Michigan’s Shaky Shift to Alternative Energy Sources

Amid Michigan’s energy transition, there are increasing concerns about the reliability of its future power supply. As highlighted in the 2023 Regional Resource Assessment by the Midcontinent Independent Systems Operator (MISO), there appears to be a significant gap between available energy capacity and projected demand across both Upper and Lower Peninsulas of Michigan.

Even with conservative estimates, Michigan’s current energy supply falls short of expected demand levels. This mismatch, compounded by the state’s fixed pricing mechanisms, could lead to shortages and potential blackouts.

One of the key concerns cited is the increasing reliance on less predictable energy sources at the expense of more dependable ones. The energy sector’s move towards replacing controllable, dispatchable resources with weather-dependent and variable generation types is primarily driven by goals to reduce carbon emissions. However, this transition raises reliability issues, as highlighted by senior MISO representatives during a recent hearing before the U.S. House Subcommittee on Energy, Climate, and Grid Security. 

MISO identifies specific attributes crucial for maintaining grid reliability, such as rapid startup capability, efficient output adjustment, and sustained high-volume electricity generation. “Historically, conventional resources like coal and natural gas have excelled in these areas but are being phased out in favor of renewables that are less reliable and highly dependent on uncontrollable weather conditions,” explains MPGA’s Executive Director, Derek Dalling.

According to MISO’s assessment, the ongoing trend of retiring traditional power plants without adequate replacements poses significant reliability risks for the region. Despite efforts by state regulators and utilities to transition to wind and solar power, the limitations of these alternatives in meeting Michigan’s energy needs remain a pressing concern.

The possibility of importing electricity from neighboring states to offset shortages appears slim as surrounding states grapple with similar challenges. By 2027, each state in the Great Lakes region is projected to confront its unique energy supply difficulties.

Amid these developments, the Mackinac Center’s forthcoming report aims to provide a deeper analysis of these potential risks and their implications for Michigan’s energy grid. It underscores the need for cautious reassessment to safeguard grid stability and ensure the safety of residents in the Great Lakes region amidst the ongoing energy transition.