LANSING – The Public Service Commission on Friday released its report on the implementation of the state’s renewable energy standard and its cost effectiveness, showing the estimated renewable energy percentage is expected to reach 4.7 percent in 2012.
The state’s renewable energy standard is currently set at 10 percent by 2015, and the PSC has said numerous times that it expects the state will achieve that goal.
“More renewable energy came online in Michigan in 2012 than ever before,” John Quackenbush, chair of the PSC, said in a statement. “Michigan added 815 megawatts of new wind capacity in 2012, and now has a total of 978 megawatts from 14 operating wind farms.”
The study also noted that compared to building a new, conventional coal facility, renewable energy contracts are significantly lower, with the exception of two anaerobic bio-digester contracts in the state representing less than 4 megawatts of capacity.
And the weighted average prices of renewable energy contracts is $82.54 per megawatt-hour, which is less than what was forecasted in renewable energy plans, and is substantially lower than the cost of new coal-fired plants, the PSC said.
Wind energy has been the primary source of new renewable energy in the state, and Michigan has experienced “significant investment” in renewable energy since PA 295 of 2008 was passed.
“Electric providers – except Detroit Public Lighting – are on pace to meet interim targets as well as the 10-percent-by-2015 target,” the commission said in a statement. “DPL is expected to be unable to meet the standard because of surcharge caps put in place by Michigan law.”
The report also notes the economic impact of the law, citing specifically that for Consumers Energy, Mason County and the state of Michigan received an economic boost of nearly $10 million from the development of Consumers Energy’s first wind farm, the Lake Winds Energy Park.
Michigan vendors (most based in Mason County) received more than $4 million in direct payments for a variety of construction services and materials, such as concrete, aggregate, soil erosion materials, and culverts. The multiplier effect of those direct payments resulted in another $4.8 million in indirect economic impact, it said.
The report also said that according to DTE Energy, the investment in three wind parks, one constructed per year through 2013, will contribute $150 million in economic benefits to Michigan.
The Gratiot Wind Park, constructed in 2011, provided more than $30 million in direct payments to Michigan construction contractors and material/equipment suppliers. Also, the development and construction of the company’s wind parks in Huron and Sanilac Counties in 2012 contributed over $60 million in direct payments into Michigan’s economy for construction materials and equipment.
Michigan Energy Michigan Jobs, the group that unsuccessfully sought to amend the Constitution in the 2012 election to increase the renewable energy standard to 25 percent by 2025, praised the report “as evidence that Michigan should invest in more renewable energy and energy efficiency programs.”
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