Net-Zero Carbon Electricity by 2050
Madison Gas and Electric (MGE) is working toward a more sustainable future for the benefit of all its investors, employees, customers and the broader community. The company is targeting net-zero carbon electricity by 2050.
"In creating an energy future for our customers and shareholders, we need ambitious and crucial reductions in carbon emissions that align with the work of the scientific community, specifically the Intergovernmental Panel on Climate Change and its assessment of limiting global temperature increases to 1.5 degrees Celsius," MGE Chairman, President and CEO Jeff Keebler said. "Our net-zero carbon goal is aggressive, and it will require technologies not yet commercially available or cost-effective, but it is where we need to be."
Strategies for Deep Decarbonization
MGE already has been on a path toward reduced carbon emissions, having previously established a carbon reduction goal of at least 80% by 2050 from 2005 levels. The U.S. Mid-Century Strategy (MCS) for Deep Decarbonization identifies greenhouse gas emissions reductions of 80% by 2050 (from 2005 levels).
In early 2022, MGE committed to achieving carbon reductions of at least 80% by 2030. Since 2005, MGE has reduced its carbon emissions 30%.
The MCS is the United States' strategy for meeting the goals of the Paris Agreement on climate change to limit global warming. Both the Intergovernmental Panel on Climate Change and the MCS rely on decarbonizing electric generation, using energy efficiently, and electrifying other energy uses, including transportation. These are the strategies MGE is pursuing and will continue to pursue to achieve deep decarbonization and net-zero carbon electricity. If we can go further faster by working together with our customers, we will.
See MGE's Corporate Responsibility and Sustainability Report for additional information.
In November 2015, MGE announced its Energy 2030 framework, which laid out the company's foundational objectives for building your community energy company for the future:
- Provide customers with options they want today and in the future,
- Help customers use energy efficiently and control future costs for all customers,
- Transition MGE to a more environmentally sustainable energy supply,
- Provide a dynamic electric grid that can integrate energy technologies to serve all customers, and
- Ensure that new and changing technology serves all customers equitably.
- Deepen our engagement with the community.
Since announcing Energy 2030, MGE has developed projects that are expected to increase the company's owned renewable capacity by more than nine times by year-end 2024. MGE will continue to seize opportunities and take advantage of new, evolving technologies to advance its carbon reduction goals.
MGE is working to achieve a more sustainable energy future using the best, most cost-effective technologies as they become available. MGE already has taken action toward its goals:
Saratoga Wind Farm:
Red Barn Wind Farm: In early 2022, MGE received state regulatory approval to purchase a 10% share of the 92-megawatt (MW) Red Barn Wind Farm to be built in Grant County. Construction is expected to begin in 2022.
The company built its largest wind farm in Saratoga, Iowa
. The investment grows MGE-owned wind generation by 160%.
Forward Energy Center Wind Farm:
In 2018, the company purchased a share of the Forward Energy Center wind farm, which—when combined with Saratoga—grows MGE-owned wind generation by more than 200%.
New Solar Projects:
We received regulatory approval to build two large solar projects
with WEC Energy Group.
- The Two Creeks Solar project, providing 50 MW, became operational in November 2020.
- The first phase of the Badger Hollow Solar Farm in Iowa County, Wis. came online in late 2021. The first phase provides MGE with 50 MW; another 50 MW is expected in 2022 when phase two is completed
MGE is also partnering with We Energies and Wisconsin Public Service (WPS) to purchase shares of the following projects:
- The Paris Solar-Battery Park. MGE will own 20 MW of solar energy and 11 MW of battery storage from this 200-MW solar park to be built in in Kenosha County, Wis. MGE's share of the Paris Solar-Battery Park will power about 6,000 households. The project is expected online in 2023.
- The Darien Solar Energy Center. If approved by regulators, MGE will own 25 MW of solar energy and 7.5 MW of battery storage from the 250-MW solar park to be built in the Town of Bradford in Rock County and the Town of Darien in Walworth County.
- The Koshkonong Solar Energy Center. If approved by regulators, MGE will own 30 MW of solar energy and 16.5 MW of battery storage from the 465-MW solar and battery storage facility located in the Towns of Christiana and Deerfield in Dane County.
MGE's unique Shared Solar project
in partnership with the City of Middleton, Wis., came online in early 2017. MGE expanded the program in 2020 with a new 5-megawatt solar installation, Morey Field Solar at Middleton Municipal Airport. Seventy percent of the array serves the Shared Solar program.
