Liesl Clark, President - Michigan Green Communitiesmigreencommunities.com/wp-content/uploads/2016/06/Clark... · 2016. 6. 22. · Wind Works Michigan "The most recent contracts approved

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Michigan Green Communities Conference June 15, 2016

Liesl Clark, President

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Current IEI Board of Directors

Lauren Bigelow, Growth Capital Network

Tom Catania, UM Erb Institute for Global Sustainable Enterprise

Keith Cooley, Principia LLC

Bruce Goodman, Varnum LLP

Jim Saber, NextEnergy

David Simon, TOGGLED

Levi Thompson, UM Hydrogen Energy Technology Laboratory

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Overview of Current IEI Activities

Research and Policy and

Market Development

• New Utility Business Models • Demand Response • Solar on the Grid • Distribution Planning

• Clean Power Plan • Michigan Compliance

Strategies • STEER Modeling

Community Energy Initiatives

• Solarize Michigan • Grand Rapids 2030

District • Wind Works in MI

Industry Engagement

• Industrial Energy Efficiency Roundtables

Other Activities

• MPSC Interventions

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Grand Rapids 2030 District

Launched Grand Rapids 2030 District with Monday press event

• 39 Founding Members • 61 buildings • 10M sq. feet of real estate • Larger than San Francisco

Voluntary goals by building owners to reduce building energy consumption, water use, and transportation emissions by 50% by 2030 across downtown area - New buildings would be carbon neutral by 2030

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Key Elements

@GR2030

➢ Private Sector Led Community-based effort led by private sector leaders Entirely voluntary; does not involve additional layers of regulation or bureaucracy Focused on market realities and real-world solutions

➢ Focused on Energy, Water, and CO2 from transportation Targets developed locally in line with Architecture 2030 Challenge for Planning Focused on range of sustainability measures

➢ Involves both new and existing buildings Building performance benchmarked against national average for similar buildings (CBECS 2003) Water and transport emissions for new buildings benchmarked against current District averages - Requires initial benchmarking of District performance

➢ Part of growing network of leading cities

Grand Rapids 2030 District

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Current 2030 Districts

@GR2030

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2030 Commitments:

Targets and Measurement

@GR2030

Existing Buildings New Buildings/ Major Renovations

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Solarize Michigan

• Reach enough installations to prime the local market for solar

• Michigan only accounts for 0.2% of the entire national deployment

• There are currently only 22 installations within the three counties

• Develop long-term sustained growth through solar contagion to support the supply-chain and major employers

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Solarize Michigan

Midland, Bay, and Saginaw Counties Partnering with Traverse City efforts 75 sign-ups, 4 planned installations, 1 completed

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Wind Works Michigan

Working with Wind on the Wires, AWEA, Energy Foundation, and developers on series of community conversations about large-scale wind projects Hosted three public forums on wind – Gratiot, Tuscola, and Sanilac Next forum set for Cass City – July 18th

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•Build understanding that wind projects are community assets that bring substantial economic, environmental and health benefits to the local communities and residents. •Demonstrate that wind developers are committed to maintaining a dialogue, keeping communities informed, and responding to community concerns. •Help the wind industry learn about and understand concerns from local communities and address issues in a manner that builds relationships, inspires confidence and enables consensus.

Wind Works Michigan

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Wind Works Michigan

"The most recent contracts approved by the Commission for new wind capacity have levelized costs in the low $50s per MWh range, which is about 10 percent less than the least expensive levelized contract prices from 2011 and half of the levelized cost of the first few renewable energy contracts approved in 2009 and 2010." The cost of electricity from a new coal plant is estimated at $133 per MWh. -Michigan Public Service Commission. Report on the Implementation of the P.A. 295 Renewable Energy Standard and the Cost-Effectiveness of the Energy Standards.

Is Wind Energy affordable?

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Research and White Papers

Engaged in workgroup on new utilities business models – focused to date on demand response, may shift to distribution grid, PBR

• Considering development of white paper to advance what has been limited discussion

• May also work to identify other opportunities

Also engaged in Clean Power Plan SIP development

• Likely to be involved in stakeholder group

• Seeking add’l opportunities

Project Overview Michigan’s policy and business leaders, advocacy groups, and stakeholders are currently engaged in dialogues about future energy policy in Michigan. At the same time, the business landscape for electric utilities is shifting, due to factors like emerging technologies, changing economics of different fuel sources, state and federal policies, aging infrastructure, and regional wholesale electric market influences. Adapting to this shifting business landscape is challenging for utilities, primarily because the current utility regulatory model is based on new plant construction and electricity sales (which are being eroded due to state and federal policies and new technology) and because of deficiencies in the existing electric delivery infrastructure (which limit integration of new technologies). To address these challenges and allow for successful implementation of the state’s new energy policy, there will need to be enhanced coordination, thoughtful planning, and appropriate implementation of regulatory and utility ratemaking models.

In response, the Michigan Energy Office, with grant support from the U.S. Department of Energy, is working to create a stakeholder- and research-driven roadmap that aligns electric utility business interests and customer behavior with public policy goals. The project is directed by a multiagency steering committee, informed by a multisector stakeholder group, and supported with internal agency staff and external partners. Together, this team will review Michigan’s energy policy goals, review current relevant research, and explore new and innovative electric utility ratemaking and rate design approaches to achieve those goals.

The roadmap process is divided into three phases: baselining, visioning, and implementation.

Phase I: Baseline Assessment

The baseline assessment will serve as a critical foundation for multiagency coordination, stakeholder engagement, and overall roadmap development. During Phase 1, which began in January 2015, the

steering committee determined the following information was necessary to serve inform the process:

Michigan’s current energy policy landscape and regulatory framework