Michigan’s long-term decarbonization goals depend on large-scale electrification of buildings. However, electrification will not occur at scale if it is not economically viable for households. The “spark gap” measures the ratio between electricity prices and gas prices per unit of energy, determining when electrification will be cost effective for residential customers. This white paper examines how incremental electricity load could narrow Michigan’s spark gap and explores the policy implications that result from the analysis. 5 Lakes Energy also developed an online tool to show how different rates of load growth in various areas can affect the spark gap.
