State Economy
The population of the Hoosier State, Indiana is approximately 6.81 million people[1]. Indiana is the 17th most populated state in the United States.
In 2020, Indiana’s economy was ranked 18th in the United States in gross domestic product (GDP)[2]. The state’s economy is dependent on the automobile, steel, pharmaceutical, mining, transportation, and agriculture industries[3].
Environment Policies
In 2011, Indiana enacted a Clean Energy Portfolio Goal that all utilities sell 10% of their electricity from “clean energy” sources including clean coal technology and nuclear energy by 2025 [4].
In April 2021, Indiana’s utilities[5] used coal (53.5%), natural gas (32.1%), and renewable energy (14.4%) to generate electricity. Wind, solar, biomass, and hydropower are the primary types of renewable energy in Indiana.
In April 2021, the average cost of residential electricity in Indiana was 13.93 ¢ per kWh, compared to the national average of 13.76 ¢ per kWh.
Recent renewable energy developments in Indiana include:
- 280 MW Solar Project – American renewable energy company, Arevon Energy is continuing work on the Gibson Solar project at a site approximately 125 miles southwest of the state capital, Indianapolis. The solar project is scheduled to be commissioned by year-end 2023.
- 204 MW Wind Project – Spanish renewable energy company, EDP renewables is continuing work on the Indiana Crossroads II Wind Farm at a site approximately 75 miles northwest of Indianapolis. The project is scheduled to be commissioned by year-end 2023.
- 200 MW Solar Project – French utility, Engie is continuing work on the Emerald Green Solar Farm at a site approximately 50 miles north of Indianapolis. The solar project is scheduled to be commissioned by year-end 2023.
- 200 MW Solar Project – American utility, NextEra Energy is continuing work on the Brickyard Solar Farm at a site approximately 30 miles northwest of city of Indianapolis. The solar project is scheduled to be commissioned by year-end 2022.
- 200 MW Solar Project – EDP renewables is continuing work on the Indiana Crossroads Solar Park, which is at a site approximately 80 miles northwest of Indianapolis. The project is scheduled to be commissioned by year-end 2022.
- 200 MW Solar Project – Swiss multinational company, Capital Dynamics is continuing work on the Elliot Solar project at a site approximately 125 miles southwest of Indianapolis. The project is forecast to be commissioned by year-end 2023.
- 175 MW Solar Project – American utility, Duke Energy is continuing work on the Hoosier Jack Solar project at a site approximately 50 miles southwest of Indianapolis on land that was reclaimed from a coal strip mine. The project is forecast to be commissioned by year-end 2024.
- 150 MW Solar Project – Capital Dynamics is continuing work on the Ratts 1 Solar Project, which is at a site approximately 125 miles southwest of Indianapolis. The solar project is scheduled to be commissioned by year-end 2023.
- 50 MW Solar Project – In May 2021, American engineering firm Burns & McDonnell commissioned the Troy Solar project at a site approximately 150 miles southwest of Indianapolis.
Conclusions
Coal has been a major component of Indiana’s economy[6], since it was first commercially mined in 1830s. Indiana was producing over 30 million tons of coal by 1918.
Coal is still mined in Indiana, however; production does not meet the state’s demand of over 40 million tons per year. In 2020, coal was imported from West Virginia, Kentucky, Illinois, and Wyoming.
In 2010, 92.2% of Kentucky’s electricity was generated from coal-fueled power plants[7]. In April 2021, 53.5% of the state’s electricity was generated from coal-fueled power plants. Why?
- Pollution – Coal ash, the product of coal burned in a power plant contains arsenic, mercury, and lead; which are toxic. In 2019, coal ash was documented to have leaked into the ground water around 241 coal-fired plants in America[8].
- Economics – The cost to generate power from coal without subsidies is more than double the cost to generate power from renewables, like solar.
- Climate Change – Coal generates 30% to 40% more greenhouse gases than natural gas.
In 2018, the Northern Indiana Public Service Company (NIPSCO) announced it would close four coal-fired power plants in 2023 and one coal-fired power plant by 2028. NIPSCO is Indiana’s second largest electric utility.
Indiana legislators have shown little concern about global warming or climate change. The state’s Clean Energy Portfolio Goal even allows for utilities to meet the clean energy goal with “clean coal.”
However, economics of low-cost, reliable renewable energy is causing Indiana’s utilities to Give Coal The Cold Shoulder!
Jack Kerfoot
Website – “Our Energy Conundrum”
[1] Indiana Population 2021, World Population Review
[2] U.S. Department of Commerce, Bureau of Economic Analysis
[3] Biggest Industries in Indiana – World Atlas
[4] National Conference of State Legislators – State Renewable Portfolio Standards and Goals, January 4, 2021
[5] U.S. Energy Information Agency – Indiana State Profile and Energy Estimates, www.eia.gov
[6] Indiana Geological and Water Survey
[7] U.S. Energy Information Agency, Indiana Electric Power Consumption Estimates 1960 – 2018
[8] Reuters, “Coal Ash Contaminates Groundwater Near Most U.S. Coal Plants: Study” by Valerie Volcovici, March 3, 2019