State should have mandate that 25% of power come from renewable resources such as wind, governor says.
DETROIT -- Gov. Jennifer Granholm on Thursday made the business case to increase the amount of energy in Michigan that's generated from renewable sources -- something she said will create much-needed jobs and protect the state's environment.
The governor called for Michigan to join 25 others states in adopting a so-called renewable energy portfolio standard -- which would require a certain amount of energy used in the state to come from renewable sources such as wind, solar and biomass.
"We have the assets to be a leader in this sector," said Granholm, who wants a mandate that 25 percent of Michigan energy come from renewable resources by 2025. "The fact that we don't have the policy is really unfortunate."
On Thursday Granholm convened a round-table discussion in downtown Detroit with nine alternative energy companies. The panel was part of a month-long, nine-city tour of businesses engaged in alterative energy work.
While Granholm says a renewable energy policy would be a jobs creator, opponents say it will drive up the cost of power in Michigan.
A renewable energy portfolio standard would require utilities to generate a certain percentage of their power from renewable sources. But Granholm told The Detroit News she also supports counting energy conservation efforts toward meeting the standard. She said she could envision the standard being applied to automotive fuels and other types of energy consumption, not just the power grid.
Detroit-based DTE Energy Co., Michigan's largest utility, is supportive of the standard, if it allows for energy conservation to be counted and if it can be adjusted should renewable energy prove to be unreliable or too expensive.
Granholm is calling on the state Legislature to pass a renewable energy policy by the end of the year.
She said a standard is needed to attract investment to the state from manufacturers of alternative energy sources, such as wind turbine makers. She said worldwide, $20 trillion will be spent in the next few years on alternative energy.
Some states have seen payoffs after implementing renewable energy standards. For example, Spanish wind power company Gamesa Corporacion Tecnologica SA is building a turbine manufacturing plant in Pennsylvania and Clipper Windpower established its manufacturing operations in Iowa.
Opponents argue that a portfolio standard would increase the cost of power for Michigan businesses and consumers because renewable energy is more expensive to produce than energy from conventional sources, such as coal-fired power plants.
"The (standard) is really a tax because Michigan will pay more for the same amount of energy," said Diane Katz, director of science, environment and technology policy at the Mackinac Center for Public Policy. "High energy cost is already a disadvantage for Michigan businesses."
Friday, November 9, 2007
Eric Morath / The Detroit News
You can reach Eric Morath at (313) 222-2504 or emorath@detnews.com.
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