Detroit-based DTE Energy has announced plans to shut down its entire coal power plant fleet by 2040, in an effort to curb carbon emission by over 80% from 2005 levels by 2050. The utility will invest to build 3,500 MW of new gas-fired capacity to supply 24/7 power and an additional 6,000 MW of renewable energy capacity.
The new wind and solar power installations are meant to supply enough electricity for nearly 2 million homes, supplementing the 1,000 MW renewable capacity DTE has built since 2009. The flexible gas plants will provide a flexible backup power source. With this strategy, DTE aims to produce over three-quarters of its power from renewables and gas.
“We have concluded that not only is the 80 percent reduction goal achievable – it is achievable in a way that keeps Michigan's power affordable and reliable," DTE's chairman and chief executive officer, Gerry Anderson, said in a statement.
Continuous coal power phase-out
Retirement of DTE’s aging coal-fired plants is a “steady process”, which continued in 2016 with the announced shutdown of 11 coal units by the early 2020s.
Previously, DTE retired three of its coal-fired power plants – the Marysville, Harbor Beach and Conners Creek plants. In 2016, three additional coal-fired generating units at plants also were removed from service. This process of retiring coal-fired power capacity will continue with the retirement of the River Rouge, Trenton Channel and St. Clair power plants in the early 2020s.
Gradual shift towards clean gas and renewables
DTE has a gradual approach to curb emission and seeks a 30% reduction by the early 2020s, 45% by 2030, followed by 75% by 2040 and more than 80% by 2050. The company said it will achieve these reductions by incorporating substantially more renewable energy, transitioning its 24/7 power sources from coal to natural gas, continuing to operate its zero-emission Fermi 2 power plant, and strengthening options for customers to save energy.
Since 2009, DTE has spearheaded more than $2 billion of investment in wind and solar resources. The solar project DTE recently completed in Lapeer, Mich., is among the largest solar fields east of the Mississippi River.
To ensure reliable energy supply, DTE plans to spend $5 billion over the next five years to modernize the electric grid and gas infrastructure. Moreover, the utility said it will continue to invest in energy efficiency and energy waste reduction.
"The transformation of the way we produce power is in full swing," said Anderson. "Like all big transformations, this one won't happen overnight. It needs to be planned carefully and will entail big investments, but that can absolutely be done."