Blog
 |  Dec 10, 2024

Wiring the Midwest for Economic Success

Kelley WelfKelley Welf, Communications Director
Wiring the Midwest for Economic Success
Kelley WelfKelley Welf, Communications Director

As we prepare for "old man winter" to arrive and the often unpredictable weather that comes along with it, it's good to know that our region—the upper Midwest—will soon enjoy more reliable, affordable power, thanks to the biggest portfolio of regional long-range transmission projects ever proposed in the United States. Dubbed "Tranche 2.1," this set of lines will position the Midcontinent Independent System Operator (MISO), our region's electric grid operator, as a national leader in this type of transmission planning and implementation.

Tranche 2.1 will build 24 backbone high-voltage, long-range transmission lines to enable more efficient power transfer across states, while providing important benefits for residents in North Dakota, South Dakota, Minnesota, Wisconsin, Michigan, Indiana, Illinois, Iowa, and Missouri. These lines will enable nearly 116 gigawatts of new generation, with about 100 gigawatts coming from new solar, wind, battery, and hybrid solar/storage projects. This is enough clean generation to power about 24 million homes.
Tranche 2.1 will be a huge economic engine for the upper Midwest, supporting construction jobs for building the lines themselves, as well as jobs for building and operating the new energy sources the transmission will enable.

  • Tranche 2.1 will support about 876,000 jobs overall.
  • About 750,000 of those jobs will be added to build the solar, wind, and battery storage projects enabled by Tranche 2.1 lines.
  • Up to 130,000 jobs will be added to build the lines, including direct construction jobs, and indirect jobs created at local businesses in hospitality and retail.
  • There are also significant benefits for local communities, as these projects spur increased spending in restaurants, hotels, and retail shops, contribute to the local tax base, and provide land lease payments to farmers and other landowners. MISO estimates that Tranche 2.1 will spark up to $24 million in total economic output across the Upper Midwest.

All told, when all the benefits these lines will create are fully accounted for, at least $2 will be saved for every dollar invested. These savings come from avoiding 1) the use of the overly expensive resources we see today, 2) the high cost of building new power plants, 3) losses associated with power outages, 4) the pollution that comes from fossil generators, like gas and coal, and 4) the costs of replacing aging local transmission lines. That's because the Tranche 2.1 transmission lines will enable cleaner, lower-cost energy sources to come online and give the grid operator the flexibility to reroute power around congested lines or to tap supply from places unaffected by extreme weather. These changes will save upper Midwest households tens of billions of dollars over the next several decades.

This is an exciting time for the Midwest as we chart new territory to meet our energy and reliability needs and spur strong economic growth. Keeping costs down; ensuring our electricity supply is in line with demand and shows up when we need it; and creating well-compensated jobs and local economic benefits are all good news for Midwesterners.

The reliability and resiliency of our electric grid are paramount to America's economy. With an aging infrastructure and growing demand from consumers, data centers, and other large loads, the investment into our domestic infrastructure from the Tranche 2.1 lines is coming not a moment too soon.

by Kelley WelfKelley Welf
Communications Director

Kelley Welf is the communications director for Clean Grid Alliance. She writes about transmission, MISO, and the benefits of renewable energy across the Midwest. Follow CGA on Twitter @CGA_Midwest, Facebook @cleangridalliance and LinkedIn @clean-grid-alliance.