New Governors Could Mandate 34 GWac More Solar, Wind by 2030

Illinois, Nevada show most potential for solar

A new analysis by Wood Mackenzie Power and Renewables finds that the renewable energy and climate ambitions of governors elected on November 6 could increase the total market for solar in five states by 17.7 GWac, if all five pass 50% by 2030 mandates.

November 6 was a big night for renewable energy and climate policies. While voters rejected a 50% by 2030 renewable energy mandate in Arizona and a carbon tax in Washington, they also elected governors in five states that have called for stronger renewable energy mandates.

Four more either pledged to commit to the Paris Agreement or are in states that have already joined an alliance of states committed to meeting Paris Agreement goals. Wood Mackenzie Power and Renewables has identified renewable portfolio standard (RPS) policies as the most likely way to meet those goals, bringing the total number of states that could potentially see RPS increases to nine.

In a new report, Wood Mackenzie looks at the market ramifications of states passing 50% by 2030 renewable energy mandates. This is less than the 100% being called for by three of these governors, however both timelines and total ambition of the final policies will likely be decided through political processes.

The report found that if all five pass 50% by 2030 RPS policies, this could increase the total solar that is built by 2030 by 17.7 GWac, and the total wind by 16.5 GW. These volumes and ratios are based on current electric demand and the current wind/solar ratio in each state, and it is important to note that these numbers are outside of other renewable development which may happen for other reasons, including to meet current RPS mandates or driven by factors such as voluntary utility and corporate procurement.

The state that would see the most solar market growth as the result of a more ambitious RPS is Illinois, which at 9.1 GWac makes up more than half of the total anticipated increase. This is doubtless due to the much larger population in Illinois, including 8 million residents in Chicago and surrounding suburbs, than other states that are considering raising their mandates.

Wood Mackenzie has expressed concerns regarding Illinois’ financial condition, and it is also unclear how the state’s sizable nuclear fleet would fit into all of this. However, the firm points to a large interconnection queue for wind and solar projects, and also the state’s ability to import capacity from other wind-rich states in the region.

The state with the 2nd-greatest potential for more solar is Nevada. And while Governor-elect Steve Sisolak (D) has called for putting the state on a path to 100% renewable energy, the initial path forward is up to Nevada voters. November 6 saw an electoral victory for the state’s Question 6, which calls for 50% renewables by 2030, however the bill must go to the voters one more time before becoming law.

Wood Mackenzie is projecting that all new capacity under an RPS in Nevada will come from solar, not wind, and that this additional 4 GW by 2030 would more than double the current volume in the state. Nevada is one of only three states where solar met more than 10% of in-state electricity demand in 2017, and the state also has developed its geothermal resources.

Political and infrastructure constraints

The report projects that New Mexico, Colorado and Minnesota would each deploy from 1-2 GWac of additional solar to meet a 50% by 2030 RPS. In Colorado and Minnesota wind is expected to dominate capacity additions, but none of these states have particularly large populations and electric demand.

Wood Mackenzie also included Michigan in the report, but as major actors in this state do not appear to be contemplating an RPS increase we have omitted this from our summary of the findings.

The firm also noted that Democratic governors who have taken office in Kansas and Wisconsin are unlikely to pass RPS policies with Republican control of both houses of each state’s legislature. 

Wood Mackenzie additionally did not provide forecasts for Connecticut and Maine, due to a variety of factors. This includes a preference in the region for importing Canadian hydropower, and “severe transmission constraints” in Maine.

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Michigan Changes Net Metering Rules for Solar Power

Net metering is a boondoggle for residential homeowners who can afford to put solar panel systems on their homes

Michigan has joined other states in realizing that net metering rules as originally designed are biased against consumers without rooftop solar, raising their electricity rates. Michigan will now charge rooftop solar customers at the retail price of electricity for electricity that they consume and pay them a lower price for the electricity that the utility purchases from them thereby charging them for the use of the electrical wires (i.e., transmission and distribution) that non-solar consumers hitherto have had to subsidize. Customers already in the net metering program will be grandfathered for 10 years. By changing the rules on net metering, Michigan will join several other states that have recognized the bias.

Michigan to Replace Net Metering Program with Avoided-Cost Tariff

Michigan utility customers who put surplus electricity they generate back onto the power grid will be paid a lower, avoided-cost rate after June 1.

The Michigan Public Service Commission (MPSC) issued an order Wednesday replacing the state’s net metering policy with an avoided-cost tariff based on how much utilities would pay to build the same amount of generation themselves.

Liesl Eichler Clark, president of the Michigan Energy Innovation Business Council, said the decision will create uncertainty for customers and installers.

