Consumers Energy Explores Geothermal Power for Michigan Neighborhoods

DETROIT, Mich. — Consumers Energy announced Thursday its plans to investigate the feasibility of utilizing geothermal energy to power various neighborhoods across Michigan. The initiative aims to leverage renewable technology to decrease pollution while simultaneously lowering energy costs for residents.

The Michigan Public Service Commission has granted approval for Consumers Energy to conduct a study focusing on the replacement of electricity and natural gas heating systems with a networked geothermal system. Tracy Wimmer, spokesperson for Consumers Energy, stated, “The study will determine the most cost-efficient and energy-efficient way to develop a networked geothermal system and how best to fund it.”

Wimmer added that initial costs for the project could be covered by Consumers, grant funding, or a combination of both, highlighting the potential long-term benefits. “We want to focus on areas where customers need significant energy cost reductions due to financial strain, as well as neighborhoods historically characterized by poor air quality,” Wimmer noted.

Geothermal energy systems utilize the earth’s consistent temperatures, between 50-60 degrees Fahrenheit, to heat or cool buildings. The systems function by circulating liquid through underground pipes, exchanging heat with the ground. Notably, the Michigan State Capitol employs a geothermal heating and cooling system, which was part of a $70 million infrastructure upgrade completed in 2022.

According to the University of Michigan‘s Center for Sustainable Systems, the U.S. has only tapped into less than 0.7% of its geothermal electricity resources, although usage is growing by approximately 3% annually. While geothermal systems can be costly to install, they offer low operational costs and significantly reduced carbon emissions compared to coal-based electricity, which emits roughly 35 times more carbon dioxide per unit of energy.

Consumers Energy plans to take its initiative a step further by developing networked geothermal systems serving multiple buildings, a move that Wimmer states could enhance efficiency compared to typical single-building systems. “Businesses with high cooling demands can expel warm air that can be utilized by connected residences, optimizing energy use,” she explained.

Wimmer indicated that ideal locations for such systems would be neighborhoods adjacent to industrial or commercial areas, allowing for diverse heating and cooling requirements. She reiterated the focus on economically struggling communities to help alleviate energy costs while improving local air quality.

This September, Consumers Energy received a $425,000 grant from the Michigan Public Service Commission under the Renewable Energy and Electrification Infrastructure Enhancement and Development grant program established through the state’s 2023 clean energy law. The commission allocated nearly $21 million to various projects aimed at reducing greenhouse gas emissions and supporting renewable energy initiatives.

As the study progresses, Consumers Energy aims to implement a pilot project in a selected neighborhood within its service territory. Wimmer emphasized that this project marks the initial phase of a broader investigation into potential installations. “We are assessing the locations where we can achieve the most benefits across cost-effectiveness, customer bill reductions, and emission reductions,” she said.

In related developments, Eversource, a utility provider in New England, has successfully launched a two-year networked geothermal project in Framingham, Massachusetts. This project is designed to heat and cool 36 buildings, including 24 residential homes, demonstrating the viability and effectiveness of networked geothermal systems.