Buffett utility tables 'whole new level' $4bn US wind power mega-plan with nuclear in mix

MidAmerican Energy – the utility owned by billionaire Warren Buffett – unveiled one of the largest ever US onshore wind plans with a $4bn proposal that includes 2GW of turbines in Iowa and a pledge to explore other “clean generation technologies” such as nuclear and carbon capture.

MidAmerican, part of the investment tycoon's Berkshire Hathaway empire, claimed that when added to existing fleet, its Wind PRIME project would give it the ability to meet with green electricity the equivalent of the entire annual consumption of its Iowa customer base in what is already one of America's leading wind power states.

The company said in a statement: “Although wind is an essential component [of Wind PRIME], the project also includes solar energy generation and the examination of new clean energy technologies that will be an important part of the net-zero transition.”

Along with 50MW of PV included in the plan, MidAmerican said in a filing with the Iowa Utilities Board (IUB) that it would look at “feasibility studies focused on other clean generation technologies, including carbon capture, energy storage and small modular nuclear reactors”.

Purely on the wind and solar proposed, Wind PRIME would be among the largest US onshore renewables initiatives proposed to date. The company is studying how many wind farms to build with nine as an early estimate.

MidAmerican asked the IUB to approve its application by 31 October this year, which the utility said would give it “sufficient time to secure the necessary resources to develop, construct and place project sites into service on a timeline that assures obtaining critical federal tax credits”.

Hoffman said MidAmerica will be able to qualify the planned wind capacity for the federal production tax credit (PTC) at 60% value. This was done through start of construction by incurring 5% of capital expenditure up front through acquisition of equipment before the PTC expired at the end of 2021. MidAmerican will now need to show "continuous efforts" to complete the project.

The company said it hopes to complete construction in late 2024 if it secures approval for the project. On 1 January, it had more than 7.33GW of wind generation capacity in service, the most of any single US investor owned utility, and contracts for another 128MW.

“Iowa is a renewable energy leader, thanks in large part to MidAmerican Energy’s proven track record of clean energy commitments and investments that are a true competitive advantage for our state,” said Iowa governor Kim Reynolds. “MidAmerican’s Wind PRIME is a commitment and investment on a whole new level, cementing Iowa’s clean energy leadership for many years to come.”

Multi-faceted energy transition

The commitment to look at other technology options as part of Wind PRIME reflects the multi-faceted nature of the energy transition underway in the US.

While consideration of energy storage is unsurprising given the scale of the wind capacity envisaged, wrapping in carbon capture and nuclear as part of what is explicitly described as a “renewable energy project” is likely to raise some eyebrows.

Small modular nuclear reactor (SMR) technology, also known as mini-nuclear, is being looked at in markets around the world as a potential way to offset the variability of wind and solar generation.