Renewable Energy Group Launches Mich. Ballot Campaign

Michigan electric providers would be required to produce at least 30 percent of their energy from renewable sources by 2030 under a potential ballot proposal organizers hope to put before voters this fall.

A group called Clean Energy, Healthy Michigan is preparing to launch a petition drive this week for a statutory initiative designed to increase development of solar, wind and other renewable energy sources.

Clean energy and environmental advocates lost a similar fight in 2012, when utilities opposed and voters soundly rejected a proposed constitutional amendment for a 25 percent renewable requirement by 2025.

Michigan Bill Looks to Clarify Tax Exemptions for Distributed Generation Projects

A bipartisan group of Michigan lawmakers introduced a bill last week that aims to clear up confusion over tax collections for small-scale distributed generation projects.

HB 5143 would reinstate a tax exemption for “alternative energy personal property” that was in place for 10 years under the Michigan Next Energy Authority Act of 2002. That law — signed by former Republican Gov. John Engler — granted the exemption to 13 different kinds of small-scale renewable energy systems meant to offset any portion of a property’s energy use.

Michigan's New Energy Law Gives State More Options

"Michigan is going to control its own energy future."

That's Michigan Agency for Energy Executive Director Valerie Brader, describing the benefits of the state's new energy law, which goes into effect tomorrow.

The law removes the cap on how much utilities can use energy efficiency and renewable energy to meet the state's energy needs, says Brader.

She says energy efficiency projects have already saved the state $4 billion since 2008, and there's the potential for even more, especially if energy efficiency is the cheapest way to meet demand for power. 

Michigan Begins to Unroll New Energy Laws, Study Distributed Generation Costs

A two-year legislative process to reach compromise on wide-ranging energy bills in Michigan will now turn into a two-year implementation period as state officials, utilities and stakeholders comply with provisions in the new laws.

Earlier this month, the state unveiled a new website tracking the progress of various groups involved with changing the way utilities project future energy needs, how energy usage will be managed through efficiency and demand response and how utilities will procure more renewable energy to meet the increased standard of 15 percent by 2021.

3 Republican Governors Embrace Clean Energy’s Economic Promise

Last month, the U.S. inaugurated a new president who has vowed to abandon the landmark Paris climate agreement and roll back bedrock American environmental protections.

But turn to the states and you’ll find a different story, even in the red states that elected President Trump. In fact, Republican governors in the Midwest are prioritizing economic growth and job creation by accelerating investments in energy efficiency and renewable energy. In the few weeks after the election, leaders in Illinois, Ohio, and Michigan have adopted new policies that help tackle climate change and grow the clean energy economy.

Michigan State Legislation Calls for More Renewable Energy

Legislation that some say could increase the number of wind turbines in rural areas and end energy choice has passed the Michigan Senate, and will soon go before the House of Representatives.

Under current law, electric providers have to produce 10 percent of their power from renewable sources.

The bills would raise the minimum to 15 percent by the end of 2021 and set a non-binding goal of meeting 35 percent of Michigan’s electricity needs by 2025 through a combination of renewable energy and energy conservation.

Michigan Senate Passes Energy Overhaul with 15% Renewable Mandate

The Michigan Senate on Thursday adopted a plan to overhaul the state's energy policy, keeping a 10 percent cap on energy choice and establishing a 15 percent renewable requirement by 2021.

Senate Energy and Technology Chair Mike Nofs, R-Battle Creek, has been working on the bills for two years. He said the final product took into account a lot of viewpoints and was not 100 percent what any one entity wanted, including him.

"I believe we have crafted a policy that balances a broad and wide range of interests and addresses the key elements that will serve our state well for many years to come," Nofs said.

Michigan Report: DTE, Consumers Rank Middle of Pack Nationally for Renewable Energy

Rankings show Michigan-based utilities perform better on energy efficiency

Michigan's two largest electric utilities are generally solid performers when it comes to their energy efficiency programs, but are in the middle of the pack nationally with their use of renewable energy, a new report shows.

The report from Boston-based nonprofit Ceres, released Tuesday, ranked 30 of the nation's largest investor-owned utilities on renewable and efficiency performance. DTE Energy Co. andCMS Energy ranked in or near the top 10 for their single-year energy efficiency savings, but fell in the rankings compared to other utilities for their use of renewable power sources.

Sun Doesn't Set on Michigan's Energy Law

Key provisions in Michigan’s energy law will continue into the new year, despite requirements that electric utilities meet renewable energy and efficiency targets by the end of 2015.

Even though lawmakers haven’t adopted bills to update the state’s 7-year-old energy policy, those standards don’t sunset — meaning utilities only will have to maintain current benchmarks unless or until a new law is signed.

