May 26, 2010 – MPSC Press Release
The Michigan Public Service Commission (MPSC) today released the “Michigan Energy Appraisal: Summer 2010.” The appraisal, published since 1978, reviews the projected prices and availability of energy in Michigan over the summer months.
The demand for energy in Michigan is expected to increase in nearly every sector for 2010, primarily due to real and expected improvements to the U.S. and Michigan economies. Due to above average reserves, no supply issues are anticipated for the summer or winter seasons. Petroleum and natural gas prices are expected to remain relatively stable, with gasoline prices projected to average under $3 during this summer’s driving season. It should be noted that the economic uncertainty also translates into higher levels of uncertainty in these projections.
Electricity - Michigan’s total electric sales are projected to increase by 2.1 percent in 2010, following a 6.7 percent decrease in 2009, assuming normal summer temperatures. Impacted by the recession, sales in 2009 were the lowest seen since 1997 with declines in all sectors: residential, commercial, and industrial. Part of last year’s decline can be attributed to the cooler than normal summer, which saw cooling degree days 35 percent below normal, and what appears to be the bottom of the economic recession affecting the economy in Michigan and the nation. Even with the projected moderate increase in 2010, sales will only approach a return to their 1998 levels.
Natural Gas - Natural gas prices have risen slowly over the past year, i nfluenced by the recovering state of the U.S. economy and world energy markets. Total annual natural gas sales in Michigan for 2010 are projected to be 785.7 billion cubic feet (Bcf), an increase of 8.7 percent over 2009. However, due to the large storage capacity in Michigan, there will be sufficient supplies to meet anticipated demand for the coming winter. Forecasts are based on normal weather for the remainder of the year. Natural gas usage, usually dictated in large part by winter weather conditions, may receive its biggest bump this year from an increase in industrial use and electric power generation, which are projected to experience double digit growth rates in Michigan.
Petroleum - The continued i ncrease in surplus world oil production capacity can more than offset most anticipated supply problems which should help offset upward pressure on gasoline and other petroleum product prices from increased global economic activity for the balance of the year. However, it should be noted that substantial speculative activity in global petroleum markets is resulting in high levels of price volatility. World oil demand is expected to increase in 2010 by 1.6 million barrels per day (m/b/d) to a total of 86.1 m/b/d. This projection is from the EIA’s May 2010 “Short-Term Energy Outlook.” Global oil prices are currently fluctuating in the $65 to $85 per barrel range after dropping as low as $36 in December of 2008. EIA predicts an average of $84 per barrel for the remainder of 2010. However, recent declines in energy markets due to the worsening European debt crisis will likely result in a lower average oil price in 2010.
Motor Gasoline - In 2010, gasoline sales in Michigan are expected to increase 0.9 percent following a decline of 0.8 percent in 2009 and marking the first time since 2004 that gasoline sales in Michigan are projected to increase. The current uptick is due to a nascent and gradual recovery in state economic activity. Projected sales for 2010 are 4,331.9 million gallons. Gasoline prices are expected to remain relatively flat this summer, barring any unforeseen production/supply disruptions.
Distillate Fuel Oil - Distillate sales in Michigan in 2010 are projected to increase by 3.9 percent to just over one billion gallons. Diesel fuel remains the prime component of distillate demand, with the majority being used by trucks on highways. Relative improvement in the state’s economic condition is the primary cause for this increase in demand as more goods are shipped by truck and rail.
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The Michigan Energy Appraisal is prepared every six months. The Energy Appraisal is available on the Commission’s website at: http://www.dleg.state.mi.us/mpsc/reports/energy (http://cis.state.mi.us/mpsc/reports/energy)
May 25, 2010
The U.S. Department of Energy (DOE) today announced the availability of up to $6 million to advance midsize wind turbine technology in order to boost the speed and scale of midsize turbine deployment. DOE will provide the funding over two years to accelerate the development, testing, and commercialization of domestically manufactured, midsize wind turbines with rated generating capacities between 100 kilowatts and 1 megawatt. Through this funding opportunity, DOE will leverage private-sector technology investment by providing cost-shared partnerships to qualified projects in support of the Administration’s drive to create clean-energy jobs, and promote economic development and energy independence. DOE anticipates making up to four initial grants under this competitive solicitation.
Midsize turbines are used at schools, farms, factories, private and public facilities, remote locations, and community and tribal wind projects to generate renewable electricity. The size of these turbines allows them to be installed on the site of electricity use, thus minimizing the need for new electric transmission lines. However, the market for midsize turbines has lagged behind the growing markets for both utility-scale turbines larger than 1 megawatt and for small turbines under 100 kilowatts.
http://apps1.eere.energy.gov/news/progress_alerts.cfm/pa_id=341
Taken from EERE News.
