ALLETE's Red Barn wind project to help WEC Energy ramp USD 2bn renewables commitment by 2025

Wisconsin will see a flood of new clean energy development soon as WEC subsidiary Wisconsin Public Service Corporation starts to ramp the implementation of the USD 2bn new renewable generation capital commitment plan it announced last fall.

The company said it would invest that commitment into new renewable generation by 2025. And it is clear they want to stick to that schedule.

One of the first major new projects tied into their goal is WPSC’s largest wind farm in the state, forecast to be in operation before the end of 2022, according to WEC spokesman Matt Cullen.

On 25 March, the company, along with Madison Gas and Electric, jointly filed with the Public Service Commission of Wisconsin seeking approval to purchase the 91.6 MW Red Barn Wind Energy Generating Station in Grant County and asked that the Commission make its decision by 1 December so construction can begin in January 2022 and operations can commence by 31 December 2022. The application puts the total cost of the project's acquisition at around USD 162m.

“[Red Barn Wind] fits within those goals that we have set out,” Cullen said in an interview with NPM. “The announcement of that USD 2bn investment in new solar, wind and battery storage projects was announced back in November as part of WEC Energy Group's new ESG (Environmental, Social and Corporate Governance) progress plan, which is an aggressive plan to cut emissions, improve our environmental footprint, maintain superior reliability and deliver significant savings for our customers.”

ALLETE is on board to acquire the project from PRC Wind and handle construction. Most of the planned capacity will be bought by Wisconsin Public Service Corporation. The WEC subsidiary will acquire 82.44 MW of power from the site, while Madison Gas and Electric will acquire 9.16 MW, if the project is approved. This is the first time WPSC has worked with ALLETE.

But the two utilities looking to purchase the project’s capacity have worked together extensively in the past, most recently on new generation projects that, once complete, will play a role in WEC reaching their USD 2bn commitment.

“This is a continuation of a partnership that we have had with Madison Gas and Electric, most notably, and most recently, through our combined ownership of utility scale solar facilities here in the state of Wisconsin, including the state's first ever large scale-utility solar project, the Two Creek Solar Park located in northeastern Wisconsin in Manitowoc County. WPS owns 100 MW of that facility, with Madison Gas and Electric owning 50 MW of the facility. It is 150 MW in total. But that achieved commercial operation in November of last year,” Cullen said. “And I know for the (200 MW) Paris Solar-Battery facility, and for the Darien Solar Energy Center, Madison Gas and Electric would also own a portion of those facilities as well, along with WPS, and our sister company, at WEC Energy Group, WE Energies. So, Madison Gas and Electric would be a partner in those two new solar facilities as well. And then also, Madison Gas and Electric would be one of the co-owners of the Badger Hollow Solar Park in southwestern Wisconsin, which is currently being constructed.”

The company has also expressed its desire to have a portfolio that is net-zero carbon emissions by 2050, and to lower its emissions 70% from a 2005 baseline by 2030. Based on preliminary data for last year, company representatives said in the Red Barn filing, WPSC has already reduced its emissions by 50% of the 2005 baseline. The acquisition of power from Red Barn would continue the company along that path, WPSC representatives said.

MG&E is hoping to purchase power from Red Barn to keep pace with planned retirements of “legacy” generation facilities and the upcoming expiration of past PPAs, the filing said. The company will need to acquire more than 250 MW of clean energy by 2024 to do so. The project is permitted for up to 29 turbines and will sit across roughly 12,220 acres in the towns of Wingville and Clifton, Wisconsin. Keeping to the schedule outlined (bringing the project to operation by the end of 2022) will allow the project to be eligible for 80% production tax credits, the filing reads.

“Our focus is on investing in facilities that will help us deliver a bright, sustainable future by reducing carbon emissions, reducing costs to our customers and preserving a diverse mix of generation facilities,” Cullen said. “We also focus on working with highly-experienced developers who have a proven track record of developing large-scale renewable energy facilities. The Red Barn Wind Farm would help us achieve these goals.”