Alliant Energy plans new natural gas generating station in Cedar Rapids as coal era ends

CEDAR RAPIDS, Iowa (KCRG) — Alliant Energy is planning a new natural gas-powered generating station in Cedar Rapids, a move the company says will help meet customer demand while supporting a broader transition away from coal.

The Cedar River Generating Station will be built on the same property as the Prairie Creek Generating Station on the city’s southwest side. The new facility will include five reciprocating internal combustion engines, or RICE units, with a total generating capacity of 94 megawatts.

According to Alliant, RICE units are large engines that burn natural gas to produce electricity. They are designed to start quickly — in about five minutes — and ramp up power fast when demand increases. Alliant says that flexibility helps balance the grid as more wind and solar energy are added to its system. Construction is expected to begin in early 2026, with the station operational in 2027.

The development comes after Prairie Creek Generating Station stopped burning coal at the end of 2025.

Energy and environmental advocates say the shift away from coal is part of a long-term industry trend, increasingly driven by economics.

“A lot of the move away from coal more recently has been driven by the economics of renewable energy just becoming better and better compared to the economics of coal,” said Kerri Johannsen with the Iowa Environmental Council, a nonprofit group that works to protect Iowa’s air, water, land and public health by pushing for environmentally friendly policies and holding decision-makers accountable.

Alliant Energy said in a statement:

“The development of Cedar River Generating Station underscores Alliant Energy’s commitment to a balanced energy approach. This project will help meet customer demand while providing cost-effective energy and supporting our investments in renewable generation to ensure optimal reliability and security.”

Copyright 2026 KCRG. All rights reserved.