Helena, Montana – Montana, known for its diverse energy resources, is witnessing a significant shift in its energy production landscape. The state has long been known as an energy exporter, but the rapid growth of wind energy is challenging its traditional reliance on coal and hydroelectric power. This shift is highlighted by the construction of new wind projects, which are poised to surpass coal in generation capacity.
For decades, coal, particularly from the Colstrip power plant Units 3 and 4, has been Montana’s second-largest source of energy generation capacity after hydroelectric power. However, recent years have seen a decline in coal-fired facilities and a surge in investments in wind energy. Montana’s vast wind potential, ranked second nationally, has fueled this growth.
The transition is evident in the data analysis by the U.S. Department of Energy’s Energy Information Administration (EIA). The “nameplate” wind generation capacity, which measures the maximum power output under ideal conditions, is set to surpass coal capacity with the completion of the Clearwater Wind East and Clearwater Wind II projects near Billings. These projects are expected to add 311 megawatts to Montana’s wind capacity, bringing the total to 1,790 megawatts.
Glenn McGrath, a senior analyst with the EIA, attributes the rise of wind energy and the decline of coal to economic factors. Coal plants are increasingly unable to compete with cheaper energy sources like natural gas and renewables such as solar and wind. The transition, although problematic for coal plants, reflects a broader market trend towards more cost-effective energy sources.
The growth in Montana’s wind energy is not just for local consumption. Out-of-state utilities, such as Portland General Electric and Puget Sound Energy, are significant consumers of this power. These utilities, planning to exit the Colstrip coal plant, still hold stakes in the transmission lines originating from it. Climate-oriented policies in Washington and Oregon, encouraging a move away from coal, have further propelled Montana’s shift towards wind energy.
Despite the rise in wind energy, it’s important to note the differences in output and reliability between coal and wind. Moira Davin, a spokesperson for the Montana Department of Environmental Quality, points out that coal plants have a higher “capacity factor,” meaning they can consistently reach their maximum generating capacity. In 2022, coal-fired generators produced around 43% of Montana’s in-state electricity, while wind accounted for approximately 15%.
Montana’s wind energy development shows no signs of slowing down. Numerous projects are in the pipeline, including the multi-phase Beaver Creek Wind project in Stillwater County and the Jawbone wind farm near Harlowton. However, challenges remain, notably the issue of transmission constraints. When wind generation exceeds demand or transmission capacity, wind farms may have to curtail production, affecting profitability.
Max Greene from Renewable Northwest highlights the region’s transmission limitations, which could impact future power projects. Despite these challenges, the financial incentives for carbon-free projects under the Inflation Reduction Act and the low cost of wind power relative to other sources are expected to maintain interest in Montana’s wind projects.
The energy sector in Montana is at a crossroads, with wind power rapidly gaining ground over traditional coal. This transition, driven by economic factors and out-of-state demand, is reshaping Montana’s energy landscape. As new wind projects come online, the state continues to adapt, balancing the opportunities and challenges of this renewable energy boom.
