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.
Resilient Decarbonization Requires State and Local Leadership
Are California’s energy resilience assets being used to provide energy security for diverse and important sub-sets of individual electricity customers? Yes, but not for all important sub-sets. Has massive deployment of on-site energy resilience assets in California to date enabled their effective use to back up local electricity grids. Not yet. Are energy resilience assets being integrated with grid assets to maximize local energy security? Not yet. Will the doubling of resilient supply assets expected in the next five years materially improve energy resilience in California? Not to the extent it could. Optimally effective use can only be achieved when there is smarter and more flexible local electricity grid operation. The cost of local energy resilience can either be high or modest, depending on whether on-site energy supply and storage assets are used effectively. Especially assets that decarbonize cost-efficiently and result in “resilient decarbonization”. Community microgrids enable effective use of resilient decarbonization assets, but not utility owned solar and battery storage assets. Their role in for-profit utility rate-base building has yet to be demonstrated. The urgent question is whether other stakeholders - cities, counties and states - will overcome utility resistance and lead the way on an affordable energy resilience path that serves all energy users, not just those who have backup on-site.
Solar Power Cost, Benefit, and Deployment Capacity Shifts
A New Opportunity for California Cities and Counties. Property owners in most of northern California now recapture their on-site solar investments in as little as 5-6 years and continue to save money for another 20 years. Their communities benefit as well to the extent local governments act to capture reliability, resilience and equity benefits a thriving local solar industry makes possible. California counties and cities with mature local solar deployment capacity are seeing sustained double digit annual on-site solar expansion. It is as if an exceptionally talented and productive player just began playing for the local team – a player with the ability to lower energy costs, increase energy resilience and enable more equitable access to locally produced zero carbon electricity.
Local Climate Action and Adaptation Planning
Local climate action and adaptation is a relatively new planning consideration. Carefully planned and implemented, it can strengthen local economies, create local jobs, increase county and city tax revenues, and improve essential services. Local planning is essential because of local differences that cause large local deviations from statewide average energy usage patterns, transportation infrastructure, renewable resource opportunities, environmental concerns, and demographics.