Community Choice Energy (CCE) is accelerating decarbonization of California’s electricity use. CCE service providers are a natural hub for collaborative engagement among local energy stakeholders and investors, including grid owners prosumers, counties and cities. But under current state imposed revenue diversions California CCEs cannot respond to local supply and energy resilience needs and opportunities, nor can they strike an economically beneficial long term balance between centralized and decentralized electricity supply for the areas they serve.
California Energy Democracy's Last Stand
California has ramped up a seventy-six billion dollar investment in all types of solar generation capacity over the past decade. California’s retail solar industry enabled half of the total investment. Rooftop solar has been a bright spot for California’s renewable energy transition even as state regulators and California utilities continue to make other energy democracy enablers - community choice, community solar, community microgrids - hard or impossible to finance.
Regulators are now considering rule changes that impose punitive “grid access” fees on rooftop solar adoption, plus drastic reductions in compensation for electricity that feeds into the grid from rooftop solar arrays. The future of energy democracy in California hangs in the balance.
[1] The proposed CPUC decision is not accompanied by case studies indicating how it will work out for ratepayers.
Local Gas and Electric Collaboration
It is time to recognize that a successful transition to a future decarbonized and more secure and resilient local infrastructure can’t be done at the state level or in silos at any level. It will depend on the expertise and capacities of both natural gas and electric utilities and their collaboration with counties and cities if it is to proceed as the fastest possible pace.
Natural gas utility collaboration with cities and counties must receive policy attention at least comparable to collaboration involving electric utilities. Current levels of reliability and resilience provided by natural gas utilities must carry forward continuously as hydrogen emerges as an enabler of the energy sector transition of the 21st Century.
The Gathering Storm
What is the best mix of locally generated and imported energy from the perspectives of cost and resilience? The answer will be different for every community. Should we wait for the long-promised “smart electricity grid”? Or should our counties and cities take up the task of making local infrastructure not only smart but technically and economically well-integrated? If so, they will be wise to collaborate with incumbent energy utilities. And with local families and businesses as well.
Doom and Hope
The brilliant scientists who created nuclear weapons were appalled by what they had made possible. Nuclear war. During the Cold War, they saw humanity inching steadily toward self-annihilation. They started a movement among themselves to lobby for nuclear sanity. They used the image of a clock showing minutes to midnight to make plain the imminence of existential risk. It was on the cover of every issue of their monthly magazine, the Bulletin of the Atomic Scientists. The minute hand moved back a bit when disarmament negotiations showed progress. It moved forward when tensions rose, or nuclear sabers rattled. We called it the Doomsday Clock. Clearly, humanity was in uncharted territory, master of its own fate and hostage to its worst instincts.
Local Energy Collaboration: An Emerging Priority
There is anecdotal evidence of the need for collaboration. For proponents of local clean energy resources there is an even more basic question. Why energy resources that are both clean and local? The case is compelling.
Simply put, local¹ clean energy resources are happening, unevenly around the world, mostly, except for California, outside the US. They come in many sizes. So do utilities. So do cities. Maybe we need a common denominator if we are to connect dots more strategically and less anecdotally.