The Michigan Public Service Commission’s (MPSC) sixth annual report shows that 9.1% of Michigan’s electricity requirements were being met by renewable energy back in 2014. In 2015, that percentage is expected to be above the 10% requirement set by the State.
MPSC Chairman Sally Talberg said “Michigan’s steady progress toward reaching – and exceeding — the 10-percent-by-2015 renewable portfolio standard shows the state’s commitment to a diversified resource base. Even more encouraging is the continued downward price trend of renewable energy contracts, the last few of which are less than any new electric generation.”
Some of the highlights from the report include:
- For 2014, the estimated renewable energy percentage reached 9.1 percent, up from 7.8 in 2013.
- All electric providers are expected to be able to meet – or exceed — the 10 percent renewable energy standard in 2015.
- Approximately 2,500 MW of renewable energy generators are operating in Michigan and registered with the Michigan Renewable Energy Certification System (MIRECS).
- In July 2014, Consumers Energy Company reduced its renewable energy surcharge to zero for all customers. Alpena Power Company and DTE Electric reduced renewable energy surcharges to zero for all customers effective July 2015 and December 2015, respectively.
- There has been significant growth of wind generation in Michigan’s REC portfolio, from 7 percent in 2009 to 44 percent in 2014.
- At the end of 2015, including wind projects shortly before PA 295 and wind projects developed under PA 295, there were over 1,500 MW of utility-scale wind projects in operation in Michigan. A total of 484 MW of new wind generation is expected to begin operating by the end of 2016 (including 333 MW developed by non-MPSC rate-regulated providers). Several large solar projects are under development and planned to begin commercial operation during 2016.
- The actual cost of renewable energy contracts submitted to the MPSC to date continues to show a downward pricing trend. A recent contract approved by the MPSC for new wind capacity has levelized costs lower than $45 per MWh, about 10 percent less than the least expensive levilized contract prices from 2011 and half of the levelized cost of the first few renewable energy contracts approved in 2009 and 2010.
- The combined cost for renewable energy and energy optimization is $37.43 per MWh, less than any new generation, including new natural gas combined cycle plants, when compared to the Energy Information Administration levelized plant costs for 2014.
Michigan is expected to maintain the same amount of renewable energy credits this year and into the future.