Monday, April 8, 2024
Recently, the Michigan Public Service Commission (MPSC) declined Consumers Energy’s proposals to terminate contracts early and shut down two biomass power facilities in Cadillac and Lincoln, Michigan. Consumers Energy had intended to close these wood-fired plants by the end of May 2024, although their contracts were scheduled to expire in 2027 and 2028. Consumers Energy was seeking to replace the plants with two solar projects, claiming the two biomass plants were too expensive for consumers and unprofitable.
The MPSC concluded that terminating the contracts prematurely failed to account for Michigan’s wider electricity capacity requirements and could pose a risk during times of high demand or limited supply. Furthermore, the regulators suggested that the projected cost savings for ratepayers might have been exaggerated. Cadillac Renewable Energy operates a 38 MW facility, and National Energy of Lincoln has an 18 MW plant.
“The loss of our biomass power stations will result in an increased reliance on volatile and unpredictable energy resources,” Knepper said. “Members of the Michigan Association of Timbermen work hard each and every day to ensure that our biomass power stations are supplied with sustainably harvested wood residuals that provide clean, renewable energy.” Knepper added further.
Timber industry officials in the region have long supported the plants as sources of renewable electricity and for providing key markets for forest residuals. Justin Knepper, executive director of the loggers group Michigan Assn. of Timbermen, welcomed the MPSC’s decision.
Read more news on: Wood & Biomass
Tags: biomass, biomass power plant, wood and panel, woodworking industry, woodworking USA
