DTE Energy Company (DTE - Free Report) has recently upgraded its MIGreenPower voluntary renewables plan, which includes bringing online an additional 420 megawatts (MW) of solar energy by 2022. The company has submitted this revised proposal with the Michigan Public Service Commission (MPSC).
Per the updated plan, the new solar assets will source clean energy purchases from corporate, municipal and industrial customers participating in the company’s MIGreenPower program.
How Pivotal Will the MPSC Approval be?
On approval of the updated plan by MPSC, the company would increase its solar generation capacity by nearly ten times over the next two years. Interestingly, by 2022, DTE Energy’s wind and solar energy portfolio would generate enough clean energy to power 900,000 homes.
Its clean energy generation will further offset approximately 4.7 million tons of CO2e as the company is delivering on its commitment to reduce carbon emissions and meet customer demand for more renewable energy,
DTE Energy & Renewables
DTE Energy has been investing steadily to enhance its renewable generation assets. Over the next 15 years, DTE Electric plans to withdraw a portion of its coal-fired generation and boost the natural gas-fired generation and renewables mix.
In March 2018, DTE Electric filed its 2018 Renewable Energy Plan with the MPSC proposing approximately 1,000 additional megawatts of energy from new wind and solar projects to be completed by 2022.
In April 2020, DTE Energy partnered with General Motors (GM - Free Report) on renewable energy investment, for delivering enough clean energy to General Motors’ Southeast Michigan facilities by 2023.
Moreover, during the second quarter, the company commissioned the largest wind park in Michigan. The Polaris Wind park, which has 68 turbines and can power 64,000 homes, is a significant step toward the company's goal of reducing carbon emissions by 50% by 2030.
Utilities’ Adoption of Renewable Energy
To mitigate the deadly effects of climate change, in the United States, utilities are increasingly adopting renewable energy sources to produce electricity, with wind and solar energy gaining popularity, in particular. Per the latest forecast made by the U.S. Energy Information Administration (EIA), electricity generation from renewable energy sources is expected to rise from 17% in 2019 to 20% in 2020 and 22% in 2021, primarily driven by projected additions to wind and solar generating capacity.
To this end, it is imperative to mention that DTE Energy currently has 15 wind parks and 31 solar farms in its generation portfolio, which are capable of producing enough clean energy to power more than 500,000 homes. It further plans to add three more wind parks to its portfolio by the end of 2020. Looking ahead, DTE Energy is committed to achieving its net-zero carbon emission target by 2050.
Notably, other utilities, like Xcel Energy (XEL - Free Report) , aim to achieve 80% carbon reduction by 2030 and 100% carbon-free electricity by 2050. Likewise, American Electric Power (AEP - Free Report) aims at reducing carbon dioxide emissions by 80% by 2050.
Price Performance & Zacks Rank
Shares of this Zacks Rank #3 (Hold) company have gained 4.3% in the past six months against the industry’s 14.7% decline. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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