Grady Nance, manager of DTE Energy Renewable Energy Development, said that DTE Energy will have to add a total of 1,200 megawatts to the utility’s portfolio to meet the state’s new energy mandate requiring utilities provide 10% of electricity from renewable sources by 2015.
DTE Energy Wind Site Development Manager Matthew J. Wagner during Huron county board of commissioners meeting of the whole said that a good portion of that, roughly 4 to 4.5%, likely will be generated from wind projects in Huron county.
“We’re going to be running hard to do that,” he added.
Nance said that the state law requires DTE Energy purchase at least half of the remaining 9% of energy that has to come from renewable energy sources from a third party, such as John Deere Renewables. DTE Energy’s aim is to build up half of the remaining 9% through its own renewable energy development projects. It will do so primarily through commercial-scale wind projects, and some smaller solar projects.
“Our plan filed (with the Michigan Public Service Commission) says we will have about 565 MW of wind energy on our own,” Nance said.
Gary Bauer, DTE Energy’s easement consultant, said as of this week, DTE Energy has between 55,000 and 56,000 acres of land easements signed. There are thousands of other acres still in the works, but if all of the other pending deals were closed today, DTE Energy will have a total of 62,000 acres of land easements signed.
Nance and Wagner said that DTE Energy’s ultimate aim is to generate roughly 565 MW of wind energy through a number of different wind farms in Huron county by 2028. That means there will be about 280 turbines installed in the county within the next two decades, Wagner said. Wagner has calculated 280 turbines assuming 2 MW turbines are used in the developments.
The reason that 2028 date is there is because of stipulations in the state’s energy law that allow for the company to construct some of the wind farms that will help generate the 565 MW total after the year 2015.
The company plans to have at least 125 turbines in the area by 2015, Nance said.
Nance said that currently, the company is planning three 50 MW wind farms that will be completed well before 2015.
The locations of those projects have not yet been determined.
The commissioners asked whether more than 60,000 acres were necessary for 280 turbines, and DTE Energy officials said it’s not. Nor is the extra land being acquired with the specific intent for future expansion.
“Even though we’re acquiring more land, it does not mean we have to put a turbine there,” said DTE Energy Renewable Energy Specialist Mike Serafin.
When commissioners asked whether DTE Energy plans to get more than 10% of its energy from renewable sources, company representative said it’s unlikely, because renewable energy is more expensive than energy produced in other facilities. If the company were to generate more than 10% of its electricity from renewable energy sources, it would have to increase rates, which is something the MPSC frowns upon, and MPSC approval is required for any rate increases.
The utility is able to finance renewable energy projects to meet the state’s 10% by 2015 mandate because the energy package passed last fall allows for utilities to charge a surcharge to fund renewable energy projects.
Commissioners also asked whether DTE Energy would be interested in an offshore wind turbine development. The company representatives said no, because offshore projects are very complicated and expensive. Also, the state currently does not have a system/program for leasing the lake’s bottomlands.
Commissioner John Horny asked if the turbines will be sited farther apart than the ones at the Harvest Wind Farm in Elkton. Wagner said that the company has heard from at least one local resident at that project who has experienced some flickering and noise issues because of turbines sited near the individual’s home.
Wagner said that DTE Energy is learning all it can from the area’s two existing wind farms, and will do its best to avoid any problems that could arise because of where turbines are sited.
“You need to do the best job you can … particularly for persons that aren’t part of the wind farm,” Wagner said.
DTE Energy officials also were asked whether the utility is working on wind development projects elsewhere. They said while the company has been contacted by some third party developers interested in developments outside of Huron County, the utility has not agreed to any other deals outside the area. Also, company representatives noted DTE Energy has not acquired any land easements outside this county.
Commissioners were especially interested in the employment opportunities and economic impact DTE Energy’s future developments pose for Huron county.
Wagner said as an industry standard, roughly one technician job is created for every seven to 10 turbines in a wind farm.
Many commissioners were concerned because they believe none of the maintenance jobs created at the area’s two existing wind farms have provided any local jobs. They wanted to make sure more local labor is involved in future wind development projects in Huron county.
“If we’re hosting this … I think our county’s employees should be given a first crack at this (i.e. employment opportunities),” said Commissioner Steve Vaughan.
Wagner said that the first two years a wind farm is in operation, the turbines are under warranty, so many times the turbine manufacturer brings in technicians from out of the area.
But, Wagner noted, that means someone is living in the area for those two years, and after the warranty ends, it’s a good chance local workers could be hired, especially since the area is focusing on having wind technician education programs for students and residents.
DTE Energy representatives estimated roughly 200 jobs will created during the construction phase. And while construction jobs are not temporary, they should last from the time ground is broken for the first project, which is estimated to be in 2011, to the time the third project is created in 2015.
Horny asked if it would be possible for a portion of the wind generated in Huron County to go back to Huron County residents.
“If everybody gets a small portion of it, you’d have everybody on your side,” he said in regard to some in the area who oppose the development of wind projects in Huron county.
Getting either a royalty or some free energy is “something all of us agree should be looked at,” Horny added. “ … But we don’t want to keep you out of here, that’s for sure.”
Vaughan noted the wind “is a natural resource that’s natural to this county.”
The company representatives said having some sort of area-wide benefit is something that would have to be worked out through legislation in Lansing.
Commissioner Chairman Ron Wruble said the board previously looked into having a county surcharge based on the amount of energy generated from projects in Huron County. However, there was pressure from the governor’s office to back away from that idea.
But the board currently is studying the economic impact, i.e. property taxes, revenue from building permits, employment, etc., the two existing area wind farms have had, Wruble said.
Wruble said that the developers and representatives all gave figures as to what the economic impact of those two projects are, but the board feels it may actually have been less, and that’s why this study is being conducted.
“We want a true picture of the impact these facilities have and will have in the future for the county,” Wruble said.