A bill proposed in the Michigan legislature would guarantee a return on investments in renewable energy for at least 20 years.
The Renewable Energy Sources Act (HB 5218), introduced by Representative Kathleen Law in 2007, is receiving more attention of late, since the state created a 10% renewable portfolio standard in October.
The act would guarantee long-term, fixed prices for electricity generated from renewable sources, according to Michigan Policy Network. This would allow renewable energy developers to negotiate lower financing costs for their projects.
Utilities would be required to enter into contracts lasting no less than 20 years to purchase electricity from renewable energy projects. Purchase prices would be updated every two years by the Public Service Commission to ensure profitability between 10 and 30%.
In addition, utilities would be required to connect eligible renewable power sources to their power grids within 60 days of receiving a request.
Here’s the full report.
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