Natural gas, battery storage could get fast tracked to serve AI data centers in Indiana

The regional grid that serves Indiana needs more reliable energy, fast — so its grid operator is letting some power sources speed through its connection process. MISO — or the Midcontinent Independent System Operator — said the grid needs power for data centers, manufacturing plants and electric vehicles.

So much solar and wind power was proposed in the past few years, it's created a huge backlog of projects waiting to be approved by MISO. Some energy projects have been waiting years to get connected.

The federal government recently approved MISO's plan to fast track 68 energy projects. To be eligible, state utility regulators have to agree that those projects are serving an urgent need for power and they have to be up and running in six years or less.

READ MORE: AI data centers threaten to derail climate progress in Indiana
 

The renewable energy trade group, the American Clean Power Association, hopes MISO will prioritize battery storage. ACP Vice President of Energy Storage Noah Roberts said these batteries provide cheap power that can work with any kind of energy — including coal and gas.

"We are using excess power that otherwise would be wasted and using that, you know, essentially free power to provide power when it's needed most," he said. 

Indiana currently has more than 28 gigawatts of battery storage in the queue to get connected to the grid — roughly the power of 14 Hoover Dams.

Timothy Fox is a managing director with ClearView Energy Partners — a research firm that covers the energy industry.

"If a solar project that's paired with batteries can demonstrate that they can both serve resource adequacy and serve the state's decarbonization targets, that may give that project a layup. We still think that gas and batteries are likely to represent the bulk of the beneficiaries," he said.

READ MORE: Solar, battery storage surge in Indiana in 2024, first quarter of 2025
 

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The Indiana Energy Association — which represents investor-owned electric utilities in the state — wrote a letter in support of MISO's plan.

"We recognize that to meet demands for new growth going forward, we will need more dispatchable generation as well on an expedited basis. The ERAS framework acknowledges this reality and strengthens our ability to plan more effectively, invest in necessary infrastructure, and secure the capacity required to maintain system reliability," it said.

Indiana lawmakers passed a resolution urging federal agencies to "expedite the approval of electric transmission and generation projects" earlier this year.

The other regional grid operator that serves Indiana, PJM, made similar plans to fast track power sources. Though its requirements were different than MISO's, most of the bids went to natural gas and battery storage.

MISO refused to provide anyone for an interview.

Rebecca is our energy and environment reporter. Contact her at rthiele@iu.edu or on Signal at IPBenvironment.01. Follow her on Twitter at @beckythiele.