Without changes to policy, Michigan’s standards for renewable energy and energy efficiency don’t increase; utilities won’t be required to meet stricter goals than what they’ve already achieved.

Under current law, utilities have to generate at least 10 percent of their electricity from renewable sources — a target they’ve met — and to offer energy efficiency programs to customers with savings equal to 1 percent of total electric sales.

Electricity Customers in Michigan Could Choose How Much Renewable Energy They Want Under Senate Plan

Michigan customers could decide how much renewable energy they purchase under a much-anticipated Senate energy plan.

The energy proposal was more than a year in the making, and to the disappointment of environmental advocates, it does not include mandates for renewable energy or energy efficiency. But in a new twist in an old argument, people would be able to control their own renewable energy future.

DTE Energy Issues RFP for Voluntary Solar Program

DTE Energy Co. has issued a request for proposals for multiple solar-generating plants in Southeast Michigan that would range in size from 5 megawatts to 50 megawatts.

Companies or individuals would propose to build the solar power generation plants and DTE would reimburse their costs. To offset its costs, DTE would own the solar stations and sell subscriptions to customers who would receive credits on monthly bills, said David Harwood, DTE’s director of renewable energy.

Michigan Dems File Bills to Double Renewable Energy, Efficiency Standards

Brief:

• Democrats in Michigan's House and Senate have introduced a package of bills aimed at boosting the state's clean energy economy and increasing the use of renewable energy.
• The legislative package, dubbed "Powering Michigan’s Future," would increase the state's renewable energy standard to 20% by 2022 and double efficiency standards.
• Clean energy and efficiency are billion-dollar industries in Michigan, with about $3 billion in private funds invested in green power over the last seven years, according to lawmakers.

Michigan Democrats Push for 20 Percent Renewable Energy by 2022

Michigan Democrats in the House and Senate on Tuesday released their energy principles, which include increasing the state's renewable energy to 20 percent by 2022.

The concept is to have renewable energy serve as an economic boost while also keeping utility costs affordable.

"Through 2014, renewable energy projects have brought nearly $3 billion in investment to Michigan, and utilities are on track to meet the 10 percent goal required in current law," said Rep. Bill LaVoy, D-Monroe, who serves as Democratic Vice Chair of the House Energy Policy Committee.

Michigan Legislature Considers Solid Waste Addition to Renewable Energy Act, But it's a Curious Approach

“But come now, change thy theme, and sing of the building of the horse of wood, which Epeius made with Athena’s help, the horse which once Odysseus led up into the citadel as a thing of guile, when he had filled it with the men who sacked Ilion.” — The Odyssey, Homer

The Michigan Legislature is considering a bill that changes the Clean, Renewable and Efficient Energy Act in order to “remove unnecessary burdens on the appropriate use of solid waste as a clean energy source.” The act encourages the development and use of renewable energy sources like solar, wind, hydro, coal-fired power using carbon capture and storage (CCS) technologies and biomass. Obviously, the addition of solid waste into the fuel mix as “renewable energy” has many people up in arms.

Michigan Lawmakers Advance PACE-like Loans for Homeowners

There’s at least one bipartisan piece of legislation moving through Michigan’s lame-duck session: A streamlined loan program for residential customers looking to install renewable energy or efficiency systems on their property.

The Municipal Utility Residential Clean Energy Program Act is modeled after the state’s Property Assessed Clean Energy financing law of 2010, bringing to homeowners a similar loan program that until now has only been available to commercial and industrial property owners.

Three State Legislators Want To Kill Michigan’s Popular Clean Energy Law

Three state legislators in Michigan have put together a bill to kill the state’s renewable energy mandate, while their colleagues have already moved on to planning the second phase after it meets its current goal.

Michigan State Rep. Tom McMillin (R), introduced a bill on October 1 that would repeal the state’s renewable portfolio standard (RPS), Midwest Energy News reported on Tuesday. Passed in 2008, the RPS stipulates that 10 percent of Michigan’s energy come from renewable sources by 2015.

Updating the Renewable Energy Standard in Michigan

Public Act 295 was enacted in 2008 as Michigan’s first step towards a renewable energy standard. This act required cooperatives and municipal electric utilities to generate 10% of their retail electricity sales from renewable sources by 2015. Unfortunately, Michigan was in the last group of states to adopt such a standard and the renewable energy target itself was one of the lowest nationwide. Several other states such as Illinois, Ohio, and Minnesota have already increased their renewable energy targets beyond their original standard and have passed new legislation in recent years. With the failure of Proposal 3 in 2012, commonly known as 25% by 2025, Michigan currently does not have a plan in place to take renewable energy to the next level beyond 2015.