by Bruce Goodman

After waiting more than two years, Consumers Power has received MDEQ approval of a Michigan air use permit for it proposed new coal fired facility in the Bay City area.  Whether it turns out to be the last project standing is still to be seen.  The LS Power coal project proposed for Midland suspended its efforts to get permitted earlier this year.  The Wolverine Power coal project in Rogers City, once thought to be the leading contender to get the first permit, is waiting.  And the oft-delayed coal project for Holland Board of Public Works still has not surfaced. 

What impact this decision may have on alternative and renewable energy projects in Michigan is unclear.  What is clear is that now Consumers Energy will not have all its political energies focused on the permitting problems it was having with the MDEQ.  However, the “problem” venue will only be shifting, as there is little doubt that ultimately the decision to permit the project will be challenged in the courts.  Meanwhile, it will be interesting to see what steps Consumers Power takes to begin mothballing coal capacity, as it is required to do under the stipulation of  obtaining the new air permit.  Stay tuned.

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 by Bruce Goodman

Developers Havgul Clean Energy and Scandia Wind Offshore are considering a 100 square mile area of Lake Michigan near Ludington for a $3 billion, 1000 MW offshore wind farm. After meeting with Mason and Oceana county officials, the team held a well-attended public meeting on December 15 to explain the details of the proposed project which would be located approximately 2-4 miles offshore between Pentwater and Ludington. Relying on wind statistics collected from lighthouses, they selected the location for its combination of grid access (Ludington Pumped Storage Plant), wind resource, proximity to major load centers, and favorable water depths.

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by Bruce Goodman

With climate change on everyone’s radar screen this month the discussion is focused on “carbon footprint”. But last month’s GOA study on the use of water in biofuel production reminds us that there is a water-energy nexus. By some counts half of all water consumed in the U.S. is used to produce energy. Coal fired generation consumes a gallon of water for every kilowatt-hour of electricity produced (and emits two pounds of carbon dioxide).

When GHG reporting kicks in next year should there also be reporting on “water footprint”? Some alternative energy technologies are already touting zero water usage. It is a current issue, not one for 2050—Georgia (where electric utilities use 68 percent of all surface water) came close to losing electric supply when recent drought conditions reduced cooling water availability. Are “water offsets” in our future? Of course there is already a law that may cover this — the Law of Conservation of Matter.

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by Bruce Goodman

Economic historians tell us that slow economic times have yielded big successes for those willing to risk start up in hard times. Each of the following proves that point: Burger King, MTV, CNN, FedEx, Intel and Microsoft. Conventional wisdom is that startups–small, innovative businesses–are what ultimately grow the economy. They create a “new economy” with new products creating new markets and/or addressing new problems. Their efforts are boosted by technology—often overlooked by others or developed by themselves. We need to make certain that the current financial, economic and societal opportunities “reach out” to energy-related garage start-ups and micro-to-small ventures. These new enterprises may well prove to be the ultimate drivers for energy solutions and success. Sometimes large ships are just too hard to turn; we need to find and foster the jet skis of innovation.

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by Bruce Goodman

The new Michigan Renewable Energy Certification System (MIRECS) for documenting, verifying, and tracking electric generation produced by renewable resources within the state of Michigan will be operated by APX, Inc.

Under the year-old Clean, Renewable, and Efficient Energy Act, Michigan has a somewhat complicated systems of rewable energy credits.  The MIREC program will add clarity to this program.

The APX contract provides that all operating costs for MIRECS be recovered through fees charged to users. Fees and other procedures can be found at www.mirecs.org. MIRECS will track Michigan Renewable Energy Credits, Michigan Advanced Cleaner Energy Credits, Michigan Incentive Renewable Energy Credits, and Michigan Energy Optimization Credits, each as defined under the Clean, Renewable and Efficient Energy Act. [Note that until March 31, 2010 credits for generation back to January 2009 can be issued with appropriate documentation.]

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by Bruce Goodman

Grand Valley State University is preparing to utilize a $1.4 million Department of Energy grant to measure wind speed and other parameters at a yet to be determined offshore location in Lake Michigan. The data collection platform will supply year-round wind data (at elevation) that previously has been unavailable. [NOAA buoys measuring winds at lake level are removed from November through March each year.] The target date for installation is the fall of 2010. Studies from AWEA show that the wind potential of Lake Michigan is in the range of 4 to 6 wind class (with 7 being the highest).

The next step is the acquisition of additional funding.  An MPSC grant is out for bid that could increase the available seed money by $2 million.  The rest of the funds for the estimated $6.8 million project will need to come from private sources.  It is expected that one or more wind developers will contribute to “scope out” a likely location for an offshore wind farm.

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