Under the corporate power purchase agreement (PPA), DTE will add 650 MW of new solar energy capacity in Michigan for Ford by 2025. The purchase will be effected through DTE’s MIGreenPower program and is one of the largest renewable energy agreements in the US involving a utility as the supplier. The deal enables Ford to run its manufacturing operations in the state with the equivalent of 100% carbon-free electricity by 2025, 10 years earlier than the company’s global goal.
Launched in 2017, DTE’s MIGreenPower program is now among the top three voluntary renewable energy programs in the US. It’s popularity has spurred a boom in solar PV and wind energy in the state, recording a doubling of enrollment for each of the past three years. In 2021, DTE achieved the state’s 15% renewable portfolio standard (RPS) – and then increased its renewable energy capacity by 40% as a direct result of the growth of the MIGreenPower program. The initiative serves both residential and commercial customers and has numerous industrial energy purchasers. DTE said it plans to double its renewable energy generation by 2025, investing $3 billion in renewable infrastructure in the process.
According to reports by the National Renewable Energy Laboratory (NREL), the voluntary renewable energy market in the US has grown ~20% annually the last few years. The portion of that market served by vertically integrated utilities has grown steadily too, driven by demand coming from residential and commercial customers. The Enerdatics research team recently covered a brief analysis on Ameren Missouri’s 150 MW renewable solutions program, which solicited contracts from large corporations including General Motors, Walmart and Mastercard. Going forward, Enerdatics expects such utility-led renewable energy procurement programs to move to the forefront of the PPA landscape in the US, driven by rising demand from residential and commercial customers.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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