Renewable projects likely to continue despite federal funding uncertainty
March 21, 2025
LANSING — Michigan utility providers say they’re moving forward on their projects despite the uncertainty of federal renewable energy funding.
Days before President Trump took office, the US Department of Energy had announced a loan commitment of $5.2 billion to Consumers Energy for renewable investments, battery storage and infrastructure upgrades.
Consumers Energy spokesperson Tracy Wimmer says that any projects already announced by the provider will remain unchanged.
“Obviously we appreciate the federal partnership and the opportunity to use those dollars,” she said. “But I don’t think — regardless of what happens at the national level, you know, our plans are to continue moving forward with the clean energy plan that we announced.”
She says Consumers still plans to use more than 60% renewable fuel sources by 2040, with or without federal dollars.
Dan Scripps, chair of Michigan’s public utility regulator, says that projects set to receive federal funding are unlikely to be abandoned, even if those funds were withheld or revoked.
“But if ultimately, the federal funding were not to come come through, it would just result in Michigan customers paying more,” he said.
Wimmer says any increases to rates due to the federal changes would likely come in at a single digit for most customers.
She says, despite higher up front costs, renewable energy has proven to be cheaper than fossil fuels over time.
“Those costs, in the long term, very much reduce what our customers are going to be paying, because the cheapest energy that exists is the free energy that we can harness,” Wimmer said.
While ongoing projects are likely to move ahead, Charlotte Jameson with the Michigan Environmental Council says the erratic pace of federal policy changes is discouraging new investment in the renewable space.
”Developing renewable sources takes years, and utilities and others need financial certainty,” she said.
Jameson says she’s concerned the policies could remove options for utility providers and Michigan consumers, who would likely be making up the difference.
“If we’re undercutting efforts to build renewables, that means that utilities are going to look at more expensive sources of energy,” she said.
DTE Energy, which provides gas to much of Northern Michigan, was also set to receive a federal loan for line and infrastructure improvements. Those dollars too face an uncertain future.
Search
RECENT PRESS RELEASES
Related Post