From solar farms to electric vehicles, 2024 will be a busy year in Wisconsin's clean energy transition

The new year is shaping up as a critical juncture in Wisconsin's clean energy transition.

New utility-scale solar farms, a coal plant decommissioning, a growing embrace of backup battery power and an electric vehicle charging network are all in the works, representing billions of dollars of investment in clean energy.

Meanwhile billions more in spending is expected as utilities upgrade their distribution systems to accommodate new and more dispersed renewable energy installations.

That spending is taking place against a backdrop of growing concerns about energy affordability following large increases in residential electric rates over the last two years.

Here's a rundown of key issues and trends to keep an eye on as Wisconsin's clean-energy transition continues in 2024:

New ways to ease energy burden for low-income households

The financial challenges of paying for heat and keeping the lights on has become a perennial issue for many low-income households.

Look for meaningful action in 2024 on two initiatives to help We Energies' least affluent customers that stem from its 2022 rate case.

First up, is modification and extension of the Low Income Forgiveness Tool, a program created by We Energies and Wisconsin Public Service Corp. that forgives a share of a customer's unpaid bills if they remain current in a payment program.

The utilities reported that customers in the program have paid about $13 million toward overdue bills that otherwise would have been written off. Modifications to the program approved this year by the Wisconsin Public Service Commission addressed customer service concerns and participation thresholds, but more work will be done this year.

A key issue still to be addressed is whether the program's required down payment of up to $600 will be reduced and by how much, said Antonio Butts, executive director of Walnut Way Conservation Corp. The Milwaukee neighborhood improvement group has been an active, pro-consumer voice since the 2022 rate hearings.

Walnut Way also has been actively involved in discussions with We Energies about creating a pilot program that would cap utility bills at 6% or less of household income.

Butts said he expects details to be ironed out this year and the program to be in place for 2025.

"I think the biggest opportunity coming out of the percentage-of-income program is that it is likely to be much more than a pilot in terms of being available, not to a limited group for a particular study," he said.

More:Should utility bills be based on ability to pay? It's under consideration in Wisconsin.

A new wave of utility-scale solar power comes online

Solar power has become the preferred renewable energy resource for Wisconsin utiities, and Madison-based Alliant Energy has been leading the charge.

The state's largest owner-operator of solar farms tripled its output in 2023 when six solar projects totaling 514 megawatts went online in December. Combined with three projects that went live in 2022, solar energy installations can power about 180,000 homes.

Another 325 megawatts of solar power will go live at three other Alliant installations by late February.

Meanwhile, We Energies this month announced completion of the second phase of the 300 megawatt Badger Hollow Solar Park in Iowa County, the first of three projects that will bring 600 megawatts of solar power on line this year.

By the end of the year, solar energy will provide about 4% of the electricity used in the state, said Michael Vickerman, clean energy deployment manager for RENEW Wisconsin, a nonprofit that promotes renewable energy. 

Independent renewable energy developers, some of which will look to sell their projects to utilities while others plan to operate installations themselves, have received approval for another 1,350 megawatts of solar power at six sites, five of which could be under construction in 2024 according to the companies' websites.

And a Philadelphia company, Doral Renewables LLC, is proposing to build the state's largest solar farm, at 1,300 megawatts, in Portage County. The company is expected to submit a permit application for the Vista Sands Solar Farm to the PSC this month.

Batteries coming as backup for windless, cloudy days

Utilities across the state are gearing up for new projects that will couple lithium-ion battery storage systems with solar energy parks and other developments.

Alliant this year will begin buildout of more than 1,000 megawatt-hours of battery energy storage at solar sites in Grant and Wood counties and at its Edgewater Generating Station in Sheboygan.

We Energies' Paris and Darien solar installations also will include battery storage. It is not clear when construction of that part of those projects will start.

As the first utility scale battery systems in the state, these projects can help balance solar energy production, which peaks around noon, and demand peaks that typically occur in late afternoon, Vickerman said.

