Renewable Energy
Welcome to the City of Grand Rapids’ Renewable Energy website containing information about the City’s efforts in the area of Renewable Energy.

WHAT IS RENEWABLE ENERGY?

Renewable Energy is derived from resources that are regenerative or, for all practical purposes, cannot be depleted. Types of renewable energy resources include moving water (hydro, tidal and wave power), thermal gradients in ocean water, biomass, geothermal energy, solar energy, and wind energy. Municipal solid waste (MSW) converted into a landfill gas is also considered to be a renewable energy resource.

For this reason, renewable energy sources are fundamentally different from fossil fuels, as they do not produce as many greenhouse gases and other pollutants as fossil fuel combustion. Traditional uses of wind, water, and solar energy are widespread in developed and developing countries; but the mass production of electricity using renewable energy sources has become more commonplace recently, reflecting the major threats of climate change, exhaustion of fossil fuels, and the environmental, social and political risks of fossil fuels.

Seeking ways to increase the Renewable Energy resources is a world wide trend. Many countries in the world have taken advantage of the natural resources in production of renewable energy.

HISTORY OF CITY OF GRAND RAPIDS’ COMMITMENT TO RENEWABLE ENERGY

In his State of the City address on January 25, 2005, Mayor George Heartwell focused on renewable-resource energy. Due to concerns about pollution resulting from the consumption of electricity, Mayor Heartwell explained that increasing the municipal use of green energy is one of his top goals. Environmental and long-term sustainability concerns, led to the announcement of his initiative aimed at reducing the City’s dependency on non-renewable resource power by 20% by the end of 2008. Renewable energy has proven to be an important and rapidly growing segment of the energy industry, worldwide and across the nation. This 20% goal would be based on a triple bottom line of economic, social and environmental sustainability.

The following renewable resources were considered to be of specific interest:

• Wind – there are several areas in Michigan with potential for wind energy.

• Methane gas, biosolids

• Solar

An informal staff group had been working on this issue for some time, prior to the formation of a Renewable Energy Team early in 2005.

THE PRESENT

Most electricity produced today in Michigan comes from coal-burning power plants. Trainloads of coal flow into Michigan from out-of-state providers. Michigan utility customers send trainloads of money out of state to pay for the coal, and we keep the pollution.

Burning coal is a relatively inexpensive way to generate electricity, but consumers and businesses don't directly bear the true hidden social cost of the pollution caused by coal-fired power plants. (The hidden social cost includes health care and environmental effects of coal pollutants.) Although the typical cost to consumers for coal- electricity is about 10 cents/kilowatt-hour, research has shown that the true social cost of coal-electricity is as high as 23 cents/ kilowatt-hour.

Electricity generated from commercial-scale wind turbines is cost- competitive with coal-electricity today. Electricity generated from solar systems is more expensive than coal-electricity. Renewable-electricity (generated from wind, solar, or geothermal sources, for example) does not carry hidden CO2 emissions and the social costs of coal-electricity. Although you may pay more initially for renewable-electricity, it is actually less expensive to the society as a whole.

THE FUTURE

In the future, coal-electricity will play a smaller role; and, renewable-electricity will become increasingly important.

First, coal-electricity will become more expensive. Worldwide demand for coal is exploding as China, India, and other countries become increasingly industrialized. Coal prices increase as coal demand increases and coal supplies are consumed. As coal prices rise, the cost of coal-electricity also increases.

President Obama supports a cap-and-trade market for CO2 emissions. Implementing a cap-and-trade system in the U.S. will increase the cost of coal- electricity for everyone (bringing it closer to the true social cost) while simultaneously encouraging the development of new sources of renewable-electricity. Europe's mandatory cap-and-trade markets increase the cost of coal-electricity by 4 cents/kilowatt-hour and have led to European leadership in the world's wind and solar technologies.

Second, in 2008, Michigan became the 28th state to adopt a renewable portfolio standard (RPS). Michigan's RPS mandates that in-state utilities generate 10% of Michigan's electricity using renewable sources by the year 2015. Although Michigan's RPS is lower than other states, the RPS will catalyze the development of renewable energy technology, ultimately reducing the cost of renewable- electricity as economies of scale are achieved.

In time, as the cost to consumers of coal-electricity approaches its true social cost and as economies of scale reduce the cost of renewable-electricity, renewable-electricity will become the least expensive option.

WHAT THIS MEANS FOR GRAND RAPIDS

The State of Michigan may emerge as a leader in renewable energy technologies due to our unparalleled manufacturing capabilities and our new renewable portfolio standard. Renewable energy technologies can become a source for new, high-skilled jobs in the West Michigan area.

The City of Grand Rapids is already a renewable-electricity leader in the State of Michigan and around the country. The City achieved Mayor Heartwell's goal of achieving 20% municipal renewable-electricity by December 31, 2008. (Increases in municipal energy efficiency helped to offset the increased direct cost of purchasing renewable-electricity.)

Mayor Heartwell has set an ambitious new goal of 100% municipal renewable-electricity by the end of 2020. The City’s Renewable Energy Team is investigating many options for a cost-effective means of achieving this goal, including municipal wind generating capacity, solar energy technology, and/or developing partnerships with others. By creating favorable conditions for renewable energy technology innovation in West Michigan, the City of Grand Rapids will continue to lead by example in these economically important areas.

For more information contact: Haris Alibašić, Administrative Analyst II, at halibasic@grcity.us.

IN THE NEWS

GR Responds to Questions raised at Grand Haven Township Public Forum.  View response.

GR continues with turbine request without grant.  Grand Haven Tribune, 2/3/10.  Read more . . .

City of Grand Rapids Moves Forward with Proposal for Wind Turbines on Lakeshore.  Michigan Public Radio, 2/3/10.  Read more . . .

Grand Rapids denied federal grant for Lakeshore wind turbine, but plans move forward, Grand Rapids Press, 2/3/10.  Read more . . .

GR wants to erect wind turbines at water plant in GHT, Grand Haven Tribune, 9/29/09. Read more . . .