US-based natural gas and electricity provider Consumers Energy is planning to close two coal-fired units at the Karn Generating Complex near Bay City in 2023.

The two units – Karn 1 and 2 – came online in 1959 and 1961 respectively, with a capacity to generate 515MW of electricity. Both are located in Hampton Township,

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The initiative is part of company’s Integrated Resource Plan (IRP) to eliminate the use of coal for power generation by 2040, and also reduce carbon emissions by 80%.

Consumers Energy noted that it will be filing the IRP with the Michigan Public Service Commission (MPSC).

“This IRP will help guide key decisions in the coming years to make us a cleaner, leaner company for the Great Lakes State.”

In its IRP, the company will be describing the details of how the company will meet the state’s energy needs with the increased use of energy efficiency, as well as other customer demand management programmes and significantly more renewable energy.

Under the plan, the company intends to increase renewable energy from 11% to 37% by 2030, and 43% by 2040.

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Consumers Energy president and CEO Patti Poppe said: “Our vision considers people, the planet and the prosperity of our state and the communities we serve. This IRP will help guide key decisions in the coming years to make us a cleaner, leaner company for the Great Lakes State.

“This is a pivotal moment in our company’s long, proud history – and this plan charts a course for us all to embrace the opportunities and meet the challenges of a new era.”

The IRP plan will focus on the demand response, energy efficiency, and grid modernisation tools.

In addition, the company will add 5GW of solar energy throughout the 2020s, along with wind and battery storage.