KANSAS CITY, Mo. — Evergy, the major electricity provider across parts of Kansas and Missouri, announced Monday it will spend $2 billion to build two natural gas power plants in Kansas.
The two plants will be built in Sumner and Reno counties in the Wichita area and will contribute more than 1,400 megawatts of power to Evergy’s grid.
The investment comes as power-hungry users, like data and computing centers, look to satisfy their appetite for electricity — especially on-demand electricity.
Evergy said Monday it hopes to bring the Sumner County plant online in 2029, with the Reno County plant coming online in 2030. The plans have an expected 40-year service life.
“High-efficiency modern natural gas plants will meet the electricity needs of our region’s growing economy,” Evergy Chairman, President and CEO David Campbell said Monday in a news release announcing the two plants.
Campbell said the plants pair well with the company’s “planned investment in wind and solar sources” that support Evergy’s “commitment to affordable, reliable and sustainable energy.”
Kansas Gov. Laura Kelly was part of Monday’s announcement in Hutchinson, the largest city in Reno County.
“Kansas is experiencing record economic growth, and Evergy is prepared to deliver the reliable, affordable and sustainable energy needed,” Kelly said. “Evergy’s multi-billion-dollar investment brings direct value to the Hutchinson and Sumner County areas in jobs and tax dollars. It also ensures Kansas can continue to invite business growth that benefits the entire state.”
Evergy anticipates the investment will provide 500 construction jobs for each plant, generate $500 million in property tax revenue and create 20-40 higher-paying jobs to help run the facilities.
The investment includes economic incentives provided by state leaders, including a 10-year exemption on property taxes, and comes after Kansas legislators approved policies to support development.
LINK | Read more about the legislation
“We are pleased that a legislative policy we championed is helping ensure a strong energy future for the state of Kansas,” Kansas Speaker of the House Dan Hawkins said in a press release. “I look forward to seeing the benefits this brings in terms of jobs, economic growth and energy security for our state for years to come.”
This summer, regional transmission operator Southwest Power Pool — of which Evergy is a member utility — released a report titled “Our Generational Challenge” that explored increasing electricity demands with an evolving mix of electricity generation.
Southwest Power Pool’s President and CEO Barbara Sugg wrote that although a “tremendous” amount of renewable energy has been added in the region, it’s not always available.
“We need dispatchable generation for times when the wind isn’t blowing and the sun isn’t shining,” Sugg wrote in the report, adding that existing generations are aging or facing retirement. “Our risk of having inadequate supply to meet demand has greatly increased, and grid emergencies are likely to last longer, cause more damage and increase risks to human health and safety."
Evergy’s natural gas plant plans come at the same time as investors are looking to spend billions to improve electric transmission projects to move power from where it is generated to where it is needed.
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