TUE AM News: Coal to drop to 13% of state’s energy mix by 2030, draft report shows; Evers, WEDC request $7.5M for Tech Hub effort

July 9, 2024

— The share of Wisconsin’s electricity generation coming from coal is set to drop from 27% in 2022 to just 13% in 2030, according to a draft report from the state Public Service Commission.

The PSC recently released a draft copy of its latest Strategic Energy Assessment, covering the state’s electricity supply over the coming six years.

As a result of planned coal retirements and new projects, natural gas is projected to rise from 22% to 28% of state energy generation. When combined into one fossil fuel category, coal and natural gas together would go from 49% to 41% between 2022 and 2030.

Meanwhile, wind will go from 19% to 24% and solar will rise from 3% to 14%. Plus, total CO2 emissions are projected to hit the 80% reduction target by 2030 from 2005 levels, report authors wrote.

The agency is taking public comments through Sept. 26 on the document, which is based on historical data and forecasts collected from utilities in the state. The final version of the SEA will include updated figures from utilities.

These electricity providers say they plan to retire about 3,100 megawatts of in-state generation by 2030, including three of the seven utility-scale coal plants operating in Wisconsin, which have combined capacity of about 2,800 MW. Under updated plans released in summer 2022, those three plants would be fully retired by 2026, according to the report.

Utilities say they plan to add about 6,000 MW of solar energy capacity, 3,400 MW of natural gas and 1,600 MW of wind power by 2030, complemented by about 1,000 MW of planned energy storage connected to planned solar projects.

The report also notes PSC staff conducted modeling for various scenarios with different CO2 emission reductions and electric demand growth. Under the framework for limited CO2 reductions, more natural gas resources were used in the model to meet the demand linked to planned retirement and long-term load growth.

Under the framework assuming “more aggressive” CO2 reductions — more in-line with utilities’ goals — the model used less natural gas and leaned more on renewable resources, such as solar, battery storage and wind.

This modeling also pointed to the need for “flex” resources, which have no carbon emissions, according to the report. Flex units have characteristics of reciprocating internal combustion engine, or RICE units, but with “extremely high” fuel costs, to ensure they’re only used when absolutely needed, the report shows. That could include traditional RICE units combined with carbon capture and storage, engines powered by hydrogen and more.

“These planning considerations and cost assumptions may evolve over time if cost profiles for existing resources change, or if future technological developments such as long-duration energy storage support the emergence of other cost competitive generation options,” report authors wrote.

Citizens Utility Board Executive Director Tom Content notes one drawback with the draft report is the data were submitted months ago, so more recent developments aren’t captured. He pointed to new planned data centers as one example, noting projected energy demand growth will be even higher than the report details.

“Data centers take a lot of energy, and the fact is that the entire utility industry nationally and regulators around the country are trying to figure out how the utility industry is going to meet the surge in demand that’s expected just from data centers,” he said yesterday in an interview. “Let alone all the reshoring of manufacturing and electrification and other trends that are expected to increase demand.”

He argues this issue of growing energy demand “and what it could cost customers really needs to be evaluated carefully” when the PSC comes out with its final report later this year. And he also said the SEA has more of a focus on resource planning than past reports.

“We appreciate that, and we think better planning is going to be critical,” he said.

The commission will hold a public hearing on the draft SEA on Aug. 14.

See the draft document here.

See coverage and video from a recent WisPolitics event where PSC Chair Summer Strand discussed the state’s energy outlook.

— Gov. Tony Evers and WEDC have requested the release of $7.5 million from the Legislature’s Joint Finance Committee to establish the state’s U.S. Regional Tech Hub, the governor’s office says.

Evers in February signed into law 2023 Wisconsin Act 96, which directs the Wisconsin Economic Development Corp. to provide $7.5 million to BioForward Inc., the lead consortium member for the state’s tech hub effort.

