The chart includes all renewable energy contracts approved by the MPSC from 2009 to 2011, and 12 MW of solar that will come online through 2015.
A Michigan Public Service Commission report shows Michigan’s renewable energy standard is directly sparking Michigan’s economy, generating $100 million in investments, spurring manufacturing and business growth, and creating jobs, said the Energy Innovation Business Council. The full report shows that renewable energy now costs less than coal.
“Michigan manufacturers and businesses see firsthand how a renewable energy standard drives economic growth, innovation, investments and job creation, and this report validates the need for a strong renewable energy standard,” said Astraeus Wind CEO Jeff Metts. “Other states are aggressively pursuing strategies to grow their renewable energy and manufacturing sectors. We in Michigan must roll up our sleeves and aggressively position ourselves to compete for new opportunities and jobs, or get left behind.”
The MPSC report on the RES enacted in 2008 included these highlights:
- Michigan’s current RES generated more than $100 million in investments on advanced energy projects between 2008 to 2011, many of them directly impacting Michigan businesses and workers
- All renewable energy sources cost significantly less than coal per MWh, with renewables costing an average of $91.19/MWh, lower than the $133/MWh for a new coal plant.
- Michigan is on track to meet the current renewable energy standard of 10% by 2015
The MPSC report went on to say: “Michigan has 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. It appears that the Michigan incentive REC (renewable energy credits) provision in the standard is meeting its intended purpose to encourage developers to maximize the amount of Michigan equipment and labor.”
Additionally, Mlive.com reported Feb. 16 that Consumers Energy significantly lowered its renewable energy charge from $2.50 to only 65 cents a month because renewable energy costs continue to decrease.
While the MPSC report says Michigan is on track to meet the RES by 2015, only around 3.6% of Michigan’s electricity currently comes from renewables. In comparison, 21% of Iowa’s electricity already comes from renewables. In addition, neighboring Midwest states such as Ohio, Illinois and Minnesota have renewable energy standards higher than Michigan’s.
“Michigan’s renewable energy sector is providing solid financial, social and ecological values for Michigan because of our renewable energy standard. Michigan utilities investing in advanced energy such as wind and solar deserve full credit for embracing the future and creating new economic opportunities,” said Rich Vander Veen, president of Mackinaw Power in Lowell. “The MPSC report shows that a renewable energy standard establishes energy security and makes good economic sense for Michigan businesses and ratepayers. New wind farms are providing solid income to local communities and landowners, and this helps protect family farms for future generations.”
Earlier this month, the EIBC released a study showing Michigan’s advanced energy manufacturing sector – solar, wind, advanced energy storage and batteries, and biomass – generates $5 billion a year in economic activity and supports 20,500 jobs a year. The study is one of the first of its kind in the nation because it used real-world manufacturing data.
Highlights of the MPSC report
- Michigan’s current RES generated more than $100 million in investments on advanced energy projects between 2008-2011. (p. 18)
- All renewable energy sources cost significantly less than coal per megawatt/hour, with renewables costing an average of $91.19/MWh, lower than the $133/MWh for a new coal plant. (p. 22, p. 25-26)
- The actual cost of renewable energy contracts submitted to the MPSC to date shows a downward pricing trend. This was the case as of the filing of this report in February 2011 and continues to be the case as the two most recent contracts approved by the MPSC for new wind capacity have levelized costs of $61 to $64/MWh. (p.24)
- Based on contract pricing trends, MPSC anticipates the cost of renewable energy will continue to decline. (p. 26)
- Michigan is on track to meet the current renewable energy standard of 10% by 2015. (p.28)
- By the next MPSC biennial review in 2013, electric providers will have made significant progress toward securing all the renewable energy necessary for compliance with the Act. (p. 9)
- Progress toward the first compliance year in 2012 and the 10% renewable energy standard in 2015 is going smoothly. (p. 28)
- A benefit of the additional investment, manufacturing, installation, administration and development of clean and renewable energy has been job creation. (p. 18)
“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. It appears that the Michigan incentive REC (renewable energy credits) provision in the standard is meeting its intended purpose to encourage developers to maximize the amount of Michigan equipment and labor.” MPSC report, 2/15/2012, p. 20.
Energy Innovation Business Council
Filed Under: News, Policy
