Wind Power in MichiganMoving Michigan Forward

Increasing social welfare

Summary: Identify the problem

Wind Power

Solution

Proposal• Clean Energy Industry in Michigan• Offshore Wind Power

• Information from the Michigan Great Lakes Wind Council

• Specific areas that promise the best results, avoiding scenic areas, taking into account citizen’s preferences, framework for collecting payments and such as included in their final report.

Best areasBased on wind concentration.

Why this is the best choice for Michigan

Justification

8 Reasons Michigan is the best choice:1. Michigan is one of eight states and two provinces with Great Lakes

regions under their control.Michigan alone has, within its jurisdiction, approximately 40% of the Great Lakes water surface area.

2. Much of the Great Lakes bottomland that is within the jurisdiction of Michigan is essentially owned and operated by the state, in trust for the public (Illinois Central Railway Commission v. Illinois, 1892).

3. The degree of difficulty in implementing wind projects offshore in the Great Lakes is significantly less than in ocean or saltwater applications.

4. Project implementation costs for Great Lakes application will likely be lower than in marine applications.

5. State marine coastal management zones only extend 18 miles, while Great Lakes states zones are not subject to such restrictions.

6. Saltwater is much more corrosive than freshwater, making salt water offshore projects less durable.

7. Ocean floor topography makes it difficult to address viewshed issues, as ocean based projects involve greater depths closer to shore.

Why this is the right choice for Michigan:Michigan has recently passed a Renewable Portfolio Standard which mandates that 10% of Michigan's electricity needs come from renewable sources by 2015 and 25% by 2025. A 10% by 2015 RPS would generate a demand for approximately 1,250 new wind turbines over the next seven years. Michigan is very well endowed in offshore wind resources; the total offshore power potential at the maximum depth (that is, if the technology is tested and developed to make power production at maximum depth feasible, testing is currently in progress) is estimated to be 321,936 Mw. This is almost 20 times the estimated power production possible on shore. At a maximum depth of 60m, offshore power production is estimated at 102,592Mw, this is a depth that is completely feasible and has been done elsewhere. Michigan consumes 101,018,000 MW of retail electricity (12,331Mw of continuous generating capacity) and currently is capable of 30,189 Mw at peak times. Michigan is uniquely advantaged in offshore power production for eight specific reasons:

Wind Production Areas

Target Area and Real Output

Wind Production Areas (WPAs)

• Southern Lake Michigan near Berrien County • Northern Lake Michigan near Delta �

County • Central Lake Superior near Alger �

County • Central Lake Huron (out from �

Saginaw Bay) • Southern Lake Huron near Sanilac �

County

Citizen’s Preferences:

Preference for Offshore Wind Turbines Located Six Miles from Shore:

•

Real Output

The rent for the leased land is recommended at $3 per acre per year and it is suggested that there are royalties at no less than 3% of the gross revenue of the project per year. The Michigan Great Lakes Wind Council identified 13,339 square miles of area classified as “most favorable”. Given that 1 square mile = 640 acres; simply leasing out the land classified as most favorable to begin the project will result in (13,339 x 640 = 8,536,960 x $3 = $25,610,880) $25,610,880 in revenue from rents.