Indiana Clean Energy Guide

Indiana is undergoing a significant energy transition, moving from one of the nation's most coal-dependent states to a growing clean energy player. Ranked 10th nationally in capacity with $19 billion invested.

Coal Transition

Indiana has historically relied heavily on coal for electricity generation. However, economics have shifted dramatically—utilities are retiring coal plants and replacing them with wind, solar, natural gas, and battery storage.

Major Utility Plans

• Duke Energy Indiana: Delaying its coal exit—Gibson units now run until 2038—and replacing retiring coal primarily with new natural gas, with most wind and solar deferred to the mid-to-late 2030s
• AES Indiana: Major coal-to-clean transition underway
• NIPSCO: Replacing coal with wind, solar, and storage
• Vectren (CenterPoint): Solar investments

Wind Energy Growth

Northern Indiana has excellent wind resources, and the state has built significant wind capacity. Wind farms across the northern tier provide clean energy and rural economic benefits through land lease payments and local taxes.

Key Developers Active in Indiana

• E.ON (RWE): Major wind developer
• Invenergy: Wind and solar development
• EDP Renewables: Wind projects
• NextEra Energy Resources: Wind and solar

Challenges & Outlook

Indiana faces challenges including local opposition to some solar projects, lack of a state clean energy mandate, and grid constraints in some areas.

However, utility economics strongly favor renewables over continued coal operation. Indiana's clean energy capacity is expected to keep growing, though coal retirements are currently being delayed rather than accelerating—federal emergency orders issued in December 2025 have kept NIPSCO's Schahfer and CenterPoint's Culley coal units running past their planned retirements through June 2026, and Duke Energy has pushed its Gibson coal exit to 2038.

Frequently Asked Questions