Current policy goals

Modernize and upgrade grid infrastructure

Across the country, over 91% of high-voltage transmission lines are at capacity. In the Midwest, the Midcontinent Independent System Operator (MISO) has planned for long-range transmission expansion across its region through 4 tranches of projects. In 2022, MISO approved $10.3 billion in upgrades through Tranche 1 of transmission upgrades in the MISO Midwest subregion, and in 2024 MISO approved $21.9 billion for Tranche 2.1, which builds off the foundation of Tranche 1.

In addition, upgrading and expanding transmission—paired with smarter use of the grid we already have—unlocks new opportunities for batteries, virtual power plants (VPPs), and programs like Minnesota’s Distributed Capacity Procurement (DCP). By strategically deploying energy storage and aggregating distributed energy resources, these tools can reduce congestion on constrained transmission paths, shift energy to when and where it is needed most, and maximize the value of existing wires and substations while new transmission is planned and built.

Batteries and VPPs allow the system to move and manage power more efficiently across a larger footprint, helping absorb excess low-cost generation—such as curtailed wind—and deliver it to load when demand is highest. This flexibility lowers system costs by reducing reliance on expensive peaking resources and by deferring or right-sizing some infrastructure upgrades, ultimately supporting more affordable energy for customers. Programs like DCP can provide a clear, market-based pathway for these distributed resources to deliver capacity and grid services, strengthening reliability, supporting local clean energy businesses, and ensuring transmission investments are complemented by cost-effective, customer-sited solutions.

Expanding energy efficiency and implementing decarbonization

Currently, Minnesota ranks tenth overall for energy efficiency programs and the highest ranking in the Midwest according to the American Council for an Energy Efficient Economy (ACEEE). Minnesota is seeing increased savings from its energy efficiency policies like the Energy Conservation and Optimization (ECO) Act. In 2020 and 2021, the ECO Act has saved Minnesotan businesses and residents more than $287 million in energy costs. In recent legislatures, CEEM has supported modifications of the ECO Act and legislation to update residential and commercial building codes to increase energy efficiency requirements.

While Minnesota is a leader in energy efficiency, there is more work needed to decarbonize the building sector. Detailed in the Minnesota Climate Action Framework, greenhouse gas (GHG) emissions from commercial buildings have risen 15% from commercial buildings and 32% from residential buildings since 2005 levels. The state’s current goal to reduce GHG emissions from existing buildings by 50%, compared to 2005 levels, will require significant investments and efforts to implement energy-efficient building technology. CEEM currently facilitates an Energy Savings Performance Contracting (ESPC) stakeholder working group. The CEEM ESPC working group works with state agencies and CEEM Members to develop solutions to streamline ESPC programming and educates entities on energy conservation measures. CEEM is also involved in a Building Performance Standard working group and continues to be involved in efforts to support building decarbonization and promote energy efficiency.

In addition to buildings, CEEM is accelerating industrial decarbonization by expanding low- to medium-heat solutions and advancing a green iron project. These efforts leverage improved electric rates, new incentives, stakeholder collaboration, and early adopter commitments to reduce emissions in Minnesota’s industrial sector while supporting energy efficiency and economic growth.