Game Plan

Gameplan for Driving Midwest Integrated Suppliers for Renewable Energy

This is a state that has led the world in several areas, from cars to corn flakes.  Today, however, we stand at a critical juncture in dveloping a new industry for Michigan. It's well-known that we need to diversify the industrial base in Michigan; likewise, we know that we need to take new approaches to create further business opportunities. 

As great as automotive has been, its time has passed as being the main force to sustain manufacturing in Michigan. While the industry has been revitalized, we know that it will not likely be as robust as it once was.  At the same time, we have the talent, experience, and manufacturing systems to make things efficiently and well.  And in spite of the shrinkage of our industrial base, what we do continues to have value in this country.  Nearly two-thirds of all jobs are supported by manufacturing, while jobs in this sector still pay 25 percent more.

 

Spearheading New Energy Policy to Generate Business

Clean energy technology is the future, and with $10 billion already invested and more than 220 manufacturers supplying wind and solar components, we've already started down the path to make it part of Michigan's future.  Today, according to Henry Kelly, an official with the U.S. Dept. of Energy's Office of Energy Efficiency and Renewable Energy, the state ranks fourth in solar production and leads the country in clean energy patents.  We are among the top five states in renewable energy manufacturing potential and wind potential.

Regretfully, a national energy policy that would provide direction for our industry remains a distant dream.  For Michigan's manufacturers to leverage this base and capture the lead in clean energy technology requires that forward-thinking business owners be willing to work with other suppliers and service providers in advocating for renewable energy initiatives that will drive new business here in this state.

Wind and solar energy investors around the world are looking to jurisdictions that have clear and well-defined targets for energy development and a comprehensive policy framework to support such investment going forward.  With several entities advocating today for policy change to drive more renewable energy in Michigan, however, no one organization has had the platform to consolidate these efforts.

As an alliance of the state's manufacturers and related businesses, Midwest Integrated Suppliers for Renewable Energy is in a unique position to become the unifying voice in coordinating a single message pressing for policy change to increase renewable energy manufacturing, jobs and investment in Michigan.

 

Promoting Michigan Content to Level the Playing Field

A related objective will be to advocate for policy change that incorporates a greater incentive to use local, or Michigan Content in new energy initiatives that will provide a more level playing field against global competition.  Although local content is just beginning to gain traction in the state, the neighboring province of Ontario had five years experience implementing local content policy as part of the Green Energy and Economy Act and a related feed-in tariff program passed in 2006.

Ontario's renewable energy legislation was passed to stimulate job growth and local investment, while phasing out the use of coal in energy production.  Since the law's passage, the province has become Canada's wind energy leader with 1,636 megawatts (MW) of current installed capacity, according to consultant Paul W. Gipe, one of the authors of the law.  And each 100 MW of wind energy development represents a minimum of 100 jobs, $2.5 million in private investment, and $300,000 in revenue to municipal governments in the form of taxes and an equal amount to rural landowners in the form of lease payments.

On the solar side, a recent study of solar photovoltaic (PV) power generation has found that if the provincial utility continues to award feed-in tariff contracts to solar generator sat the current rate over the next five years, it would translate into more than 70,000 person-years of employment.

The study also reports that solar PV generation in Ontario produces 12-to-15 times the number of jobs created by non-renewable sources such as coal, natural gas or nuclear per unit of energy produced.  Additionally, solar PV will result in $7.9 billion of spending between 2010 and 2015.  Solar PV will also create hundreds of millions of dollars in tax revenue for both Ontario and Canada.

 

Collaborating for Energy Policy Change Promises Better Results

Driving Midwest Integrated Suppliers' mission, then, is a three-pronged effort to coordinate all interested parties in reviewing and ranking initiatives that increase renewable energy-related manufacturing and services; advocate for policy change that incorporates a greater incentive to use Michigan Content; and educate audiences as to the benefits of these proposed initiatives.  In short, we will develop one message and present it with one voice.

To equitably spread the cost of driving the alliance, a membership structure has been established that is pro-rated by category (Active, Associate, and Supportive) and based on annual gross revenue.  Active Members are manufacturers and suppliers; Associate Members are service providers to the industry; and Supportive Members are potential vendors to the membership. 

Nonprofit organizations and interested individuals are considered Valuable Resources and will pay no dues in exchange for their contribution of time and effort.

Financial support for driving Midwest Integrated Suppliers will also come from sponsors of the alliance's energy summit scheduled for March 21, 2012, who recognize the need for an energy policy to support business opportunity in renewable energy; and from foundations that support clean energy initiatives as they relate to economic development.  Additionally, we will draw revenue to support operations via Finder's Fees paid by members who directly benefit from participation in the alliance (see Defining the Membership Structure).

 

Deliverables Completed in Advance of Launch

To demonstrate value and build support for an alliance, a start-up team has put together much of the organization over the last two years under Bannister and Co. Marketing Communications' umbrella and in advance of launch.  To date, the team has:

  Formalized the alliance's purpose following meetings with potential members in 2009 and 2010; and refined that
    purpose to include an Overall Mission and Initial Objective.

  Formalized the alliance as a Michigan-based LLC with anticipated status with the IRS as a nonprofit 501(c)(6)
    organization for the purpose of promoting a specific agenda.

  Developed and revised the membership categories to cover potential paid members, as well as nonprofit members.

  Researched and met with potential members over the last three years and compiled a membership directory broken
    out into relevant categories for use in recruiting and collaboration:

           Active Members:           Bioenergy OEMS; Bioenergy Suppliers; Solar Energy OEMs;
                                                Solar Energy Suppliers; Wind Turbine OEMs; Wind Turbine
                                                Suppliers; Wind Farm Developers                                                      

 

           Associate Members:      Energy/Service Providers; Solar/Service Providers;
                                                 Wind/Service Providers

           Supportive Members     Vendors and third-party suppliers

           Valuable Resources       Nonprofit organizations, educational institutions, and individuals supporting
                                          the use of renewable energy and/or economic development in the state.

 

  Identified and communicated with relevant nonprofit organizations in which the host organization acts as
    fiduciary in overseeing grants to the alliance.

  Drafted the initial position paper and modified it to reflect the evolving mission.

  Designed and produced the brand and business package for Midwest Integrated Suppliers and registered
    the domain name.

  Launched the Midwest Alert e-letter to communicate relevant issues on a timely basis, as well as support
    membership development. 

  Launched a blog entitled Midwest Insights that provides a format for editorial opinion, as well as complementing
    membership development.

  Collaborated with the Michigan Energy Alternatives Project to support implementation of a pilot CLEAN energy
    program within the Traverse City municipal utility.

  Drafted copy for a factsheet and PowerPoint presentation for dissemination to elected officials that provide a
    case for implementing a CLEAN energy program.

  Drafted and revised a membership dues protocol based on annual revenues.

  Drafted and revised the Gameplan for Driving Midwest Integrated Suppliers for Renewable Energy as the mission
    has evolved, to include deliverables and budget options.

  Held the launch meeting to induct an Advisory Board and approve the mission, deliverables and budget.  Held
    subsequent meetings to address the alliance’s focus and mission.

  Developed the strategy, budget and marketing plan for sponsoring an energy summit tosupport the mission
    and coordinated the logistics in advance of the conference.


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