INSIDE: - ESD

Per capita energy use in Michigan is 313 million BTUs and the EPA has set a goal of 230.5million BTUs per capita energy use by 2012, requiring a reduction of more than 25%.technology development and protection, research anddevelopment and education opportunities in three differentand linked although disparate time frames: Now, Newand Next. The common goal for all is to build a consensusfor Michigan becoming a world leader in Clean Energythrough the identification of new ideas that may be appropriatelyand effectively implemented to solve problemsand enhance our global competitiveness. As a suggestivesummary, we wish to challenge interested stakeholders toengage in how unknown answers for today and tomorrowmay be developed, shared, protected, and enhanced for thebenefit of Michigan and our planet.BACKGROUND—MICHIGAN’S ENERGY PICTUREMichigan has long been very proactive in the field ofenergy research and development, technology implementation,and improved methods. The industrial economyof Michigan has resulted in a fairly conservative and costeffectiveapproach to utility generation and distribution.For electricity generation, the state depends on coal for53.6% of the generated electricity, 25.3% is provided bynuclear, 10.1% by natural gas, and 4.1% from fuel oil.Michigan is currently 10th in the nation in total BTU usewith 3.2 trillion BTU, while growth in energy use is 44thin the nation.Currently less than 4% of the electricity generatedis from renewable resources, resulting in significantchallenges over the next decade. Michigan GovernorJennifer Granholm’s focused effort to limit electricityfrom coal and promote more renewable energy willchallenge cost-effective generation goals since coal hashistorically been the most cost-effective source withinthe state. To meet future electrical growth demand, theGovernor signed renewable legislation mandating thatby 2015 10% of the state’s electricity will come fromrenewables. The driving force behind the regulation isthe need to reduce the emissions of CO 2on a global basis.On the demand side, world energy demand growth isforecasted to continue to grow over the next 20 years.By some estimates, 40% more energy will be neededglobally and 80% more in the developing world. The 21stCentury Energy Plan Study issued by the Michigan PublicService Commission estimated an annual state electricitygrowth rate of 1.2%. While recent growth rates have notmaterialized due to a downturn in the economy, the statewill need to diversify fuel sources in the future to reduceCO 2emissions.Michigan’s opportunity for application of renewablesis primarily with wind and biomass as it is ranked 14thin the country for wind power potential, while it iscurrently 25th in actual production. Michigan ranks 22ndin the potential to use biomass. The Anderson EconomicGroup recently completed a study for the UniversityResearch Corridor (Michigan State University, Universityof Michigan, and Wayne State University) and reportedthat Michigan has the potential to supply up to 60% of itspower needs through alternative fuels.NOW: DEALING WITH ENERGY EFFICIENCYThe U.S. Green Building Council (USGBC) reports thatbuildings account for 39% of CO 2emissions in the UnitedStates and will be the fastest growing source of CO 2overthe next 25 years. Additionally, buildings account for70% of the electricity usage in the United States. Froma cost standpoint, buildings consumed 40 quadrillionBTUs in 2005 at a cost of $300 billion. To effectively dealwith future energy strategies will require that buildingsbecome a priority and an effective energy efficiency planbe developed. The EPA Energy Star Program has demonstratedthat businesses are reducing their energy useby 30% or more through effective energy management,assessment, goals, and benchmarking. Michigan has 555registered EPA Energy Star Partners, including manufacturing,commercial, academia, and hospitals.Per capita energy use in Michigan is 313 million BTUsand the EPA has set a goal of 230.5 million BTUs percapita energy use by 2012, requiring a reduction of morethan 25%. It has been estimated that in Michigan a 15%reduction in electricity demand over the projected demandin the next 15 years will result in a $690 billion savings.NEW: DEALING WITH THE STATE’S ENERGY RULEGovernor Granholm signed into law HB 213, whichestablished renewable energy standards for the State ofMichigan. Critical elements of the legislation include thefollowing:••10% of electricity generated by renewables••5.5% electricity demand reduction by 2015 (Incrementalreduction each year)••25% of electricity generated by renewables••25% reduction of electrical grid requirements forgovernment facilities••Incremental Natural Gas reduction each yearThe enablers to be put in place to address the elementsinclude:••Use of Energy Star and LEED equipment and guidelines••Energy Star ratings for government buildings••Development of Energy Optimization Plan for all userclasses18 | Technology Century | AUGUST–SEPTEMBER 2009