Innovation

DTE is Michigan’s largest producer of renewable energy, and they continue to revolutionize their power grid. They plan on adding thousands of megawatts of new clean energy projects, aligning with the following UN SDG's Goals: #7 affordable and clean energy, #9 industry, innovation and infrastructure, and #11 sustainable cities and communities. Jerry Norcia, DTE Energy chairman and chief executive officer claims DTE’s “CleanVision Plan,” a 20-year proposal to transform clean energy production, would invest $9 billion in Michigan's economy over the next 10 years (Matheny, 2022). Alongside the dramatic increase in wind and solar powered energy, DTE plans to reach carbon reducing goals through the retirement of all 17 of their coal-fired power plants—a highly commendable transformation within the energy industry (Noble, 2022).

By 2023, 11 of 17 coal-fired units will be retired and repurposed to capacitate a mix of clean, sustainable energy sources. Our interviewee states, “by being more sustainable now, our kids and grandchildren will have a better future to build off of.” Additionally, DTE acknowledges the importance of consciously pacing themselves with retiring their coal plants, to not only maintain reliable and affordable energy for 2.3 million customers, but to ease their employees through this transition (Noble, 2022).

Alongside DTE's CleanVision Plan, the company has promised to collaborate with union leadership on developing retraining programs and an employee transition strategy committed to keeping all their workers employed (Noble, 2022).

Inspiration

As society brainstorms solutions for our current climate crisis, the teams at DTE Energy have looked inward to make a difference in the fight against climate change. With its thousands of employees supplying fuel and energy to millions of consumers, DTE undoubtedly understands their impact. As the energy company has project outlines like CleanVision and MIGreenPower in its Integrated Resource Plan (a road map of resources and strategies to generate reliable and affordable power for its customers over the next 20 years), it started with a reflection on its own energy efficiency (EE) ("Michigan Communities”, 2021).

DTE’s EE Portfolio, launched in 2009, was an innovation resulting from the Clean, Renewable, and Efficient Energy Act. It comprised DTE’s many specific residential, commercial, and industrial programs, education and awareness, and Pilot programs. On top of completing the states’ mandated task, DTE has continuously enhanced and launched innovative programs into successive EE Portfolios. These efforts help communities grow more robust and provide customers with tips and tools to help save money on their energy bills (“About Us,” 2022).

While DTE provides renewable energy to businesses like Ford and General Motors, they are passionate about removing the barriers to clean energy for small business and residential customers too. "Across the country and here in Michigan, the energy landscape is changing rapidly and fundamentally,” said Norcia (Matheny, 2022). DTE wants all their customers to be able to reduce their carbon footprint without having the burden of upfront costs that come with installing your own equipment.

Overall impact

As DTE Energy redefines the landscape of clean and renewable energy for south-east Michigan, it provides a trifecta of benefits to Michigan’s economy, residents, and environment. During this era of sustainable innovations, DTE’s long-term impacts reveal these changes are projected to invest $9M into Michigan’s economy and secure over 25 thousand new jobs. In guiding and uplifting Michigan's economy, DTE remains a model of integrity and leadership while transitioning.

Through the proposed IRP, affordable and reliable energy with zero-emission technologies increases energy independence in the United States, provides jobs, and reduces greenhouse gases. Furthermore, the conversion of coal powered plants (CPPs) into alternative energy sources would include the benefits of sustainable energy security and higher energy storage. By the same token, DTE has invested considerable efforts, time, and funds into the transformation of the industry to ensure its success—not just for the business, but for the future of its customers and employees alike.

During this transition period at DTE Energy, the company strives to maintain their high standards for operational safety, security, and emergency preparedness. This approach to operations upholds honest transparency, a vital component needed to maintain public trust. The International Atomic Energy Agency stated in 2016, "nuclear power plants are among the safest and most secure facilities in the world." Patel, an internal auditor for the FERMI II plant, ensures proper operations alongside third-party auditors, like the Michigan Public Service Commission. These comprehensive safety procedures and strong federal regulations ensure employees and communities remain safe.

Business benefit

DTE Energy reports current company revenue in 2021 is $15.36 billion, an increase over the 2020 revenue of $12.17 billion (Companies Market Gap). Correlating with the 2021 Annual Energy Report, over 31% of all energy produced was clean energy versus 28% from 2020. This rise in revenue and change in fuel mix shows that DTE Energy’s pursuit to meet customer needs while obtaining clean energy. Correlating to the 2019 Integrated Resource Plan and plan to partner with private organizations, corporations like Ford and GM have made commitments to obtain 500,000 MW and 300,000 MW of wind energy respectively to power their manufacturing sites. The benefits include increased revenue, more investment for sustainability, and improved product understanding.

In their latest 2021 Annual Energy Portfolio, DTE Energy invested $181.1 million into their clean energy infrastructure. They have been able to reduce the cost to implement their CleanVision Plan by $1.4 billion through charging residents with a monthly bill increase of 50 cents.

Through current investment, DTE Electric achieved a Utility System Resource Cost Test (USRCT) ratio of 1.88, which is well above the requirement of 1.0. The USRCT is a measure of energy savings for its consumers and company by specifically measuring if the company’s investment exceeds its cost (“2021 Annual Report”, 2021). This shows how they are dedicated to producing high quality energy at affordable costs.

As part of their efforts to include more electrical users, DTE Energy introduced a new program called MIGreenPower in 2017 to increase consumer perception in clean energy sources and inspire the next generation to become more sustainable. Consumers could contribute up to 100% to clean energy for a small fee (Noble, 2022). Through this program, DTE Energy can involve more consumers into sustainability energy, increase the volume of their consumer base, and earn more revenue/profit.

For long-term growth, they have promised employees opportunities to transfer to other positions or facilities within their company to avoid losing employment. They expect that over 25,000 new jobs will be created alongside their investment in clean energy, $9 billion investment into the Michigan economy in 2022 (alongside an additional $8 billion investment announced in 2021), and creating new solar and wind assets (Noble, 2022).

Social and environmental benefit

In 2018, coal accounted for 65% of DTE’s fuel mix. However, DTE hopes to reduce coal usage by 40% and carbon emissions by 50% in 2030 and 80% in 2040 (”2019 Integrated Resource”, 2019). According to Rhodes (2018), environmental impacts of nuclear/clean energy plants over CPPs are that atomic energy releases less radiation into the environment, utilizing nuclear fission (or the splitting of atoms in a nucleus) to generate electricity without carbon emissions. CPPs utilize chemical burning which creates carbon emissions. Second, clean energy plants produce more energy compared to CPPs and it is easier to dispose of nuclear waste in underground concrete facilities. Nuclear energy plants produce twice as much electricity as coal power plants. In addition, nuclear energy plants are safer than CPPs meaning a catastrophic incident would cause less damage than other energy sources.

Patel stated that “CPPs have been repurposed into viable economic contributors where DTE Energy has invested $9 billion into clean energy infrastructure, supporting the development of 25,000 new jobs, and adding 15,000 megawatts to the energy grid”, allowing Michigan to rely on their own independent grid. It will save consumers over $1.4 billion per year in electricity costs. Next, according to the 2022 US Energy & Employment Jobs Report, due to the increased sustainability investment, Michigan was the top state with the highest energy growth numbers, gaining 35,463 jobs, including 5,136 jobs dedicated to producing low or zero-carbon vehicles. Finally, DTE worked with union leaderships to create retraining and transitioning programs, committing to no employee layoffs. Finally, programs like MIGreenPower allow voluntarily consumer participation in clean energy programs for a small fee (Matheny, 2022).

Interview

Chirag Patel, Nuclear Quality Assurance Auditor