"It will be quite interesting for me to see how easy it is to take that morning, early afternoon generation and store it for the later afternoon and early evening," he said.

Meanwhile, utilities will begin to experiment with alternative battery types that hold the promise of lower cost and longer-duration discharges.

• We Energies in spring will work with a German company, CMBlu, to test an organic battery that uses readily available chemical components.
• Alliant this spring will bring a proposal to the PSC to build a large, bag-like carbon dioxide battery at its Columbia Center. The battery technology was developed by Energy Dome, an Italian company.

We Energies begins shutdown of Oak Creek in May

We Energies will jump start a wave of Wisconsin coal plant closings in May when it takes two of four coal-fired generating units offline at its Oak Creek Power Plant. The remaining units are expected to shut down in 2025.

The shutdown is the next step in parent company WEC Energy Group's plan to end its use of coal by 2032.

The company is replacing the electricity produced by Oak Creek with new solar power generation from its Paris project and other sites, and a pending purchase of a share of Alliant's West Riverside Energy Center, a 3-year-old natural gas plant in Beloit.

"I think that's a very important milestone, because now you're seeing solar capacity actually displacing existing coal-fired capacity, not just simply electrons moving back and forth on the transmission system, but having an effect on the actual portfolio of WEC Energy as they start taking their older units offline," Vickerman said.

More:When a coal-plant closes: Inside We Energies' Oak Creek Power Plant as it is prepped for shutdown

Fixing a roadblock to broader adoption of electric vehicles in Wisconsin

Construction of a statewide electric vehicle charging network could get a boost soon from a change in state law regulating privately-operated EV charging stations.

A bill moving through the state Legislature would authorize operators of high-speed charging stations to charge customers by the kilowatt hour, or the amount of electricity they receive. Under current law only regulated utilities can directly sell electricity to customers.

With $78.5 million in federal funding at stake, changing the law has taken on new urgency. The funds, approved through the National Electric Vehicle Initiative, would cover up to 80% of the cost of building a 60-station, high-speed EV charging network along Wisconsin interstate and state highways. However, NEVI rules require those stations to be operated by private businesses that charge customers by the kilowatt hour.

Building a high-speed charging network along Wisconsin's interstates and state highways is seen as a key step in spurring increased adoption of electric vehicles in Wisconsin. The bill's Senate author, Sen. Howard Marklein, R-Spring Green, said business owners across the state are interested in operating charging stations, but can't find an affordable way to do it without financial assistance.

A hearing on the bill was held in December by state Senate and Assembly committees. The bill is supported by clean energy advocates, retailers, business associations and utilities.

The Wisconsin Department of Transportation has been planning for the initiative for two years and will be ready to request proposals almost immediately after a change in the law, DOT Secretary Craig Thompson said in December.

More:Bills aim to change state law to allow start of statewide electric vehicle charging network

New transmission lines and who will build them

A debate over who will build billions of dollars in new electric transmission lines in Wisconsin also could be decided this spring. A bill that would give Wisconsin transmission companies "right of first refusal" to build those projects was approved by the legislative committees that oversee utilities in November.

One one side of the debate are the state's utilities which, either directly or through affiliated companies, want the work and the revenue and control that comes with it. Their supporters include unions representing electrical workers and operating engineers, the Madison and Milwaukee area chambers of commerce, and the Wisconsin Economic Development Association.

Opposition to the bill includes consumer advocates, business organizations and other interest groups that argue that a competitive bidding process could save millions of dollars for consumers who already are reeling from high energy costs.

States across the country have adopted such bills in response to a federal rule requiring competitive bidding on regional transmission lines. The bidding is overseen by regional grid-management agencies.

In Wisconsin's and 14 other states, that's the Midstate Independent System Operator, or MISO, which has identified $10.3 billion in transmission projects across the region that will be needed in coming years to accommodate new clean energy generation and strengthen the electric-power grid.

More:Legislation aims to keep local control over new power line projects. Opponents fear higher prices.