Government Energy Policy, Business and Technology

5 takeaways from Michigan's renewable portfolio standard report

Energy News Network: The debate over renewable energy in Michigan is again in full swing. Within the past two weeks, advocates launched a ballot initiative to require utilities to hit 30 percent renewables by 2030, and Consumers Energy announced a goal to end coal use and up its renewable portfolio to 40 percent by 2040. (Consumers’ announcement follows a similar one last year by DTE Energy.)

Meanwhile, the Michigan Public Service Commission a week ago offered its latest annual report on the implementation of the state’s existing renewable portfolio standard. In short: it’s working as intended. Utilities met a 10 percent renewable standard by 2015 and are likely to meet a 15 percent target by 2021. Here are five takeaways from the report:

The cost of renewables is falling much faster than regulators expected. The average price for renewable contracts plunged 38 percent between 2009 and 2016 to $72.60 per megawatt hour (MWh). Wind contracts were even cheaper, landing between $45 to $69 per MWh, or roughly half of what they were when the 10 percent standard took effect. The MPSC reports that not only are renewables on a “downward pricing trend,” but also that the prices are “much lower than expected.”

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