Dive Brief:
- Minnesota Power will produce a third of its power from renewable sources by 2028, while also utilizing a third coal and natural gas respectively.
- The utility plans to cease coal operations at Taconite Harbor Units 1 and 2 in Schroeder, Minn., by the end of 2020.
- The company will add up to 300 MW of gas-fired generation to its portfolio within the next decade, and also intends to build both large- and small-scale solar generation facilities.
Dive Insight:
Minnesota Power has sketched out the next steps in its EnergyForward plan, calling for more renewables and lower cabon emissions over the next decade and a half.
Introdiced in 2013, the utility's EnergyForward plan aims to generate a third of the company's power from renewable sources, a third from gas and the remainder from coal within 15 years.
According to an updated road map from the utility, plans now call for economic idling of the company’s Taconite Harbor Energy Center in the fall of 2016, followed by ceasing coal operations there in 2020. Minnesota Power will also add between 200 MW and 300 MW of gas generation, build out its solar assets and expand on energy efficiency savings.
"Minnesota’s energy landscape continues to evolve, and EnergyForward is helping our region
adapt to changing policy in ways that protect affordability and uphold reliability for our customers,”
ALLETE Chairman, President and CEO Alan Hodnik said in a statement. “This is Minnesota Power’s way of answering the nation’s call to reduce carbon and mitigate climate change."
Hodnik said the cost of building and fueling natural gas generation has dropped significantly in recent years, meaning the utility can "reduce cost risks for customers by adding this least-cost resource.”
The company plans to cease coal operations at Taconite Harbor Units 1 and 2 in Schroeder, Minn., by the end of 2020. But as part of the transition, assisted by lower cost natural gas, Minnesota Poiwer will econimically idle Taconite Harbor in the fall of 2016.
"The decision to idle the plant rather than close it completely in the near-term will give the company
more flexibility during a period of time when considerable change is occurring in energy supply and
policy," the utility said. "If necessary, with appropriate notice, the idled units can be restarted and produce electric power to maintain grid reliability."
The utility also plans to further reduce emissions and continue operating two smaller units at its largest generating station, the Boswell Energy Center.
“Planning for a smooth evolution away from our smaller coal units is an important part of EnergyForward,” said Minnesota Power Vice President of Strategy and Planning Al Rudeck.