation will together own 90% of the project. Madison Gas and Electric will own the remaining 10%, representing an investment of $47.4 million.
WEC says the Darien project is needed to help meet capacity requirements as the company retires about 1,385 megawatts of coal-fired power plants over the next four years. MGE is seeking to replace its share of the coal-fired Columbia Energy Center, which is scheduled to shut down by 2026, as well as expiring power purchase contracts.
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Both companies say they are trying to eliminate carbon emissions by 2050, which scientists say is necessary to mitigate the worst impacts of climate change.
“The Darien Solar Energy Center is an important part of our plan to aggressively reduce greenhouse gas emissions while providing customers affordable, reliable and clean energy,” WEC president Scott Lauber said. “Combining utility-scale solar with battery storage will allow us to extend the benefits of renewable energy and provide our customers sunshine after sunset.”
MGE president Jeff Keebler said the company’s investments in “cost-effective, clean energy and battery storage technology help ensure that all our customers will experience the economic and environmental benefits of our clean energy transition.”
The utilities said buying the Darien project would cost ratepayers less than continuing to run the coal plants.
PSC staff determined the Darien project was the best alternative in nearly every scenario analyzed, although it also found that doubling investment in energy efficiency would be cost effective.
The Public Service Commission voted Thursday to approve a nearly $367 million revenue increase for subsidiaries of the WEC Energy Group, including We Energies and Wisconsin Public Service Corp.
The commission did not analyze the benefits of simply buying the plant’s output, though the utilities argued owning it would allow them to extend the lifespan, repower them or use the sites for other generators in the future without the cost of additional transmission lines.
Owning the plant also allows the utilities to earn a nearly 10% profit on their investment.
The PSC voted last year to authorize Chicago developer Invenergy to build the 250-megawatt solar farm with 75-megawatt battery storage facility on about 2,000 acres between Delavan and the Rock County line.
Construction began in April, according to a quarterly progress report, and the project is expected to be in service by late 2024. Invenergy is also under contract to operate and maintain the plant once completed.
Earlier this year the commission voted to authorize WEC and MGE to buy a 200-megawatt solar farm with 110-megawatt battery under construction in Kenosha County for $433 million.
The Public Service Commission voted 2-1 Thursday to issue a ruling that a family can lease solar panels from a company other than a regulated utility.
The commission is currently considering the utilities’ request to purchase a 465-megawatt solar and storage project near Cambridge for $649 million.
Construction on the 2,400-acre project, known as the Koshkonong Solar Energy Center, is scheduled to begin in October, although the town of Christiana has challenged the construction permit in the courts.