by Bruce Goodman 

The Detroit Edison Company has filed for ex parte approval by the Michigan Public Service Commission (MPSC) of its 200 MW power purchase agreement (PPA) with Gratiot County Wind LLC.  The contract includes an option for Detroit Edison to purchase either a 59.2 MW or a 89.6 MW share of the project.  The twenty year PPA, with pricing of $94.43/MWh, is the result of the 2009 RFP process which had 35 initial proposals, later narrowed to seven potential suppliers.  (The MPSC has now approved recently submitted PPAs for a total of 20.2 MW with WM Renewable Energy and L’Anse Warden Renewable Energy.)  If the PPA is not approved by October 15 it may be terminated.  Detroit Edison’s option to purchase expires December 17, 2010.

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by Bruce Goodman 

What does it take for a state (that is not California) to have an energy policy?  The question is timely because elections are approaching and one would hope the candidates would address all the important issues.  But will anyone take a public stand on unresolved energy issues: increasing the renewable portfolio standard percentage; new coal-fired generation; feed-in tariffs; standby rates; recommendations of the Great Lakes Wind Council or the Climate Action Council?  I suspect not.  Thus come January we are likely to continue with state energy policy “on the fly”, with a dash of gridlock and pinch of skepticism.  Let the Feds make the hard decisions on GHG regulation and renewable energy standards.  Term limits have done their job—left Michigan with a legislature with little institutional memory and little legislative expertise to address complicated issues such as energy.  Hey, how about energy platforms and energy debates in all the state races so that we can get these issues on the table.  Watt would be wrong with that?

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by Bruce Goodman 

The Holland Board of Public Works has entered an option agreement for 3000 acres of land in five Allegan County townships that could generate up to 130 MW of wind energy. The installation of wind-measuring equipment has commenced, with construction possibly beginning as early as 2013 if the area has sufficient wind resources. The municipal utility already has three sources of renewable energy; a 1 MW share in a Grayling biomass plant and two 6 MW shares in landfill gas generation. Meanwhile, after waiting three and a half years for an air permit for its proposed new 70 MW circulating fluidized bed boiler coal-fired power plant, the BPW has voted to take legal action to compel a decision by the MDNRE.

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by Bruce Goodman 

One of three new federal bio-energy research hubs to work out the science of converting plant matter (other than corn) into fuel to replace gasoline is being funded through a five-year, $50 million federal grant.  Michigan State University and the University of Wisconsin will combine efforts to host the research center.  The other two bio-energy research hubs will be at national laboratories that are part of the DOE.  All the bioenergy centers will focus on turning common grasses, wood chips or other plant material into ethanol.

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by Bruce Goodman 

The prospective buyers of the former Ford Wixom plant are awaiting loan guarantees from the U.S. Department of Energy (DOE) in hopes of closing on the purchase of the site by the end of the year.  Meanwhile, a new law, PA 114 of 2010, provides tax credits for a single facility that will produce large scale batteries and manufacture integrated power management, smart control, and storage systems from 500 kW to 100 MW in size.  The credits would be equal to 25 percent of the capital investment for any tax year, but limited to $25 million per year, for up to four years.

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by Bruce Goodman

DTE Energy is seeking Michigan Public Service Commission (MPSC) approval of two 20-year power purchase agreements and the associated renewable energy credits.  The weighted average price for the 3.2 MW landfill gas project in Orion and the 17 MW biomass project in L’Anse is $98.94/MWh.  This price is below the level assumed in the DTE Renewable Resource Plan.

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 by Bruce Goodman

Verso Paper’s U.P. Quinnesec Mill in Breitung Township has been designated a Forest Products Processing Renaissance Zone by the state.  It is expected to double its capacity to turn wood products into electricity through a $43 million renewable energy project.  This will allow the mill to meet 95 percent of its energy needs using biomass.  The project will include a new Siemens turbine generator, and is expected to start up by December 2011.  As a Renaissance Zone, the company will operate free of virtually all state and local taxes for fifteen years.

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by Bruce Goodman

The State of Michigan has formed a partnership with the government of Navarra, Spain to work collaboratively on renewable energy projects.  The MOU signed in May provides for joint activities, including policy sharing, technology transfer, value-chain mapping, and trade missions.  It targets wind technology, biomass, solar energy, smart-grid technology, and bio-climactic research sectors. Navarra currently produces approximately 65 percent of its electricity from renewable energy sources.  The Renewable Energy National Centre of Spain (CENER), which over the past eight years has become a leader in renewable-energy technology, is located in Navarra and is expected to work with Michigan companies in development efforts, such as testing Energetx Composite wind turbine blades in its laboratory.

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by Bruce Goodman

The Department of Energy, Labor and Economic Growth is producing a monthly 30-minute TV show designed to provide information about the latest initiatives and activities in state government related to renewable energy, green jobs, energy efficiency, and advanced energy technologies. Michigan’s Energy Future Today is hosted by DELEG Deputy Director Liesl Eichler Clark and can be seen on more than 80 cable stations around the state. The July 2009 episode featuring advances in solar energy was selected for an award from the 31st Annual Telly Awards, a national program recognizing outstanding achievement in the TV, commercial, and video industry. See http://michigan.gov/dleg/0,1607,7-154-51651-233579–,00.html

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by Bruce Goodman

Michigan’s best wind resources are in the Great Lakes; a natural resource that can be “used” but not depleted.  Wind is a fuel that cannot be spilled, does not create waste, and has no emissions. Offshore wind provides an opportunity for Michigan to establish a new manufacturing, technical, and industrial support system for which it is well suited and well prepared.  However, this manufacturing opportunity requires that Michigan be both “first-in-the-lake” and offer strong economic incentives for offshore OEMs to locate in the Great Lakes State.  Michigan has a history of being able to leverage its natural resources to stimulate manufacturing.  Now is the time to do it again.  But it must be done quickly, fairly, and unequivocally.  It needs to be easy, not hard, to develop our lake wind resources.  The ripples from rapid lake development could become a manufacturing tsunami.  We should be so lucky.

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