Renewables and Energy Efficiency Alone Could Power Michigan

LANSING, Michigan, August 12, 2009 (ENS) - Michigan's power needs can be met with a combination of renewable energy sources coupled with "aggressive energy efficiency programs," finds a new energy report commissioned by the Natural Resources Defense Council.

By displacing energy generated by burning coal, oil and gas, an energy efficiency program alone could save Michigan $3 billion in electricity costs over the next 20 years, the report shows.

"Michiganders need to think about energy like an investor right now," said Rebecca Stanfield, a senior energy advocate at NRDC. "Would you put all your money towards yesterday's dirty technology? No. And Michigan ratepayers shouldn't be saddled with that sort of risky investment either."

Michigan's electricity currently comes primarily from large baseload coal and nuclear generating stations with some additional generation from natural gas-fired plants. For example, in 2005, approximately 58 percent of the power generated in the state was produced at coal-fired power plants. Only about three percent of the power generated in the state was from hydroelectric and other renewables.

But the report finds that on-shore wind and off-shore wind; solar power; burning biomass and landfill gas; cogeneration, which produces combined heat and power; and hydroelectric power would all help Michigan reduce its dependence on fossil fuels.

Stanfield says the time to choose clean energy and efficiency has arrived. "The state has the enviable opportunity to rebuild its economy with cutting edge energy technologies which will create jobs and clean the air," she said.

UNI-Solar's thin-film laminate roofing on the production line at the United Solar Ovonic factory in Auburn Hills, Michigan. (Photo courtesy United Solar Ovonic)

"A Green Energy Alternative for Michigan," was written by Synapse Energy Economics, a Massachusetts-based consulting firm on energy and environmental issues.

It analyzes the state's projected electricity demand and the liabilities associated with air and global warming pollution, as well as the opportunities offered by clean energy technologies for job creation, industrial investment, and resilience in the face of changing circumstances.

The Synapse report comes as Michigan elected officials and policymakers are taking important decisions regarding the state's energy future.

The Michigan Public Service Commission is set to make recommendations to the Department of Environmental Quality on the need for power and availability of cleaner alternatives to coal later this month.

To help slash greenhouse gas emissions in the state, the Michigan government will revise building codes to include higher energy efficiency standards, expand the use of intelligent transportation systems, and teach farmers how to capture and store carbon dioxide.

An Executive Directive issued July 29 by Michigan Governor Jennifer Granholm implements these and other recommendations from the Michigan Climate Action Council that will help Michigan reduce its greenhouse gas emissions by 20 percent by 2020 and 80 percent by 2050.

Granholm created the 35-member Michigan Climate Action Council by executive order in November 2007. The council was charged with compiling a comprehensive climate action plan with recommended greenhouse gas reduction goals along with potential actions to mitigate climate change.

The Council unanimously recommended that Michigan should set a goal of reducing its greenhouse gas emissions by 20 percent by the year 2020, and by 80 percent by the year 2050.

"The old argument that anything that helps the environment has to hurt the economy is over," Granholm said. "The steps I'm taking today and the other recommendations of the Michigan Climate Action Council will save Michigan businesses and citizens money, create new jobs and reduce our dependence on foreign sources of energy."

The council includes representatives from Michigan's Big 3 automakers, two major utilities and municipal utilities, Dow Chemical, Delta Airlines, the agricultural and forest industries, labor unions, academics, environmental groups, Native American tribes and state and local governments.

Michigan also has a requirement for the Department of Environmental Quality to consider the need for all prudent alternatives before permitting construction of any new coal-fired power plant.

The Michigan Public Service Commission's 2007 electricity plan is "out of date," the report emphasizes, because it projected a 10 to 17 percent growth in electricity demand and anticipated a need for significant investment in baseload coal-fired generation.

"Such a plan might work in an era of steady demand growth, predictably low costs for coal-fired electric generation, and little concern over air emissions and global warming. However, that is not today's world," Synapse says in the report.

The six new coal plants that are being proposed in Michigan to meet future demand could cost state ratepayers in excess of $12 to 14 billion, the Synapse report finds.

If they generate at expected levels, the six proposed coal plants would emit an estimated 19 million tons of the greenhouse gas carbon dioxide each year for an estimated 60 year operating life. That would mean an additional 1.2 billion tons of CO2 being emitted into the atmosphere.

"Federal regulation of greenhouse gas emissions is inevitable," the report warns. "The new coal plants being proposed for Michigan would expose the state's ratepayers to the cost of CO2 emissions allowances amounting to between $260 and $800 million annually in their early years of operation, and to between $760 million and 2.3 billion annually in later years."

The Synapse report advises that Michigan's most attractive energy choice by any measure is energy efficiency, which can be quickly implemented, save energy, make businesses more productive, lower energy bills, create jobs, avoid pollution, and keep money in Michigan.

"Programs that promote cost-effective efficiency make the single best energy investment available to Michigan citizens, business, and institutions," the report states.

"A smart energy future for Michigan is one that takes advantage of a diverse and distributed array of clean energy resources," said David Schlissel of Synapse, one of the report's authors.

The clean energy portfolio outlined in the report promotes economic recovery within the state by creating jobs in the manufacture and installation of wind turbines and solar cells, and implementation of efficiency improvement to homes, businesses and other buildings.

Clean energy and efficiency would allow Michigan to retain energy dollars that would otherwise be used to purchase energy resources and services out-of-state. Future clean energy costs would be lower than current costs, the report projects.

"Right now, there is breathing room to really plan a smart new energy infrastructure in the state due to the current lull in electricity consumption," Schlissel said. "It is an important opportunity to develop a system that will reduce energy demand and provide new, clean energy even as the economy recovers," "I hope Michigan will take advantage."

Click here to read A Green Energy Alternative for Michigan

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