Dive Brief:
- Michigan utilities are on target to meet the state's 2015 requirement of 10% renewables, but there's no sign yet of a drive to extend the mandate any further despite a Union of Concerned Scientists' study saying a 30% goal by 2030 would be feasible at little extra cost to ratepayers.
- The state's mandate is tiny compared with New York's 29%-by-2015 standard. Elsewhere in the Midwest, Illinois and Minnesota have targets of 25% by 2025.
- Lawmakers should require utilities to sign long-term power purchase agreements with renewables developers, according to the study, because the sector is pulling back from investing in the state as there is little certainty that utilities will buy the power.
Dive Insight:
In 2012, Michigan voters rejected a proposal that would have increased the renewable energy standard to 25% by 2025. Although Gov. Rick Snyder has expressed general support for green power, there is no ongoing policy effort to raise or extend the mandate.
To the Union of Concerned Scientists, this absence of activity means development will just stop. “Construction has already started on the last renewable energy projects to meet the current standard,” UCS energy analyst Sam Gomberg said. “It’s also important from the utility side of things – what do they do with old coal-fired power plants? How much do they really start looking at natural gas?” The report says that renewable power which helps meet the RES costs an average $78/MWh, while building a new coal plant costs an estimated $133/MWh.
