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

 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

Consumers Energy has obtained the approval of four power purchase agreements from the Michigan Public Service Commission. The 20- year contracts are for projects with:

•  John Deere Wind Energy for a 90 MW wind project in Sanilac County.
• John Deere Wind Energy for a 59.4 MW wind project in Huron County.
• John Deere Wind Energy and Great Lakes Wind LLC for a 81 MW wind project in Lenawee County.
• Waste Management Renewable Energy for a 12.8 MW landfill gas project in Macomb County.

When the 243.2 MW of renewable energy is on line in 2012, more than 6.2 percent of the utility’s demand will be served by renewable energy generation.

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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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by Bruce Goodman

In March the Great Lakes Wind Council provided written input proposing new legislation to clarify the existing law on use of Michigan’s lakes for offshore wind energy generation. Now, Senator Patricia Birkholz is leading a workgroup of legislators developing a bill to supplement the current law governing use of the bottomlands in the Great Lakes. The workgroup is expected to address specific environmental concerns, location, and decommissioning issues. Birkholz hopes a draft will be ready for legislative consideration sometime this fall, probably after the November elections.  This bill is being considered because many believe Part 325 of the existing Natural Resources and Environmental Protection Act is not specific enough in its provisions to adequately address offshore wind issues.  Others believe the existing law is sufficient an only needs modifications, if anything.

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by Bruce Goodman

Energetx Composites LLC has been awarded a $3.5 million grant to establish a new Center of Energy Excellence (COEE) in Holland. It will collaborate with Oak Ridge National Laboratory and Dow Chemical to develop advanced materials, including carbon fiber, to make wind turbine blades. The COEE will also include workforce training provided by U of M and Kettering University. A second new COEE was established with $6 million in funding. It involves Astraeus Wind Energy, Inc., a joint venture between Sterling Heights-based MAG Industrial Automation Systems Inc. and Eaton Rapids-based Dowding Machining Inc. This venture’s first project will be to build an automated machining center for wind turbine hubs.

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by Bruce Goodman

Comprehensive energy supply policy needs to simultaneously address concerns about climate, energy security, and economic viability.  Anyone who advocates a program on a single issue needs to be viewed skeptically.  The wind does not blow nor the sun shine all the time.  There is no single answer – technical nor policywise – to all the problems and issues.  There needs to be a consensus that the free market does not appear to be ready to provide answers.  The government needs to kick start the problem-solving process with clear goals and simple programs.  Everyone needs to accept that the perfect energy supply policy will not spring automatically out of this process.  Energy prices will inevitably increase – there is no free lunch.  Even a long journey begins with but a single step.  That step must now be taken, both at the state and federal levels.

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