State Economy
The population of the Hoosier State, Indiana is approximately 6.85 million people[1]. Indiana is the 17th most populated state in the United States.
In 2022, Indiana’s economy was ranked 19th in the United States in gross domestic product (GDP)[2]. The state’s economy is dependent on the automobile, steel, pharmaceutical, mining, logistics, and agriculture industries[3].
Environmental 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].
Power Generation Capabilities
In February 2023, utilities[5] used coal (46.1%), natural gas (38.3%), and renewable energy (15.6%) to generate electricity in Indiana. Wind and solar are the dominant types of renewable energy used to generate electricity in Indiana.
In February 2023, the average cost of residential electricity in Indiana was 16.11¢ per kWh, compared to the national average of 15.96¢ per kWh.
Recent renewable energy developments in Indiana include:
- 280 MW Solar Project – Arizona 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 project is scheduled to be commissioned by year-end 2023.
- 204 MW Wind Project – Spanish power company, EDP is continuing work on the Indiana Crossroads II Wind project 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 project at a site approximately 50 miles north of Indianapolis. The project is scheduled to be commissioned by year-end 2023.
- 200 MW Solar Project – In April 2023, Florida power company, NextEra Energy commissioned the Brickyard Boone Solar project at a site approximately 30 miles northwest of city of Indianapolis.
- 200 MW Solar Project – In April 2023, EDP renewables commissioned the Indiana Crossroads Solar project at a site approximately 80 miles northwest of Indianapolis.
- 200 MW Solar Project – Swiss 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.
- 188 MW Solar Project – Indiana company, Inovateus Solar is continuing work on the Honeysuckle Solar at a site approximately 125 miles north of Indianapolis. The project is forecast to be commissioned in 2024.
- 185 MW Solar Project – Pennsylvania renewable energy company, Oriden is continuing work on the Vermillion Solar project at a site approximately 75 miles west 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.
- 150 MW Solar Project – Florida solar company, Origis Energy is continuing work on a solar project at a site approximately 80 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
Commercial coal mining began in Indiana[6] in the 1830s. The state was producing over 30 million tons of coal per year by 1918.
Coal is still a major component of Indiana’s economy. In 2021, Indiana produced 19.47 million tons of bituminous coal[7] from 4 subsurface and 9 surface mines.
Coal is still mined in Indiana, however; production does not meet the state’s demand of over 40 million tons per year. In 2023, coal is imported from Kentucky, West Virginia, Illinois, and Wyoming.
In 2010, 92.2 % of Kentucky’s electricity was generated from coal-fueled power plants[8]. In February 2023, 46.1% of the state’s electricity was generated from coal-fueled power plants. Why the decline in the use of coal?
- 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[9].
- 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 40% to 45% more greenhouse gases than natural gas.
Northern Indiana Public Service Company (NIPSCO) is preparing to close four coal-fired power plants by year-end 2023 and one coal-fired power plant between 2026 and 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, compelling economics of low-cost, reliable renewable energy is causing Indiana’s utilities to Give Coal The Cold Shoulder!
Jack Kerfoot
Website – “Our Energy Conundrum”
www.jackkerfoot.com
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio, podcast, and television stations from New York City to Los Angeles on numerous energy issues.
[1] Indiana Population 2023, 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, August 14, 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. EIA, Annual Coal Report 2021, Published October 2022
[8] U.S. Energy Information Agency, Indiana Electric Power Consumption Estimates 1960 – 2018
[9] Reuters, “Coal Ash Contaminates Groundwater Near Most U.S. Coal Plants: Study” by Valerie Volcovici, March 3, 2019