Reports related to this article:
Project(s): View 2 related projects in PECWeb
Plant(s): View 6 related plants in PECWeb
Released January 08, 2018 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--To better balance its generating resources and customer demand for electricity, WEC Energy Group Incorporated (NYSE:WEC) (Milwaukee, Wisconsin) announced plans late last year to retire about 1,800 megawatts (MW) of coal-fired generation and add about 350 MW of utility-scale solar and 180 MW of natural gas-fired generation by 2020.
WEC Energy Group operates electric utilities in Wisconsin and Michigan. It also operates gas utilities in Illinois and Minnesota. The company's two Wisconsin-based electric utilities are We Energies (Milwaukee, Wisconsin) and Wisconsin Public Service Company (WPS) (Green Bay, Wisconsin). Those two utilities plan to retire these coal-fired power plants over the next three years:
In an interview, WEC spokesperson Amy Jahns said the WPS unit plans to purchase about 200 MW of generation from a planned solar farm. The We Energies subsidiary plans to purchase about 150 MW of solar from a second solar farm. She said the projects to be built, the developers and their locations all were undetermined. Both projects are scheduled to be operating by 2020, she said.
"These steps are part of our generation reshaping," she told Industrial Info. "Right now, we have significantly more electric generation capacity that demand. With sustained low natural gas prices, dramatic reduction in renewable generation costs, particularly solar, and no near-term electric load growth, this plan is a way to better balance supply and demand."
In announcing its generation reshaping plan in late November, WEC said it was making plans to reduce power generation costs, reduce carbon emissions, preserve fuel diversity and maintain reliability. It said it "will work with industry partners, environmental groups and the state of Wisconsin to reduce carbon dioxide (CO2) emissions by approximately 40 percent below 2005 levels by 2030."
At the end of 2016, approximately 51% of WEC's electricity was generated from coal, Jahns said. About 24% came from natural gas and 25% came from carbon-free sources like solar and wind. By 2030, she predicted, WEC's generation mix will be one-third coal, one-third gas and one-third carbon-free generation.
"The steps the WEC Energy Group is taking is yet another demonstration of how low-cost natural gas and improving renewable generation technology are reshaping the nation's generation fleet," said Britt Burt, Industrial Info's vice president of research for the Global Power Industry. "The Pleasant Prairie Power Plant came online during the Reagan administration, and it received a $325 million environmental upgrade about a decade ago. But the industry's move toward cleaner, lower-cost energy, coal-fired generation is coming at the expense of coal power."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
WEC Energy Group operates electric utilities in Wisconsin and Michigan. It also operates gas utilities in Illinois and Minnesota. The company's two Wisconsin-based electric utilities are We Energies (Milwaukee, Wisconsin) and Wisconsin Public Service Company (WPS) (Green Bay, Wisconsin). Those two utilities plan to retire these coal-fired power plants over the next three years:
- We Energies' 1,190-megawatt Pleasant Prairie Power Station in the second quarter of 2018, pending approval by Midcontinent Independent System Operator
- We Energies' 350-MW Presque Isle Power Station by mid-2019
- We Energies' 100-MW share of Edgewater Generating Station Unit 4 by end of September 2018
- WPS' 200-MW J.P. Pulliam Generating Station in late 2018
In an interview, WEC spokesperson Amy Jahns said the WPS unit plans to purchase about 200 MW of generation from a planned solar farm. The We Energies subsidiary plans to purchase about 150 MW of solar from a second solar farm. She said the projects to be built, the developers and their locations all were undetermined. Both projects are scheduled to be operating by 2020, she said.
"These steps are part of our generation reshaping," she told Industrial Info. "Right now, we have significantly more electric generation capacity that demand. With sustained low natural gas prices, dramatic reduction in renewable generation costs, particularly solar, and no near-term electric load growth, this plan is a way to better balance supply and demand."
In announcing its generation reshaping plan in late November, WEC said it was making plans to reduce power generation costs, reduce carbon emissions, preserve fuel diversity and maintain reliability. It said it "will work with industry partners, environmental groups and the state of Wisconsin to reduce carbon dioxide (CO2) emissions by approximately 40 percent below 2005 levels by 2030."
At the end of 2016, approximately 51% of WEC's electricity was generated from coal, Jahns said. About 24% came from natural gas and 25% came from carbon-free sources like solar and wind. By 2030, she predicted, WEC's generation mix will be one-third coal, one-third gas and one-third carbon-free generation.
"The steps the WEC Energy Group is taking is yet another demonstration of how low-cost natural gas and improving renewable generation technology are reshaping the nation's generation fleet," said Britt Burt, Industrial Info's vice president of research for the Global Power Industry. "The Pleasant Prairie Power Plant came online during the Reagan administration, and it received a $325 million environmental upgrade about a decade ago. But the industry's move toward cleaner, lower-cost energy, coal-fired generation is coming at the expense of coal power."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
