This utility is speeding up its carbon reduction timeline
David Wagman | March 29, 2019DTE Energy plans to close two coal-fired power plants earlier than first announced as part of the Michigan-based utility's goal to reduce its carbon emissions by 80% by 2040.
The revised goal moves up by a full decade the carbon reduction commitment the utility made two years ago. In the company's Integrated Resource Plan (IRP) being submitted to the Michigan Public Service Commission on March 29, DTE outlines the steps it will take over the next five years to add more renewables, increase energy efficiency for its customers and retire coal plants sooner than previously announced.
DTE also said it will reduce carbon emissions at least 50% by 2030, surpassing its previous carbon reduction commitment of 45% by that date.
The 2016 energy law passed by the Michigan Legislature requires energy companies to file an integrated resource plan every five years. The IRP provides a comprehensive road map for meeting customers' energy and capacity needs.
As part of its filing, DTE laid out several goals.
Accelerating coal plant retirements: DTE said it plans to close the St. Clair Power Plant and the Trenton Channel Power Plant in 2022, one year ahead of schedule. The River Rouge Power Plant also will be retired in 2022.
The utility is building the 1,150 megawatt, $1 billion gas-fired Blue Water Energy Center to replace part of the retiring generating capacity. Kiewit Construction is building the plant, which will use GE-supplied generating equipment.
Investing $2 billion in renewables by 2024: DTE said it will more than double its renewable energy production over the next five years. By the time all coal is removed from its generation fleet in 2040, the utility's renewable energy portfolio will have quadrupled, it said.
Clean energy to meet customers' sustainability and carbon footprint goals: DTE said it is moving to expand its voluntary renewable program. DTE's MIGreenPower program allows large business and industrial customers to meet their own sustainability goals. Residential and small business customers can choose to source a percentage of their energy from Michigan wind and solar projects.
Investing in energy efficiency: DTE previously committed to reducing energy usage by 1.5% each year within its service area by working with customers to help them save energy. The 2019 IRP steps up the annual energy savings to 1.75%, which is 75% higher than the state requires.
Investing in hydro energy storage to ensure reliability: An $800 million upgrade project is on schedule at Michigan's Ludington pumped storage facility, co-owned by DTE and Consumers Energy. When the project is complete in 2020, Ludington will generate enough power to serve 175,000 DTE households, the utility said.
DTE said that its average annual carbon emissions will drop by 400,000 tons in 2020 and 2021. In 2022, when Trenton Channel, St. Clair and the River Rouge power plants retire, DTE's annual carbon emissions will be reduced by an additional 7.5 million tons.
The good thing about coal is that it doesn't leak out of the ground. It will still be there when we need it.
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