Michigan’s Renewable Energy and Energy Efficiency Standards

On Feb 15, 2013, the Michigan Public Service Commission released its annual report on the implementation of P.A. 295, Michigan’s Renewable Energy Standard. The MPSC found that “Michigan has the potential to become a regional leader in development and manufacturing of renewable energy systems, building on the state’s engineering expertise, modernized machining, and investment in renewable energy in coming years.”

Highlights of the report include:

Michigan’s renewable energy standard is creating jobs, sparking investing and contributing to economic growth

  • $1.79 billion has been invested through 2012 to bring new renewable energy projects online. (p. 21) 
  • According to the report, Michigan-based manufacturing companies like Energetx and Ventower Industries could create more jobs in Michigan as they make more of the wind-turbine components used to meet the RES. (p.19-20)

Renewable energy investments are boosting local economies

  • Consumers Energy’s Lake Winds Energy Park provided an “economic boost of nearly $10 million” for Mason County and the state of Michigan. (p. 20) 
  • DTE’s three wind parks in Gratiot, Huron and Sanilac Counties, will contribute $150 million in economic benefits to Michigan. (p. 21)

Michigan’s major utilities are on track to meet the 10 percent renewable energy standard by 2015

  • Projections show that providers are on track to hit 10 percent by 2015. (p. 4) 
  • Electric providers are also on pace to hit interim targets as well as the 10 percent goal. (p. 9)

Renewable Energy Capacity by Technology Type

Based on contracts and solar programs approved by the Commission through 2012. (p. 8)

Renewable energy and energy efficiency help rein in rising energy costs.

  • The cost of all renewable energy technologies is less than new coal generation (with the exception of two anaerobic digester contracts representing less than 4 MW of capacity.) (p. 25) 
  • New conventional coal fired generation costs $133 per MWh, while new renewable energy generation costs $82.54 per MWh. (p. 25) When the savings as a result of the Energy Optimization Standard are factored in, the cost comes down to $45.98 per MWh. (p. 29) 
  • The MPSC found that for every $1 spent on energy optimization, customers see a return of over $3.55 in avoided energy costs. (p.31) 
  • The costs of wind contracts have dropped 10 percent in the last year, and 50 percent since 2009. (p. 27)

Read the full 2013 report on www.michigan.gov

State by State RES