Consumers Energy's purchase of 16 MW of solar just the beginning for its massive solar plans in Michigan

Pine Gate Renewables' recent sale of eight solar projects totaling 16 MW to Consumers Energy is just the start of the Michigan-based utility's plans for adding to its solar portfolio in the state.

It’s a modest amount, by some measures, but it more-than-doubles CE’s solar holdings, according to spokesman Terry DeDoes, providing a glimpse of where the utility is planning to go.

“We are focusing heavily on solar projects to fulfill our Clean Energy Plan goals, which call for eliminating coal as an energy source, achieving net-zero carbon emissions and meeting 90% of customers’ energy needs through clean sources like renewable energy, energy waste reduction and energy storage,” DeDoes said in an interview with NPM.

Talks around purchasing the generated power from Pine Gate date back to December 2019, DeDoes said.

Before the deal with Pine Gate, Consumers’ Energy had only 10 MW of solar in its portfolio. The company also added an additional 150 MW of wind capacity to its holdings with the addition of Gratiot Farms Wind Project.

“Combined with Cross Winds Energy Park and Lake Winds Energy Park, two other wind projects we own and operate, our wind parks produce enough power to serve about 185,600 residents,” DeDoes said.

Just 11% of the company’s capacity currently comes from renewable sources. That’s set to change drastically over the next decade.

“In the longer term, we have goals of going from about 11% renewable energy that we currently supply to customers up to 42% in 2030,” DeDoes said.

The plan is to get there with solar.

“In fact, (Clean Energy Plan) calls for adding 6,000 megawatts of solar energy to our system by 2040,” DeDoes said. “Solar energy is affordable and has the benefit of quite often being abundant on calm, sunny summer days when customer demand for power is high.”

There are also plans for 550 MW of new wind capacity. New solar assets will be a mix of owned assets and power purchases. The development of all this new capacity will be ramped up to meet the planned closures of coal-fired generating assets and expiring power purchase agreements, the company said.

Two coal-fired generating units, Karn 1 and Karn 2, are set to be retired in 2023, eight years before the end of their designed lifespans, the company said. Campbell 1 and Campbell 2, as well as Karn 3 and Karn 4, the two of which are powered by gas and “fuel oil” and used to meet peak demand, are all set to be retired in 2031. Campbell 3 is set to be retired by 2040.

These closures and additions will allow Consumers Energy to be 56% renewable and have net zero carbon emissions by 2040, the company said.