by Bruce Goodman

Earlier this month, I had total replacement surgery on my right hip. Nagging pains that started ten years ago gradually developed into stronger, sharper pains, causing me to walk off-kilter. I knew it was time for corrective action and thanks to my skilled surgeon, I now look forward to a future free of pain. Michigan’s alternative energy development efforts are kind of like that: we are off kilter and surgery is needed. Ever since 1978 and PURPA, standby tariffs in Michigan have taken the incentive out of self-generation projects that make economic sense. This “nagging pain” must be corrected by the MPSC before self-generation developers give up on Michigan. Adding to the pain is the refusal of the major utilities to use their purchasing power to attract an established wind turbine OEM to Michigan. Our legislature gave the utilities a gift of half the RPS action; the quid pro quo should have been to use that gift to bring an OEM to Michigan. Whether it is the MPSC, the Governor, or the legislature, someone needs to find the political will to make this happen, before the utility wind turbine orders are placed. Where is our political team of surgeons?

by Bruce Goodman

With a $1.4 million DOE grant in hand and a request for a $2.0 million MPSC grant pending, Grand Valley State University is preparing to issue a Request for Proposal for a Lake Michigan offshore meteorological tower and research platform.  The RFP will be seeking a partner ready to contribute the additional resources needed and take responsibility for siting, designing, and constructing the project.  It is expected that the site selected for the project will be favorably suited for a future utility scale wind energy project.

by Bruce Goodman

New forms of distributed energy are one of the promises of renewable energy. There can be many smaller, even very small, electric generating stations dispersed throughout Michigan producing energy from local resources. It is the energy equivalent of buying local, and does not require transmission grid upgrades. But utility-imposed standby rates stand as an impediment. Ostensibly designed to compensate a utility for providing backup power to self generation, standby charges are too often structured to discourage distributed generation. These charges take away the economic incentive to build small energy centers. It is time to take the gloves off and either have reasonable standby rates or institute net metering for sources up to 5 MW. The MPSC can do the former; the Legislature must do the latter. Michigan’s energy future depends on it.

by Bruce Goodman

There are a number of factors identified as impediments to the robust development of offshore wind energy projects in the Great Lakes.  Amoung those most often cited are the following:

• inadequate data on wind speed over one year and over many years;
• the need for strong transmission lines from the lakes to the major populations centers;
• electrical rates in some areas  that are at a level to make wind power not competitive;
• lack of data on how winter ice flows will affect the wind turbine towers;
• the lack of large work ships needed for the construction of wind turbine towers in deep water;
• lake depths at distances offshore beyond line of sight;
• uncertainty in the regulatory system for the permits needed to begin construction; and
• incomplete studies on migratory bird patterns needed to help determined where offshore wind farms can be located

 Until each of these issues is addressed by government or project developers it is unlikely that the Great Lakes will see the rapid development of wind energy predicted by many.  Yet this is, without a doubt, the area of greatest wind resources for the Great Lakes States (and Canada).

by Bruce Goodman

Traverse City Light & Power has approved a 20-year power purchase agreement with Stoney Corners Wind Farm near McBain to purchase 10 MW from five wind turbines. It is anticipated that the five wind turbines will be operating by the end of 2010.

Between 2010 and 2012 Heritage Renewable Energy is planning to construct more projects with the goal of building an additional 400-500 MW. The interconnection at the site has been sized to accomodate a much larger number of wind turbines than what is currently committed. 

In a related development, the MPSC has approved an amendment to the existing Detroit Edison contract with Stoney Corners for a pilot, utility-scale 2.2 MW wind turbine with a permanent magnet generator and direct drive configuration.

This wind farm developer is undertaking a very unique approach on building a wind farm piece by piece, such that the electiricty at the site may ultimately be committed to many different entitites.  Already it has three different types of wind turbines assigned to the project.

Attorney Bruce Goodman

DELEG has funded the installation of anemometers to measure wind speeds on five towers across the state. MSU will collect the data from the towers in Gratiot, Delta, Antrim, Mason and Hillsdale counties and make the data accessible to the public online. The measurements will be taken at three heights, one of which will be as high as 100 meters. The data will be collected for at least one year.

The State of Michigan is doing what it can to encourage wind project developers to work on projects within the state.  The full impact of the renewable portfolio standard is still a few years away, and prices for power purchase agreements with state utilities are barely high enough to finance a wind farm.  Nonetheless, more wind data will be helpful.  Moreover, to the extent this data can be correlated to offshore wind data the long term impact is most likely to be to encourage in the lake projects.

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.

 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.

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.

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.