U.S. Energy Department Announces $2.5 Billion Conditional Commitment for Wisconsin Clean Energy Projects

The U.S. Energy Department on Dec. 13 announced a $2.5 billion conditional loan guarantee for Wisconsin Electric Power Company, a subsidiary of WEC Energy Group, to finance a portfolio of clean energy projects in Wisconsin. The portfolio would add more than 1,650 megawatts of utility-scale renewable power and energy storage. This diverse portfolio is expected to create a more resilient and stable electricity supply in the event of extreme weather.

The projects are expected to include utility-scale solar, hydropower, energy storage, and wind. Once operational, these clean energy projects will lower the cost of utility bills for the utility’s 1.1 million electricity customers.

The loan is a part of the Energy Infrastructure Reinvestment, EIR, program established by the 2022 Inflation Reduction Act. Under the EIR category, the department announced a $816 million conditional loan in October, for solar and battery projects in Puerto Rico.

This program helps fund energy infrastructure projects to avoid, decrease, store, or make use of greenhouse gases and air pollutants. To qualify for an EIR loan, which offers a lower interest rate than traditional capital financing, an electric utility is required to demonstrate that financial benefits from the loan guarantee are passed on to the customers or communities it serves.

This conditional commitment marks the first EIR project under the department’s flexible loan facility and disbursement approach designed specifically for regulated, investment-grade utilities.