
Three utilities in Wisconsin are seeking regulatory approval to acquire two solar and storage hybrid projects from Blackstone portfolio company Invenergy as part of a wider US$1.92 billion investment aimed at reducing carbon emissions across the state.
The two hybrid BESS projects are part of a five-project portfolio comprising 500MW of solar, 179MW of wind, and 100MW of battery storage located across Rock, Wood, Columbia, Iowa, and Grant counties in Wisconsin.
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The applications, outlining the specifics of the solar-plus-storage acquisitions, were jointly submitted by Wisconsin Electric Power Company (Wisconsin Electric), Wisconsin Public Service Corporation (WPSC), and Madison Gas and Electric Company (MGE) to the Public Service Commission of Wisconsin (PSC) during the last week of September.
Wisconsin Electric with lion’s share of BESS capacity
The two Invenergy projects forming part of the utilities’ future plans are known as the Dawn Harvest and Saratoga Solar Energy Centers, located in Rock and Wood counties, respectively. Both comprise 150MW of solar co-located with a 50MW/200MWh BESS connecting to the Midcontinent Independent System Operator (MISO) grid.
The utilities plan to split ownership of the two projects, with Wisconsin Electric taking the lion’s share of the BESS capacity from both facilities: 100% from Dawn Harvest (50MW) and 80% from Saratoga (40MW).
The remaining 10MW of BESS capacity from Saratoga will be split evenly between WSPC and MGE, with each set to receive 5MW.
US$2,000/kW+ for BESS portions
The utilities’ application for each acquisition is made up of an Asset Purchase Agreement (APA) and an Engineering, Procurement and Construction (EPC) agreement.
As outlined in the recent filings submitted with the PSC, the APA establishes a fixed price that the utilities will pay for solar and storage projects, which also includes land agreements, interconnection rights, and permits.
Although the price for the EPC agreements covers a defined scope of work, the three utilities noted that this price could change due to “unanticipated scope changes or force majeure events through no fault [of the utilities].”
The utilities are proposing to acquire the Dawn Harvest project for a total cost of approximately US$443 million, with the BESS portion expecting to cost US$105.8 million, equating to US$2,116/kW.
Costs for the Saratoga project are slightly higher overall at approximately US$451.5 million, but the BESS portion is expected to make up a smaller portion of the total cost at US$102.6 million, or US$2,052/kW.
The utilities stated that they opted to acquire the projects, as opposed to negotiating power purchase agreements (PPA) with Invenergy, so they’d have the option to repower the sites once the projects were brought offline by utilising existing interconnection agreements, leasing arrangements and permits.
A potential reduction in the cost of batteries during the life of the projects was also mentioned, which the utilities stated they could take advantage of as owners of the sites.
If approved, costs for the Dawn Harvest and Saratoga projects will be recovered through the utilities’ rate bases.
Construction to commence next year
The PSC has already greenlit construction of the Saratoga development after the regulator granted the project a Certificate of Public Convenience and Necessity (CPCN) last year. This is a prerequisite for electric generation facilities larger than 100MW in Wisconsin that developers must obtain before construction can take place.
Invenergy has also submitted a CPCN application for the Dawn Harvest development that is currently under review by the PSC.
Construction on both facilities is expected to commence in September 2025, with the Dawn Harvest facility expected online in September 2027, and the Saratoga project expected online eight months later in May 2028.
Once operational, the projects will be operated by Invenergy Services through separate Operation and Maintenance (O&M) Agreements.
Asset purchase strategy
The purchase of partially developed renewable assets has become somewhat of an effective strategy for utilities in Wisconsin, after four very similar acquisitions of developments incorporating battery storage occurring over the past few years.
The largest of these projects, known as the Koshkonong Energy Center located in Dane County and also under development by Invenergy, comprises 300MW of solar generation co-located with a 165MW BESS.
Similarly to the recent proposed acquisitions, the three utilities are set to share ownership of the project which is set to come online next year.
Approval of the acquisition was granted by the PSC in March 2023, as reported by Energy-Storage.news.
Carbon-free grid in Wisconsin by 2050
Wisconsin is one of 24 states in the US with clean energy goals, mandated by Executive Order 38 passed in 2019 by Governor Tony Evers setting the goal of a 100% carbon-free electricity grid by 2050.
The parent company of Wisconsin Electric and WPSC, WEC Energy Group, plans to eliminate coal as an energy source from its generation fleet by the end of 2032 and to reduce its overall carbon emissions by 80% from 2005 levels by 2030.
MGE has the same goal of an 80% reduction by 2030, and states that it’s already reached the 40% mark.