DTE proposes huge increase in wind, solar energy, faster closure of Monroe plant
DTE Energy on Thursday unveiled its integrated resource plan, a road map for how it intends to generate power for its 2.3 million customers in southeast Michigan over the next 20 years. The plan calls for dramatically increased wind and solar energy generation built in Michigan; increased battery storage; quicker closure of its large, remaining coal-fired power plants, and meeting bigger carbon reduction goals sooner than its previous plan in 2017.
"Across the country and here in Michigan, the energy landscape is changing rapidly and fundamentally, as coal gives way to natural gas and renewables to power what we call the new modern grid," said Jerry Norcia, DTE Energy chairman and chief executive officer.
The plan would invest $9 billion in Michigan's economy over the next 10 years, he said.
Norcia called DTE's "CleanVision plan" a "20-year proposal to dramatically transform how we generate or produce clean energy for our 2.3 million customers — all the while investing in a modern grid that keeps energy reliable and affordable."
DTE's renewable energy portfolio would increase from about 20% now to 60% by 2040.
Five key takeaways from DTE's energy plan
Meeting net-zero carbon emissions goals sooner.
Through significantly increased use of wind and solar energy, transition to natural gas-fired power plants, improved efficiency and battery storage, DTE Energy officials intend to reduce carbon emissions by 85% by 2035 and by 90% in 2040. That's stepped up from the 80% by 2050 targets the utility set in 2017. The company now targets net-zero carbon emissions by 2050.
According to NASA, the planet's average surface temperature has risen about 2 degrees Fahrenheit since the late 19th century, a change driven largely by increased carbon dioxide emissions into the atmosphere and other human activities. Most of the warming occurred in the past 40 years.
Many scientists believe a limited amount of time remains to dramatically reduce carbon emissions into the atmosphere before already-occurring problems significantly worsen, such as drought or more intense storms that threaten food production, or rising sea levels that increase the risk of catastrophic flooding. Power generation is one of the leading emitters of carbon.
2. A huge increase in wind, solar generation
DTE Energy officials propose a major investment in wind and solar energy in Michigan — 15,400 megawatts of new generation by 2042, up from the existing 3,000 megawatts of wind and solar generation today. That's enough renewable energy to power 4 million homes.
The utility also proposes 1,800 megawatts of new battery storage, more than double the amount of storage DTE currently has on its energy grid, to help meet demand when less wind and solar power are produced.
The operator of the Midwest's electrical grid in July approved a $10.3 billion upgrade of power transmission systems across nine states, including Michigan — an attempt to build a smarter, more interconnected and nimble power grid ready to better accommodate renewable energy. The so-called Tranche 1 extends transmission lines into the plains of the Dakotas, Iowa and northeast Missouri, tapping into some of North America's best wind energy potential. Future proposals would connect to the southeastern U.S. grid, opening up more solar potential.
But Norcia on Thursday said it still makes sense for DTE to make a large-scale investment in wind and solar generation built in Michigan, despite its more limited capacities.
"Having control of the assets in your own state gives you certainty that the assets will be available when you need them, and not subject to transmission bottlenecks or other concerns that may not have that power arrive in the state of Michigan," he said.
The emphasis on new solar development is large-scale, utility solar, not in distributed power, so-called rooftop solar.
Norcia said that approach keeps generation more affordable for DTE's customers.
"Distributed energy resources, we certainly welcome those onto our grid," he said. "They're being attached every day. (But) we are not, at this time, going to have any plans to build distributed energy resources ourselves — we are not going to install rooftop solar. But there are companies out there that are very active in our territory, and we welcome that."
3. Closing the Monroe, Belle River coal plants sooner
"When we talk about carbon reduction, it really has to do with retiring the last two coal-fired plants that we operate," said DTE Energy president and chief operating officer Trevor Lauer.
DTE's Monroe power plant is one of the largest coal-fired plants in the country — and the nation's second-largest greenhouse gas emitter. Moving on from the plant has always been one of DTE's last checklist items, because it is such an important power generator, producing 30% of the utility's overall generation.
DTE now proposes beginning to shut down Monroe 12 years ahead of its previous 2040 schedule. Two power-generating units at the plant would be closed by 2028 under current plans, with the remaining two shut down by 2035.
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DTE will make the final transition from the power Monroe once generated to "whatever technology is available in the 2030s" that best does the job affordably and cleanly, Norcia said. If a technology available now had to be used, it would be "a natural gas plant that captures carbon and stores it underground," he said.
DTE's Belle River power plant in St. Clair County would convert from a 24/7 coal plant to a natural gas peaking plant, operating during high-demand periods.
"That's going to be really important at times when we have extreme weather or high demand, to make sure that if the sun isn't shining and the wind isn't blowing, we can make sure we are providing the power that our residential, commercial and business customers need," Lauer said.
The conversion of the Belle River plant is slated for completion by 2026. The nonprofit environmental group the Sierra Club was examining DTE's new plan, but has qualms about its continued reliance upon natural gas.
“While we appreciate DTE proposing a faster path beyond coal, burning it at two units of the Monroe plant until 2035 is too long to meet the urgency demanded by the climate crisis," said Mike Berkowitz, a representative of Sierra Club Michigan's Beyond Coal Campaign.
"We also plan to carefully scrutinize whether Belle River can be replaced with clean renewable energy that is good for jobs, public health and the climate, rather than converting that plant to burn a different polluting fossil fuel — fracked gas — until 2040."
4. No new nuclear plants
Nuclear power is a key component of power plans globally, because it does not generate carbon emissions — though the tradeoff is potentially harmful spent nuclear fuel that requires special storage for centuries.
DTE officials had earlier discussed the possibility of small, modular nuclear generation as part of its cleaner energy mix. But the utility's 20-year plan does not include new nuclear generation.
"Obviously, Fermi (the Fermi 2 nuclear power plant in Monroe County), we view that as an excellent asset inside our fleet," Norcia said. "It's carbon-free and generates power 24/7."
Small nuclear reactors are still an emerging technology, and are not yet commercially available, he said. It may take a decade or so before their use is viable.
"It's certainly a consideration for the future, as this technology evolves," he said. "Right now, new nuclear is very, very expensive when compared to other resources like renewables and natural gas."
5. Keeping the transformation affordable
The company has a no-layoffs policy, even as the Monroe plant is retired and the Belle River plant transformed, using attrition from retiring employees and the ability to shift workers to other positions of need, Lauer said.
Costs to ratepayers for the energy transformation are projected to cause the average residential ratepayer's monthly bill to increase by 40 cents, DTE Energy officials said. The utility has reduced the costs associated with its changes by $1.4 billion over its previous plan, Norcia said.
The submission of DTE's integrated power plan to the Michigan Public Service Commission opens an administrative law proceeding in which interested parties will have opportunities to intervene. Public comments on the plan will be submittable once the proceeding is underway. The process could take most of a year.
Contact Keith Matheny: kmatheny@freepress.com
This article originally appeared on Detroit Free Press: DTE proposes huge increase in wind, solar; closing coal plants faster
