We are in the midst of a climate crisis, yet Wisconsin utilities are proposing to build new fossil fuel plants instead of planning for a 100% clean & equitable energy future. Dairyland Power has proposed to build the 525-625 MW Nemadji Trail Energy Center in Superior, WI. Not only is fracked gas a risk for our climate and communities located near fracking - it is a risk for Wisconsin customers. New information released by the Sierra Club shows that this proposed fracked gas plant will leave WI customers on the hook for hundreds of millions of dollars in stranded costs. A fossil fuel power plant is considered stranded when the cost to keep it running is more than the cost of building and operating new clean energy resources.
Sierra Club compared the costs of building new fracked gas plants with the cost of meeting the same needs with a clean energy portfolio (CEP) using a methodology and algorithm developed by Rocky Mountain Institute.
Here’s what we found:
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Clean energy is cheaper: The Nemadji Trail Energy Center proposed combined cycle gas plant is more expensive than CEPs that provide the same energy, peak capacity, and ramping characteristics. That means clean energy is just as reliable as fossil fuels, but with a lower price tag. Building those CEPs instead of the proposed gas plant would save ratepayers across Minneasota and Wisconsin nearly $600 million. Clean energy is not only cost competitive in the Midwest today, but also avoids the risks associated with building new gas plants. While the explosion in fracked gas has created a glut in the market today, analysts predict that market prices will rise.
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Gas plants will be stranded assets: Even if this gas plant is built, it will be stranded by CEPs within a decade. That is, building new clean energy will be cheaper than the costs of operating the gas plant in less than 10 years. Any sensible utilities commission would be forced at that time to switch to a clean energy option since it would be cheaper for ratepayers going forward. Unfortunately, the ratepayers will still be straddled with debt from these gas plants that could have been easily avoided. We find that the Nemadji Trail Energy Center would be stranded within 8-10 years, a much shorter time than the intended life of these gas plants.
- Clean energy is imperative for stopping climate change: In order to meet climate goals, we need to go further than simply replacing one fossil fuel, coal, with another, like gas. Switching to clean energy achieves larger, more impactful emissions reductions. Nemadji Trail Energy Center’s projected greenhouse gas emissions are 1.7 million metric tons per year, including estimated upstream emissions due to leakage.
We don’t need these fracked gas plants. Join Sierra Club in opposing new fracked gas infrastructure in Wisconsin.