Lansing, me. – The MPSC today approved two agreements with Consumers Energy Co. that support the increasing use of renewable energy sources by the utility. An AAE is an agreement between a supply company and a generator in which the supply company buys electricity from a solar facility connected to the supply network. In addition to purchasing power, it is customary for a utility to purchase credits for renewable energy or RETs. We then discuss why third-ownership offers benefits to companies that are not energy development specialists and for which it would be difficult to acquire renewable electricity generation facilities. We explain what AAEs are, how they work, and the different financial models we have created for different types of PPPs that U-M could participate in. Then there are examples from other institutions, including Ohio State University, that participate in and benefit from the PPP agreements. We are also discussing current and past electricity consumption and U-M spending to determine the volatility of current electricity prices and to show how volatile U-M prices could avoid the use of an AAE. We calculate the savings that U-M might have had if it had signed an AAE similar to the OSU signed in 2012. We will then discuss future electricity price projections to show that lower electricity prices, along with an AAE, can lead to significant savings over time. Favourable economic profitability: CECs purchased from countries where the development of renewable energy is mainly fuelled by a favourable economy may not be able to effectively encourage new developments.
Double counting: Poorly tracked CICs can be counted twice – once as a purchase of green electricity and once by a distribution company to meet government renewable energy standards. But DTE`s IRP does not propose such a process. Failure to apply for new energy resources prior to the filing of the PRI is not in accordance with state law, an administrative judge (ALJ) recently found in a motion to decide. DTE is the largest federal supply company and expects to reach up to 1,400 MW of wind and solar power by 2024. This would be a major renewable energy development for Michigan, which currently has about 1,900 MW of wind and 167 MW of solar power. For example, in 2016, lawmakers urged Michigan distribution companies to enter into contracts with independent electricity producers. However, even if these electricity purchase contracts prosper, state-owned enterprises continue to directly own many wind farms, solar projects and other distributed resources. Many of these projects were developed by independent companies and then sold to the distribution company.
The most useful arrangement for taxpayers varies from project to project, which is why Michigan`s energy policy should aim to keep all options on the table when service companies and developers are planning next-generation resources. Regardless of this, the MPSC approved a turbine purchase agreement between Consumers Energy Co. and General Electric Co., as well as a balance between facility construction, procurement and construction contract between the supply company and contractor Barton Malow Co. for the 150 MW construction project in Gratio County (case U-15805). The agreements reflect an increase in level energy costs (LCOE) for the project to USD 52 per megawatt hour (MWh) (US$46 per MWh). A direct electricity mooring contract (“PPA”) refers to an agreement between a customer and a generator in which the customer purchases electricity from a local solar facility. It is a simple vanilla structure and very often for solar projects. The acquisition of clean energy in Georgetown goes beyond REC`s purchases and includes improving the energy efficiency of buildings, involving