The Illinois Commerce Commission on March 8 approved a certificate of public convenience and necessity for Invenergy LLC's planned 800-mile Grain Belt Express transmission project, which would ship 5,000 MW of renewable power from Kansas to the Illinois-Indiana border.
"The Commission finds that the project is necessary to provide adequate, reliable, and efficient service, will promote the development and effectively competitive electricity market," the final order said. (Docket 22-0499)
The high-voltage, direct-current line expected to cost $7 billion already won needed approvals from regulators in Indiana, Kansas and Missouri to knit together the Southwest Power Pool, Midcontinent ISO and PJM Interconnection LLC power markets, plus the grid operated by Missouri-based generation and transmission cooperative Associated Electric Cooperative Inc. Construction on the project's first phase is expected to start by the end of 2024.
Grain Belt Express will bring $7.5 billion of energy and capacity cost savings to customers in Missouri and Illinois and $1 billion to customers in Kansas, according to Invenergy, which in 2022 expanded the project's total capacity by 25%.
The Illinois Commerce Commission noted that the project "will promote an effectively competitive electricity market ... by, at a minimum, injecting low-cost renewable energy into the MISO and PJM markets and exerting downward pressure on electricity and [renewable energy credit] prices."
"Although the Landowner Alliance challenges how much the project will impact the Illinois markets, it is undisputed that renewable energy from generators in southwest Kansas is competitive with fossil fuels," the final order continued. The Illinois Landowners Alliance is an advocacy group that has attempted to block Grain Belt and other high-voltage transmission lines that have been proposed to cross Illinois.
Illinois in 2021 enacted sweeping energy legislation designed to transition the state to 50% renewable energy by 2040 and 100% clean energy by 2050 by reducing emissions and supporting electrification.
Grain Belt Express still faces particular opposition from Missouri landowners, who see the line as creating more costs than benefits in the state, even after the state supreme court upheld the Missouri Public Service Commission's 2019 approval of the project.
The transmission line may also receive financial help from the U.S. Department of Energy, which is considering granting a loan guarantee to Grain Belt Express.
The DOE allows for loan guarantees covering up to 80% of project costs.
S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.