DTE Unveils $2 Billion Plan to Boost Renewables, Retire Coal and Slash Emissions by 2040

DTE Electric Company submitted its 2019 integrated resource plan to the Michigan Public Service Commission on March 29, outlining the company’s strategy for the next 20 years. The plan focuses on a transition from coal to renewables, boosting energy efficiency and accelerating carbon emission reductions.

The utility’s plan calls for about $2 billion to be invested in renewable energy by 2024, effectively doubling its clean generation over the next five years. This will include the addition of about 700 megawatts of wind capacity and 11 megawatts of solar plus storage pilot projects. The company also plans to expand its voluntary green pricing program, tailored for customers who choose to meet a portion of their electricity needs from renewable energy. Under the expanded voluntary program, DTE seeks to add between 465 and 717 megawatts of renewable generation depending on subscription levels. The bulk of solar capacity additions are set to come later, as the utility prioritizes wind development. DTE expects to add 525 megawatts of solar between 2025 and 2030, with another 2000 megawatts by 2040.

As for emission reductions, the company is ramping up the pace with a new target of at least 50 percent lower emissions by 2030 and 80 percent by 2040, up from the previous target of 45 percent by 2030. In order to achieve this, DTE is accelerating the retirement of its aging coal fleet, with plans to close its St. Clair and Trenton Channel power plants in 2022, one year ahead of schedule, totaling about 2.5 gigawatts of coal generation that will have to be replaced. The company also expects to retire its Belle River units 1 and 2 by 2029 and 2030 respectively but says the decision, along with the retirement of its remaining Monroe plant, will be reevaluated in the next integrated resource plan. In addition, DTE also admits the possibility of natural gas combined cycle additions totaling 414 megawatts sometime in 2030.

As part of the integrated resource plan, DTE wants to boost demand response programs to 859 megawatts by 2024, in combination with voltage reduction and volt-var optimization pilot programs to be implemented by 2020.

Finally, the company is also planning an $800 million upgrade to the Ludington pumped storage facility, co-owned by DTE and Consumers Energy, which will support the transition to intermittent renewable sources. The project is set to be completed in 2020.

Michigan law requires utilities to file integrated resource plans every five years, which are then reviewed by state regulators. The company’s current application is split into two, a plan for 2020-2024 and another, less defined plan for 2025-2035, which can be approved separately. DTE Electric is a wholly-owned subsidiary of DTE Energy.