Renewable Energy Rider (RER):
Under this program, MGE partners with large customers on customized renewable energy solutions. Dane County and MGE partnered under this program to build a 9-MW solar array on county-owned land at Dane County Regional Airport. MGE owns the solar infrastructure, leases the land from Dane County and sells the energy to Dane County. The array became operational in December 2020.
Thirty percent of the 5-MW Morey Field Solar project in Middleton serves two RER customers, the Middleton-Cross Plains Area School District and the City of Middleton. The array came online in August 2020.
In spring 2021, the 20-MW O'Brien Solar Fields in Fitchburg, Wis., began serving several large customers, including the City of Fitchburg, the University of Wisconsin-Madison, the Wisconsin Department of Administration and a number of local businesses. The project, built under MGE’s RER program, is currently the largest solar project in Dane County.
The 8-MW Hermsdorf Solar Fields project in southeast Madison provides solar energy to the City of Madison and the Madison Metropolitan School District under our RER program. It is expected to increase renewable energy use in City operations by nearly 20% and by about 16% for the school district.
The RER model is designed to meet the needs and goals of companies or organizations that support or have signed on to the Corporate Renewable Energy Buyers' Principles, a collaboration facilitated by the World Resources Institute and the World Wildlife Fund.
Transition from Coal:
MGE has no controlling interest in coal-fired generation and announced several years ago that it has no plans for additional coal resources. The company’s transition away from coal is ongoing.
MGE reduced its ownership share in the Columbia Energy Center, one of two coal plants in which MGE is a minority owner. In February 2021, MGE and the plant's co-owners announced plans
to retire the power plant earlier than initially planned. In June 2022, the co-owners of Columbia announced plans to shift the full retirement of Columbia by 18 months to June 2026. The updated timeline addresses the need for capacity as the energy industry, like many industries, experiences supply chain challenges in bringing replacement generation resources online.
In late 2021, MGE announced plans to eliminate coal-fired generation from its portfolio by the end of 2035. MGE is a minority owner of the coal-fired Elm Road Generating Station in Oak Creek, Wis. By working with the plant’s co-owners to transition to natural gas as the primary fuel source at Elm Road, MGE expects coal to be used only as a backup fuel by 2030, and the company expects the elimination of coal as a fuel source at Elm Road by the end of 2035, at which point MGE will no longer own any coal-fired generation.
Enabling new technologies, such as electric vehicles (EVs) and smart home technology, is a priority under MGE's Energy 2030 framework.
Energy 2050 Together Website:
- EV Charging: MGE is a utility leader in EV charging with a network of public charging stations that operates on 100% clean energy, an EV home charging program and other programs for employers and multifamily property owners to install charging stations at workplaces and residential properties. MGE is working to serve a growing EV market and to reduce carbon emissions.
- Partnerships: MGE is partnering with the City of Madison's Metro Transit, which serves the majority of MGE's electric service territory with public transit, to facilitate electric buses and charging infrastructure. The City has a goal to electrify its bus fleet. MGE is providing financial and in-kind support as well as expertise to support the City's electrification efforts. MGE also is partnering with the Madison Fire Department to provide fast charging for its first electric fire truck, which began serving the east side of Madison in 2021.
- Smart Thermostat Program: This program is testing how MGE can reduce peak electric demand through the use of smart thermostats to manage air conditioners. MGE is meeting another objective under Energy 2030 to deepen customer engagement around energy efficiency and conservation.
- Residential Battery Storage: In collaboration with the Electric Power Research Institute and residential electric customers, MGE is working with several homeowners who have a solar photovoltaic system and a battery installed outside their home. This project will help us understand how batteries operate in Wisconsin temperatures and how batteries could help control long-term costs by managing our collective use of energy. Battery storage also could provide enhanced reliability as we continue our transition to greater use of renewable resources.
- Managed EV Charging: MGE is partnering with Tesla drivers in our service territory to test how smart charging using vehicle telematics can save customers money and help plan for the impact of EVs on our grid. MGE anticipates expanding the project to other vehicle makes in the near future.
One of the ways in which MGE seeks to engage customers and keep customers informed of efforts to achieve deep decarbonization is through mge2050.com
, which features clean energy programs and projects, new technologies, such as EVs
, and energy-saving tips and information.