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Released November 11, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Midwest utility holding company Alliant Energy Corporation (NASDAQ:LNT) (Madison, Wisconsin) is forecasting capital expenditures (capex) of $8.5 billion for 2023 through 2026--about half of which is allocated to renewable-energy generation--up from $6.1 billion from 2022 through 2025. Industrial Info is tracking 32 capital-spending projects for Alliant Energy, including 11 attributed to solar projects in Wisconsin.
This year's capex includes $775 million in renewable-generation projects, or about half of the total capex for the year. The following year is projected to see $900 million worth of such projects; 2024 would see $1.2 billion, out of $2.4 billion in net capex, followed by a decline to $725 million in 2025.
The expenditures are driven largely by two factors, according to Chief Executive Officer John Larsen, who cited the Inflation Reduction Act (IRA) as one of the factors: "Our success in advancing and executing our capital projects this year has us well-positioned to take advantage of the many customer benefits from the IRA. An example of this was our fast pivot away from tax equity to full ownership of our solar projects."
The other contributing factor, according to Larsen, is the Midcontinent Independent System Operator's (MISO) (Carmel, Indiana) now-approved changes to the seasonal capacity construct, which among others involves moving from an annual auction to seasonal auctions: "This new construct will advance our need for dispatchable and flexible generation capacity ensuring reliable service to our customers, no matter the season."
Larsen said the company expects two Wisconsin solar projects to be operational by the end of the year: the Wood County solar plant in Wisconsin Rapids, with a generating capacity of 150 megawatts (MW), and the 50-MW North Rock PV Solar Farm in Fulton. Both projects will utilize bifacial, photovoltaic (PV) and single-axis tracking modules for solar generation. A 75-MW battery energy storage system (BESS) addition at Wood County is planned to kick off in April 2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Industry Project Database can click here for the related project reports.
Alliant also is at work on another solar-plus-BESS project. Construction of the 200-MW, Grant County PV Solar Energy Center is expected to be completed in November 2023, and a 100-MW BESS addition is planned to kick off in May 2024. Subscribers can see reports on the solar and BESS projects.
On the most recent earnings conference call, Chief Financial Officer Robert Durian said the company is currently seeking regulatory approval to construct 175 MW of battery storage in Wisconsin. Regarding future growth projects, he added: "In conjunction with our updated capital expenditure plan, we expect to make regulatory filings in both Iowa and Wisconsin in 2023 for additional renewables and dispatchable resources..."
Alliant's renewable-energy projects are part of its "Clean Energy Blueprint" to reach net-zero carbon emissions by 2050 and end its use of coal by 2040.
The company reported third-quarter profit of $227 million, down from $256 million year over year, but Durian expects fourth quarter and full-year 2022 earnings to see strong growth--in part from "increasing investments in Wisconsin solar projects."
Subscribers to Industrial Info's GMI database can click here for a full list of active capital-spending projects for Alliant Energy.
Click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
This year's capex includes $775 million in renewable-generation projects, or about half of the total capex for the year. The following year is projected to see $900 million worth of such projects; 2024 would see $1.2 billion, out of $2.4 billion in net capex, followed by a decline to $725 million in 2025.
The expenditures are driven largely by two factors, according to Chief Executive Officer John Larsen, who cited the Inflation Reduction Act (IRA) as one of the factors: "Our success in advancing and executing our capital projects this year has us well-positioned to take advantage of the many customer benefits from the IRA. An example of this was our fast pivot away from tax equity to full ownership of our solar projects."
The other contributing factor, according to Larsen, is the Midcontinent Independent System Operator's (MISO) (Carmel, Indiana) now-approved changes to the seasonal capacity construct, which among others involves moving from an annual auction to seasonal auctions: "This new construct will advance our need for dispatchable and flexible generation capacity ensuring reliable service to our customers, no matter the season."
Larsen said the company expects two Wisconsin solar projects to be operational by the end of the year: the Wood County solar plant in Wisconsin Rapids, with a generating capacity of 150 megawatts (MW), and the 50-MW North Rock PV Solar Farm in Fulton. Both projects will utilize bifacial, photovoltaic (PV) and single-axis tracking modules for solar generation. A 75-MW battery energy storage system (BESS) addition at Wood County is planned to kick off in April 2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Industry Project Database can click here for the related project reports.
Alliant also is at work on another solar-plus-BESS project. Construction of the 200-MW, Grant County PV Solar Energy Center is expected to be completed in November 2023, and a 100-MW BESS addition is planned to kick off in May 2024. Subscribers can see reports on the solar and BESS projects.
On the most recent earnings conference call, Chief Financial Officer Robert Durian said the company is currently seeking regulatory approval to construct 175 MW of battery storage in Wisconsin. Regarding future growth projects, he added: "In conjunction with our updated capital expenditure plan, we expect to make regulatory filings in both Iowa and Wisconsin in 2023 for additional renewables and dispatchable resources..."
Alliant's renewable-energy projects are part of its "Clean Energy Blueprint" to reach net-zero carbon emissions by 2050 and end its use of coal by 2040.
The company reported third-quarter profit of $227 million, down from $256 million year over year, but Durian expects fourth quarter and full-year 2022 earnings to see strong growth--in part from "increasing investments in Wisconsin solar projects."
Subscribers to Industrial Info's GMI database can click here for a full list of active capital-spending projects for Alliant Energy.
Click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