May 11, 2010
Assistant Secretary Cathy Zoi of the Department of Energy’s Office of Energy Efficiency and Renewable Energy joined leaders from 15 countries and the European Commission today at the first Policy Committee meeting of the International Partnership for Energy Efficiency Cooperation (IPEEC) to promote global collaboration on energy-saving programs and policies. U.S. participation in this partnership, launched at the Group of 8 (G8) Energy Ministers Meeting in Rome in May 2009, continues the Obama Administration’s efforts to forge partnerships among governments to address climate change, reduce reliance on fossil fuels, and grow the global clean energy economy.
At the meeting, Assistant Secretary Zoi was selected to serve a two-year term as the first Chair of the IPEEC Policy Committee.
“Smart, efficient energy use has enormous potential to reduce energy demand, improve economic development, and reduce emissions worldwide,” said Assistant Secretary Zoi. “We need to achieve unprecedented speed and scale in deploying energy-saving practices and policies to meet our global challenges, and the IPEEC partnership is an extraordinary opportunity to ramp up this work.”
Over the past year, IPEEC member countries have contributed more than $1.6 million (approximately 1.3 million euros) in funding to support six key initiatives that advance energy efficiency. These projects include:
By John Sarver of the Michigan DELEG.
Governor Granholm was recognized by the Great Lakes Renewable Energy Assoc. at the 2010 Michigan Wind Energy Conference with its first Leadership in Renewable Energy Award. The award recognized her tireless efforts to diversify the state’s economy by providing job-creating, clean-energy solutions for Michigan. It was also announced that all future leadership awards will be entitled the Granholm Leadership in Renewable Energy Award. In making the award, GLREA President Howard Edelson cited the enactment of a renewable portfolio standard, the use of federal Recovery Act funding to help four Michigan manufacturers to retool their facilities for the wind-energy sector, programs that have helped 100 Michigan companies to become part of wind manufacturing, and the No Worker Left Behind program that works with Michigan’s clean-energy companies to retrain Michigan workers.
Vice President Joe Biden has announced that Michigan will receive a $30 million Recovery Act grant to ramp up energy efficiency retrofits in Michigan homes, businesses, and public buildings. The Michigan Retrofit Ramp-up Initiative (MRRI) grant proposal was submitted by the Michigan Department of Energy, Labor & Economic Growth and Michigan SAVES on behalf of a collaborative group of Michigan entities including the cities of Detroit and Grand Rapids and the Michigan Suburbs Alliance. The $30 million for Michigan is the second largest award among the 25 retrofit ramp-up grants awarded to states and communities throughout the US.
http://www.michigan.gov/dleg/0,1607,7-154-25676-231532–,00.html
Renewable Energy & Energy Efficient Technology Demonstration grants will provide matching funds to small businesses for projects that will demonstrate innovative renewable energy and energy efficient technologies not yet widely adopted in Michigan. A total of $1,500,000 in American Recovery and Reinvestment Act (ARRA) funding is available with three to eight grant awards anticipated. Projects must be conducted in Michigan and completed by December 31, 2011. A 50% match is required. Preference will be given to projects partnering with Michigan university engineering departments or the Michigan Manufacturing Technology Center. The deadline for submitting an application is May 21, 2010. www.michigan.gov/energyoffice
Clean Energy Advanced Manufacturing grants and loans will provide $20 million to assist small manufacturing companies, currently located in Michigan, to diversify into high-growth clean energy sectors and invest in advanced manufacturing of renewable energy and energy efficiency systems and components. Renewable Energy applicantions are due on May 14, 2010 and Energy Efficiency applications are due on May 21, 2010. Any business physically located in Michigan with 500 or fewer full-time or equivalent employees, or a business that relocates to Michigan by the time of the award is eligible to apply. Energy Efficiency: www.michigan.gov/documents/dleg/CEAM_Energy_Efficiency_RFP_318749_7.pdf
Renewable Energy: www.michigan.gov/documents/dleg/CEAM_Renewable_Energy_RFP_318752_7.pdf
AgriEnergy Request for Proposal (RFP) has been issued by DELEG, Bureau of Energy Systems to promote low carbon agriculture through the adoption of green technologies and practices that will be implemented from energy audit/assessment recommendations. One statewide, Michigan based project will augment the Michigan Farm Energy Audit and Renewable Energy Assessment Program through: (1) development of an Energy module under the Farm*A*Syst risk assessment tools, and (2) additional agricultural audits/assessments. Up to $300,000 is available to Michigan universities. Deadline is May 7. www.michigan.gov/energyoffice
Michigan.2010 Michigan Green Leaders, recognized by the Detroit Free Press, represent a diverse group of individuals and organizations making a difference including the WARM Training Center and Crystal Mountain Resort, a Green Lodging Michigan Leader www.michigan.gov/greenlodging. Check out the 16 who are leading Michigan to an earth friendly future. http://freep.com/section/green01
First Michigan SAVES loans have been made in the Cherryland pilot which kicked off in February, with the cooperation of Michigan SAVES, Cherryland Electric Cooperative, Brown Lumber Installed Sales & Service (BLISS), and Members Credit Union. To date, 14 loans have been approved and there are 21 customer inquiries active in the queue. In this pilot, residential customers of Cherryland finance energy efficiency measures through a local credit union and pay back the loan on their Cherryland bill. BLISS walks the customer through the entire process and manages a network of contractors to make the energy-saving upgrades. Certified energy assessment professionals-many of whom received training through the local college-are currently conducting home energy assessments and recommending energy-saving improvements. Customers may also select from a list of pre-qualified measures. Customers can learn more and sign up by going to www.michiganSAVES.org/cherrylandpilot. If you would like Michigan SAVES updates, go to http://michigansaves.org/contact.cfm.
