Ford and DTE PPA to Accelerate Michigan's Solar Generation

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Researched by Industrial Info Resources (Sugar Land, Texas)--Ford Motor Company (NYSE:F) and DTE Energy Company (NYSE:DTE) (Detroit, Michigan) last week announced a power purchase agreement (PPA) to add 650 megawatts (MW) of solar power for Ford in Michigan by 2025, which would increase the state's amount of installed solar power by about 70%, according to data from the Solar Energy Industries Association (SEIA). Industrial Info is tracking $2.7 billion worth of solar projects in Michigan that have a high and medium probability (70-99%) of moving forward as planned.

Michigan Governor Gretchen Whitmer applauded the deal, saying: "I want to congratulate DTE Energy and Ford Motor Company for taking this significant step to increase our state's solar energy production and to position Michigan as a leader in climate action," adding, "Efforts like this are the reason Michigan had the best job growth for energy-sector jobs in the country last year, which will help to advance our state's decarbonization goals, create good-paying jobs and strengthen our economy."

The state seeks to reach its carbon-neutral goal by 2050, and reduce greenhouse gas emissions to 28% below 2005 levels by 2025, and 52% by 2030, according to the state's MI Healthy Climate Plan--which also notes DTE plans to have at least 10 million solar panels in its generation mix by 2040.

DTE and another Michigan utility, CMS Energy Corporation (NYSE:CMS), both are planning to close coal-fired plants as they work with the state to eliminate coal from the state's energy mix. For more information, see Industrial Info's May 13, 2022, article - CMS, DTE Accelerate Coal Closures as Michigan Goes Greener.

According to SEIA data through first-quarter 2022, Michigan ranks 24th in the nation with 927 MW of installed solar power (down from 14th in 2021). This accounts for less than 1% of the state's electricity, but the trade group is projecting the state will add 2,290 MW of solar power over the next five years.

Among the solar projects in Michigan are two grassroot plants from Invenergy LLC (Chicago, Illinois). The $250 million Calhoun Solar Center Plant will utilize photovoltaic (PV) solar panels from First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona) to generate 200 MW. The project is expected to wrap up later this month. The 150-MW Mustang Mile Solar Project in Lenawee County is expected to kick off in October, with completion in June 2023. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can see detailed reports on the Calhoun and Mustang Mile projects.

On a smaller scale, AES Corporation (NYSE:AES) (Arlington, Virginia) expects to bring its 15-MW Letts Creek PV Solar Plant online later this year. Click here for the project report.

The highest-valued solar project in Michigan is Ranger Power's (Chicago, Illinois) 150-MW, $450 million Confluence PV Solar Farm in Genesee County. Construction is expected to kick off in mid-2023, with completion in late 2024.

Subscribers can click here for the reports on all of the projects discussed in this article and here for the related plant profiles.

Click here for a full list of solar projects in Michigan that have a high and medium probability (70-99%) of moving forward as planned.

Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.