The bill stipulated that funding couldn’t be released by JFC until the effort landed federal grant funding, which occurred last week when state officials announced $49 million in U.S. Economic Development Administration funding for the 18-member consortium.

The law also says the grant funding can be used to create a “clinical workflow and supply chain support center” for image-guided therapies and theranostics, which rely on radioactive drugs for targeted treatments. It’s also meant for building a larger lab space and other expansions at consortium member Forward BIOLABS, as well as a workforce effort aimed at manufacturers and supply chain businesses.

Evers says the latest Tech Hub designation “is an exciting and pivotal moment” for Wisconsin, and calls on the Republican-controlled JFC to release the funds “without delay.”

“Wisconsin has long led the way in innovation, and our federal partners have put their trust in us to lead the way because they know that Wisconsin and our workforce are up for the challenge,” he said in a statement.

See the memo and release, and find more coverage on the recently announced funding.

See a recent story on a health screening initiative being launched through the tech hub effort.

— Amtrak’s Borealis line running through the Chicago-Milwaukee-St. Paul corridor had more than 18,500 riders in its first month of operation, the state Department of Transportation announced.

About 300 passengers are riding each of the eastbound and westbound trains passing between Illinois, Wisconsin and Minnesota, according to yesterday’s release. The trains leave St. Paul at midday and from Chicago in the late morning, with a ride time of about seven hours, the Amtrak website shows.

State DOT Secretary Craig Thompson notes the Borealis line is the first passenger rail expansion in Wisconsin in 22 years, and the initial ridership figures are promising.

“We’re hopeful the more people that ride Borealis and like it, the more successful it will be,” he said in the release.

And Ray Lang, vice president of Amtrak’s state supported service, says the route presents “tremendous opportunity” for the region.

“The ridership numbers we have seen so far confirm our belief and we expect this trend to continue as the service matures and we head into the peak summer travel season,” Lang said.

See the release and a map of the route.

— Peggy Williams-Smith, president and CEO of VISIT Milwaukee, told “UpFront” she has “no doubt” the economic impact from this month’s Republican National Convention will meet or exceed the group’s initial projections.

“I’m concerned for those businesses who may not have been able to get what they thought they were going to be able to get,” Williams-Smith said on the show, which is produced in partnership with WisPolitics. “But I will tell you that I’ve spoken with business owners all over the city who are making money on this convention, and it’s a lot of them, and it’s a lot of money. So I have no doubt that the numbers we put forth when we first brought this to the city and we talked about, it will come to fruition.”

Williams-Smith, who was instrumental in securing the convention for Milwaukee, said it will be an all-hands-on-deck effort the week of the convention for tourism and local officials.

“I can’t tell you how important this is for us,” she said. “It’s 15,000 journalists. My team has been on calls with media outlets from all over the world in the past couple months with people asking for stories that they can cover while they’re here. What should they do? Who should they talk to? We’ve got a communications committee that’s put together a pitch list that has gone to the journalists every time they’ve been here. We are ready.”

Williams-Smith said local leaders will also be closely watching protesters and activity outside the security perimeter.

“Those are things I can’t control,” Williams-Smith said. “I believe in the political process, and I believe in the process of free speech. And I think there will be stories that will help tell our stories through that process as well. But those are things I just can’t control. I’m not in charge of the police or Secret Service. So those are things I leave up to the people who are paid to be able to protect and make sure the city stays safe.”

See more from the show.

— LeadingAge Wisconsin has named Lisa Davidson as the group’s new president and CEO starting Aug. 5.

Davidson has held roles in the governor’s office, state Senate, state Department of Health Services and other nonprofit groups, according to the release from the long-term care organization.

Davidson says she’s excited to lead the group “at such a critical time” for long-term care services.

“While there are many challenges ahead, I know we will be a trusted voice in building capacity now and for the future,” she said.

Kathryn Brod has been serving as interim president and CEO, according to the LeadingAge Wisconsin website.

See the release.

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