Is Michigan thirsty for our green juice? And is that a good thing?

A proposal to feed the Sault's electricity to Michigan could prove to be more attractive to local renewable energy producers than sending it to southern Ontario, said Tom Vair, executive director of the Sault Ste. Marie Innovation Centre (SSMIC).

Vair said the prospect of northern Michigan tapping into the Sault’s power grid has come up in the past, but didn’t make sense at the time.

“Times are changing and the landscape for energy in Michigan is changing. It may be an opportunity to look at it again and see if the infrastructure can be upgraded in a way that makes sense for them and for us here in Ontario,” said Vair.

Michigan Governor Rick Snyder recently called for a feasibility study to be done by Midcontinent Independent System Operator (MISO) — the regional transmission operator for most of the state — to find production cost savings and increased reliability of electricity transmission.

“Since Michigan has some of the highest prices for transmission in the MISO footprint, it makes sense to ask whether, in the long term, we can all spend less while increasing reliability by strengthening our ties to each other and our neighbours,” said Snyder in a news release from the Michigan Agency for Energy (MAE).

The reliability of the electricity system in the province worsened between 2010 and 2015 and is at “very high risk of failing.”, nowhere more so than in Northern Ontario, said a 2015 study by Bonnie Lysyk, Ontario’s auditor general.

Lysyk said Ontarians were paying too much for power, while the province is not charging enough to export its surplus electricity and in some instances between 2009 and 2014, where too much power was being produced, the province paid exporters more than $32-million to take our surplus Ontario power. 

Vair said dumping excess power is a concern, but he hopes the province will establish a stable off-take agreement with the state of Michigan should

“If they have a stable agreement in place, then they can plan for it and build something beneficial for Ontario,” said Vair.

The aging transmission system has stunted the growth of renewable energy projects in northern Ontario, said Vair.

“I know one of the issues we had in terms of adding additional renewable energy projects on to the grid has been the strain on the transmission lines of us down to southern Ontario. If this [Michigan proposal] were to take place, it could mean there is an opportunity to increase renewable energy production in Ontario — to supply to Michigan,” said Vair.

Lysyk's 2015 report said Ontario’s transmission system requires almost $4.5-billion to replace aging infrastructure.

Part of the proposed feasibility study will look into the long and short-term benefits of Michigan linking the eastern Upper Peninsula to the Sault Ste. Marie, Ont. energy grid.

“Ontario’s generation has changed a great deal, including the area just across the Soo,” said Valerie Brader, executive director of MAE, which is in on the request. 

“This study will help us identify whether, due to all these changes, there are new opportunities for infrastructure that will make Michigan more adaptable,” she added.

In her 2015 study, Lysyk said Ontarians were paying too much for power, while the province is not charging enough to export its surplus electricity. 

The 2015 study said in some instances between 2009 and 2014 where too much power was being produced, the province paid exporters over $32-million to take our surplus Ontario power. 

Local initiatives, such as a recently-announce 7-megawatt battery project, show Sault Ste. Marie is being proactive and carving a niche in the energy sector, said Vair.

“We think that it’s a growth market and is globally important. Having companies with technologies here, having projects piloted here, like the new energy storage project in Sault Ste. Marie —We think that is going to help drive further investment, attract companies to our region, which will help grow jobs and our economy,” said Vair.

“We spend a lot of time looking where the market is going and where the technology is going, and then trying to make sure Sault Ste. Marie maintains a leadership position there, bringing all of those components together,” he added.