Michigan Dukes Out 25x25

Michigan voters have decided to put a constitutional amendment on their ballot in November. The 25x25 initiative got 550,000 signatures, (surpassing the 322,000 signatures necessary), making it eligible for the November ballot. The 25x25 initiative would require energy providers to produce or purchase 25% of their electricity from renewable sources by 2025. Eligible energy sources include biomass, hydro-power, solar energy and wind. The amendment even includes a provision that limits the utility customers' annual rate increases to 1%, ensuring the customer isn't responsible for covering renewable energy costs to the utility.

Of course the bill has found opposition as well as supporters. Both the Michigan and Detroit regional chambers of commerce oppose the bill. But many view the issue as pitting utility companies and their employee unions against energy entrepreneurs and renewable energy advocates.   Currently Michigan has a goal to make 10% of electricity production from renewable sources- and the two largest utilities in Michigan claim that they are on track to reach that goal by 2015. However, they feel the 25x25 goal is unrealistic. According to them, it will take 3,100 more wind turbines spread over an area 17 times larger than the city of Grand Rapids to reach the goal. And it will cost the utilities companies $12 billion. Regardless of how biased those numbers might be,  given how little renewable energy is currently being produced in Michigan today, perhaps its that very investment the state needs.

Michigan has no large scale renewable energy production facilities in operation, in construction or in even in development. The state only has 400 mW of wind capacity installed -and with the vast coastlines the state boasts, it has massive potential for a thriving offshore wind industry. The strong manufacturing base and skilled workforce eager to tap into any areas of growth- make Michigan ripe for a renewable energy manufacturing and generating industry. On top of all of that, Michigan currently outsources most of its energy production to other states: it spends $1.8 billion for out of state coal- which accounts for 60% of its electricity consumption. In the case of energy- it's safe to say Michigan is under performing. But is the 25x25 the key to unlocking that wasted potential?

The opposition claims cementing the goal into the states constitution limits future flexibility. They have also estimated that it will cost the state $10 billion to implement. Interestingly enough, supporters have claimed the 25x25 initiative will attract $10 billion in investment to the state. So apparently we all agree it will cost $10 billion to reach the 25% goal- and now the question is who will pay?  Supporters have pointed to other states with similar goals, like Iowa with a 21% goal, to show that significant cost increases aren't an inevitable result of a renewable energy portfolio like this. They have also illustrated the job growth opportunity, the economic development and the environment preservation benefits that a plan like this can provide.

One thing is clear- this will continue to be fought out on the political stage until November- and then possibly taken to the judicial stage. Who will win, though, is not that clear. Want to read more about this debate? Check out the links below!

The Detroit News- Opposition to Renewable Energy Mandate Gears Up by Christine Macdonald  

Renewable Energy World- In Michigan's Renewable Energy Battle, Voters May Get Final Say  by Steve Leone

Michigan Radio - Renewable Energy Campaign Files for November Ballot by Rick Pluta