The Midcontinent Independent System Operator (MISO) has announced the approval of a $21.9 billion long-range transmission plan. This ambitious initiative, known as the Long Range Transmission Planning Tranche 2.1, is expected to bolster grid reliability, accommodate growing energy demands, and support decarbonization efforts across its Midwest coverage area.
Key Details of the Transmission Plan
Construction of a 765kV Transmission Backbone
The centerpiece of the plan involves the construction of a 765kV transmission backbone that will span approximately 1,800 miles. This extensive infrastructure will connect directly to PJM Interconnection’s 765kV system in Illinois, Indiana, and Ohio.
These new transmission lines are designed to:
- Enhance power flows across the Midwest.
- Mitigate the effects of extreme weather events on the grid.
- Reduce congestion and address local transmission constraints.
Timeline and Benefits
If state regulators grant approval, MISO anticipates that the projects will be operational between 2032 and 2034. The organization estimates that the new infrastructure could generate $23 billion to $72 billion in net benefits over 20 years by reducing capacity costs, improving grid reliability, and advancing decarbonization goals.
According to Jeremiah Doner, director of cost allocation and competitive transmission at MISO, “The main thing we want is getting these transmission projects in service … Our biggest concern is the longer that uncertainty is out there, the longer it potentially prevents projects from getting in service.”
Supporting Data Center Growth and New Industries
Increased Demand from Data Centers
MISO’s plan highlights the pivotal role of data centers in driving energy demand growth. By 2044, Minnesota and North Dakota alone are expected to witness an additional 4GW of demand from data centers. This surge is attributed to the proliferation of artificial intelligence (AI) and cloud-based applications.
The organization forecasts an increase of 149-241TWh in energy demand across its coverage area by 2044, largely fueled by the expansion of data centers, new domestic industries, and green hydrogen initiatives.
Regional Impact and Load Distribution
While data centers are projected to dominate load growth in northern regions, new domestic industries are anticipated to drive demand in the southern parts of MISO’s territory. This diversification underscores the need for robust transmission infrastructure to handle varying energy demands across states.
Addressing Interconnection Challenges
Current Constraints
Despite the approval of the long-term plan, MISO faces significant challenges with its interconnection queue. The backlog has been identified as a key constraint to growth, prompting the utility to explore solutions for expediting project approvals.
Fast-Track Interconnection Review
To address these issues, MISO plans to file an “expedited resource adequacy study” process with the Federal Energy Regulatory Commission (FERC) by February 28, 2025. The proposed rules are expected to take effect by June 1, 2025, streamlining the interconnection review process for critical generating projects.
Balancing Immediate and Long-Term Needs
Bridging Mechanisms for Power Supply
In a bid to meet immediate energy needs, MISO’s president and COO, Clair Moeller, has suggested that data centers consider gas-fired generation as a temporary solution. Moeller emphasized the importance of leveraging all available resources to accommodate the rapid buildouts by data center operators.
Decarbonization as a Long-Term Goal
While gas-fired generation serves as a bridging mechanism, the ultimate objective remains the transition to low-carbon energy sources. The approved transmission projects are expected to play a critical role in facilitating this shift.
About MISO
MISO oversees the electric transmission system across parts of 15 Midwest and Southern states, including Illinois, Indiana, Iowa, and portions of Texas, as well as the Canadian province of Manitoba. The organization’s expansive network and strategic planning aim to ensure grid reliability and meet evolving energy demands.
FAQ: Understanding MISO’s Long-Term Transmission Plan
1. What is the purpose of the new transmission lines?
The 765kV transmission backbone aims to improve power flows, reduce congestion, address local grid constraints, and enhance resilience against extreme weather events.
2. How will this plan benefit the Midwest region?
The plan is expected to generate $23 billion to $72 billion in net benefits over 20 years by reducing capacity costs, improving grid reliability, and supporting decarbonization.
3. When will the projects be completed?
MISO anticipates that the projects will be operational between 2032 and 2034, pending state regulatory approval.
4. How will data centers influence energy demand?
Data centers are projected to drive significant energy demand growth, particularly in northern regions like Minnesota and North Dakota, due to AI and cloud computing applications.
5. What steps is MISO taking to address interconnection delays?
MISO is developing an expedited resource adequacy study process to streamline approvals for critical generating projects, with new rules expected by mid-2025.
