MidAmerican Energy, Iowa’s largest energy provider, has proposed a $600 million natural gas turbine plant in southern Iowa, alongside significant investments in solar energy across the state. The initiative aims to address what the company describes as a “looming energy supply shortfall.”
The Des Moines-based utility, owned by Warren Buffett’s Berkshire Hathaway, filed a plan with state regulators on Monday, outlining the construction of 800 megawatts of solar energy generation. In rural Adair County, this solar expansion would be complemented by a 465-megawatt natural gas-fired power plant, designed to operate during peak energy demand periods.
Solar Expansion Across Iowa
MidAmerican’s proposed solar projects would require approximately 4,800 acres and are projected to generate enough electricity to power 144,000 homes annually. While the company has not disclosed the total investment in solar energy due to ongoing land negotiations, it anticipates development through 2027 and 2028.
Economic benefits from the solar project include an estimated $25 million in property tax revenue over its lifespan and $270 million in lease payments to landowners.
“Solar will diversify MidAmerican’s generation fleet and is a no-regrets energy solution that will benefit MidAmerican customers regardless of what the future holds,” said Josh Mandelbaum, a senior attorney with the Environmental Law & Policy Center.
Natural Gas Peaker Plant to Support Grid Stability
MidAmerican plans to construct two natural gas-fired combustion turbines at the proposed Orient Energy Center. The facility, designed as a “peaker” plant, would operate primarily during high-demand periods and generate $7 million in property taxes.
The plant will be located on 30 acres of a 160-acre site owned by MidAmerican, about two miles south of Orient, a small town approximately 60 miles southwest of Des Moines. The company emphasized that the site already has necessary infrastructure, minimizing disruption to landowners.
Construction of the gas plant is expected to create 400 temporary jobs over two years, with five permanent positions offering annual salaries between $100,000 and $125,000. MidAmerican stated that the facility will operate less than 10% of the year but will play a critical role in ensuring grid reliability during peak demand.
However, some critics question the necessity of the natural gas plant. “We have serious concerns about investing hundreds of millions of dollars in gas plants that will almost never run, to meet load projections that may or may not materialize,” Mandelbaum said. He also suggested that alternative solutions such as energy efficiency and demand response should be explored more thoroughly.
Regulatory Timeline and Energy Demand Growth
MidAmerican anticipates regulatory approval from the Iowa Utilities Commission by spring 2026. If approved, solar construction could begin in 2025, with initial energy generation starting in 2027. The natural gas plant is expected to be operational by spring 2028.
The company cited growing energy demand as the key driver behind these new projects. While MidAmerican has not disclosed the exact amount of additional power needed, it previously reported a nearly 40% increase in energy usage by its Iowa and South Dakota customers over the past 12 years.
“Through this mix of near-term solar and natural gas generating projects, MidAmerican seeks to address the looming energy supply shortfall and serve customers with reliable and affordable energy well into the future,” the company stated in a news release.
Rising Energy Demand from AI, Data Centers, and EVs
Nationwide, utilities are struggling to keep up with growing energy demands driven by artificial intelligence, data centers, electric vehicles, and the reshoring of manufacturing operations. Iowa has become a hub for major data centers operated by tech giants such as Facebook, Google, and Microsoft.
MidAmerican’s proposal follows Florida-based NextEra Energy’s recent announcement that it is exploring the possibility of reopening Iowa’s only nuclear power plant, the Duane Arnold Energy Center, by 2028.
State lawmakers from southern Iowa have expressed support for MidAmerican’s proposal.
“It’s crucial for our economy to have energy that’s there when we need it most—regardless of whether it’s hot, cold, windy, or cloudy,” said Iowa Senate President Amy Sinclair, a Republican from Wayne County. “Developing a diverse mix of energy sources that keeps rates affordable and serves Iowans into the future just makes good sense.”
MidAmerican emphasized that the natural gas plant would serve customers for the next 40 years, ensuring a stable and reliable energy supply alongside the state’s growing renewable energy capacity.