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Opinion | Michigan’s clean energy law is working
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Energy affordability is critical for Michiganders.
Rising electric bills are putting a financial squeeze on households and businesses. How policymakers address this challenge will determine whether Michigan can remain a hub for innovation and manufacturing, or if the state will be left behind.
Unfortunately, some Michigan lawmakers are working to roll back the state’s 2023 Clean Energy and Jobs Act, or CEJA. Proponents of the misguided effort say it would make energy more affordable. In reality, repealing the CEJA would have the opposite effect. Energy costs would grow, there would be increased pressure on the aging power grid and Michigan would be at an economic disadvantage.
Preserving the state’s clean energy ambitions will keep power affordable. The clean energy standard and energy waste reduction targets in CEJA add to Michigan’s electricity grid with the cheapest sources of new power, wind, solar and battery storage. The law also provides guardrails to protect consumers from higher costs.
Despite what some members of the Legislature are saying, clean energy policies are not the source of higher electric bills. In fact, the state’s clean energy policies are helping to address the affordability crisis.
Rising energy costs are being driven by a surge in demand from the rapid expansion of AI-driven data centers and growth in energy-intensive industries like manufacturing. When this growing demand collides with an aging, constrained power grid, it can further contribute to upward pressure on prices.
Rising energy demand can be a positive sign. It means that Michigan’s economy is growing. It also underscores the state’s need for cost-effective, ready-to-deploy energy resources such as wind and solar to meet the moment.
Unlike coal and natural gas, renewable energy has no fuel costs. Once built, wind turbines and solar arrays aren’t vulnerable to the cost swings of volatile international markets. CEJA will help make Michigan energy home-grown and reliable. In turn, Michigan will be better positioned to compete for business investments.
Businesses in Michigan have consistently backed policies to advance clean energy. In 2022 and again in 2023, nearly two dozen leading businesses in Michigan signed letters expressing their support for these policies. Since then, a growing number of major businesses operating in Michigan, including Amrize, New Belgium Brewing, Steelcase and Trane, rely on accessible clean power to meet their own economic goals and the needs of their customers.
Rolling back the CEJA would mean $73 billion in lost GDP for the state by 2050, according to an analysis by 5 Lakes Energy. Michigan would also lose out on half a million jobs, and its consumers would collectively pay $5.6 billion more in electricity costs in the coming decades.
The proposed repeal in the state Legislature also includes the state energy waste reduction target and key efficiency measures that have already saved Michigan households billions of dollars. For each dollar spent on energy efficiency, electricity customers save $4. In Michigan, these programs have saved households and businesses $6 billion since 2009.
Reverting to the energy systems of the past would hurt Michigan’s economy and raise energy costs for Michiganders. At a time when electricity demand is rising and affordability is top of mind, CEJA is helping to control rising energy costs while also strengthening the state’s economy.
Michigan’s path to energy affordability and economic prosperity runs through clean energy, not away from it.
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