New Water Heater efficiency standards have been released by DOE. According to DOE, for most product sizes sold, the new standards can be met with modest changes, such as adding more insulation to today’s conventional tank-style water heaters. However, for the biggest products (those with over 55 gallons in storage capacity), the new standards can only be met with heat pump and condensing technology. Heat pump electric water heaters save at least 50% and gas condensing water heaters save about 25% relative to today’s conventional storage water heaters. The final rule also updates minimum standards for tankless water heaters, pool heaters, and direct heating equipment.
Energy & Innovation Summit 2010 will be held on May 18 & 19 at the Amway Grand in Grand Rapids. The Summit will help participants understand energy efficiency, building successful business models, and get practical advice on funding as well as implementing efficiency efforts. Attendees will learn what really works from global and national leaders. There will be an energy efficiency training seminar on May 20 for those implementing energy projects. www.energysummitonline.com/
Michigan has netted another $5 million in federal funds for clean energy job training. DELEG will receive almost $4.4 million to train 588 people to modernize the nation’s electrical grid and implement smart grid technologies in communities across the state. Northern Michigan University has received $673,000 to develop and enhance the newly established Electric Power Technician workforce training program, which will provide quality training for 40 entry-level technicians each year.
Windstream Wolfe Island Shoals Inc. has been awarded a feed-in-tariff contract by the Ontario Power Authority to develop an offshore wind project, most likely the first offshore wind project in the Great Lakes. The 300 MW site is located west of Wolfe Island in Lake Ontario on approximately 48,000 acres of shallow-water shoals.
General Motors’ Detroit-Hamtramck assembly plant is where the Chevrolet Volt is being built. Production of the extended-range electric car begins in November. Three Volt cars have been built and GM expects to build fewer than 500 preproduction versions before production begins.
2010 Energy Conference and Expo will be held at the Rock Financial Showplace in Novi on May 4, 7:30-3:00. The conference which is hosted by DTE Energy and Engineering Society of Detroit will feature the latest technology, business, and policy developments impacting the energy industry. http://ww2.esd.org/EVENTS/EnergyConf.htm
Annual Wind Industry Market Report from the American Wind Energy Association reports that over 10,000 MW of new wind power was installed in 2009, 36 states now have utility-scale wind projects, Iowa leads in terms of percentage of electricity getting 14% of its power from wind, 85,000 people are employed in the wind industry, 205 educational programs offer a certificate, degree, or coursework related to wind energy, and demand for small wind systems for residential and small business use (100 kW or less) grew 15% in 2009. www.awea.org
Renewable Energy and Sustainable Living Workshop and Expo will be held in New Troy from 9-4 on Saturday, May 8. In addition to providing information and resources on wind, solar, biofuels, and geothermal energy, this year’s event will focus on affordable technologies and projects and renewable energy careers. Also new this year will be a panel of landowners who have renewable energy on their property. www.regroupmi.org/expo.htm.
The Rosenfeld – named after the “father of energy efficiency” – will help standardize references to “energy saved”, rather than such variable calculations as “avoided powerplants” or “cars off the road.” The announcement took place at a special symposium honoring Dr. Rosenfeld at the University of California Davis. The Rosenfeld is equivalent to the following: coal plant capacity of 500 MW, capacity factor of 70%, and systemwide T&D losses of 7% . This combination of parameters would yield annual electricity delivered at the meter of about 3 BkWh/year. Using the carbon burden for US utility coal and the efficiency of average existing coal steam plants, the emissions saved are almost exactly 3 million metric tons of CO2 per year.
Great Lakes Renewable Energy Association (GLREA) has announced that the Rock Financial Showplace in Novi will be the site for the 5th annual Michigan Energy Fair, taking place June 25th – 27th. www.glrea.org
Green Living Options, an education and demonstration center, opened to the public on Earth Day. This center has examples of green construction techniques including advanced framing, insulating concrete forms, structurally insulated panels, and geothermal heating/cooling. GLO has planned several classes designed for homeowners and contractors. www.promotegreen.biz
Energy Tidbits is free and is prepared by John Sarver, Michigan Dept. of Energy, Labor, & Economic Growth. To subscribe, contact sarverj@michigan.gov. Previous copies can be found at www.michigan.gov/energyoffice under Publications.
