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

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.

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

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.]

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.

by Bruce Goodman

By Executive Order dated July 30, 2009, Governor Granholm put into motion the climate action plan recommended by the Michigan Climate Action Council. She set goals of a 20% reduction in greenhouse gas emissions below 2005 levels by 2020, and an 80% reduction by 2050. The MDEQ was directed to begin tracking progress toward this goal beginning in 2012. Implementation measures include developing:

• Building codes to adopt higher energy efficiency standards;
• Strategies for reducing vehicular congestions; 
• An eco-driver program to improve driving patterns and practices;
• Practices for implementing carbon sequesteration practices in agriculture and forestry; 
• A statewide truck idling program; and 
• Adaptation plans for state.

54 climate mitigation actions form the basis of the climate action plan.

by Bruce Goodman

A few months ago I wrote about the potential for Michigan to become a leader in converting biomass to energy.  We now are reading a lot about the occupant of the new Renewable Energy Renaissance Zone in the City of Kentwood which has various projects underway to convert biomass to energy. Heat Transfer International, Inc. specializes in biomass gasification/electric power generation systems that convert solid and semisolid biomass, such as animal waste, municipal solid waste, and forestry residues, into a combustible gas that can be used to power generators, dryers, heating and cooling equipment.

One of its Michigan projects, converting turkey litter to steam and electricity, is set for commercial operation in mid-October.  An energy developer is negotiating to install the HTI technology at a Michigan landfill site to process municipal solid waste. 

A key element of the patented processes is powering a jet turbine engine with hot air to produce electricity. The MPSC has awarded HTI $2.3 Million in grants to establish testing operations to facilitate the gasification technology and measure emissions from various biomass feedstocks.  It can therefore provide all the information needed for air quality permitting prior to installation taking place.  It will simply run samples of the fuel to be used through its testing facilities and get a printout of the air emissions.  It is thinking and planning like that which will make this Michigan based engineering group a success in the already crowded biomass to energy field.

by Bruce Goodman

In its advisory role to the MDEQ on pending air permit applications, the Michigan Public Service Commission staff has found in two separate reports that there is no immediate need for either the 930 MW coal-fired plant proposed by Consumers Power Company nor the 600 MW coal-fired plant proposed by Wolverine Power Cooperative.  Although previously the MPSC had issued a report calling for at least one new power plant, the MPSC staff’s newest electric demand forecasts do not justify the plants. The findings do suggest there would be a need for new capacity if old capacity was retired.  This seems like the card that Consumers Power Company has been unwilling to play, as it has a number of very old coal fired plants.  Accoring to the MPSC staff, if there is no retirement then there is no need for baseload capacity for 13 years. The implications for Detroit Edison’s proposed Fermi 3 nuclear reactor are not clear.  The earliest in-service date for that $10 billion plant would be 2018.