In a single decade electricity generation capacity additions have shifted to natural gas and renewables while solar generation capacity additions in California have been a mix of large and small projects that enabled faster overall expansion.
Solar decarbonization substitutes solar energy for fossil fuels and reduces GHG emissions and is now well underway globally because solar energy also has significant economic and environmental benefits. Centralized solar electricity deployment maximizes electricity transport owners economic rewards, while local solar deployment also rewards energy users and communities. Total solar decarbonization impacts are maximized if all solar deployment pathways remain open and economically rewarding.
For-profit California electric utilities charge high prices and take minimal climate action. Three state-regulated for-profits, PG&E, SCE, and SDG&E, charge two to three times more for the electricity they deliver than large city regulated counterparts charge. The giant for-profits aim for carbon neutrality in 2040 or 2045. Large locally regulated electric utilities, SMUD and LADWP, aim for carbon neutrality by 2030 or 2035.
Energy Transition
California and other states need a way to capture the environmental and economic benefits of community solar. Other states have found a way. California’s CCE industry should ask the California legislature to consider allowing California CCEs to use all or a portion of annual CPUC mandated PCIA charges to put local renewable projects on an equal economic footing with projects that require new high voltage transmission capacity to deliver electricity locally. This will increase CCE capacity and flexibility to address local energy resilience needs and to provide equitable access locally to the environmental and economic benefits of solar electricity.
Analysis, News, Energy Transition
The Colorado Public Utilities Commission (PUC) has been tasked by the Colorado legislature to recommend whether and how to implement Community Choice Energy (CCE).
California’s CCE experience has been rich in diversity and local/state decarbonization impact. California CCE generation portfolios are on track to become fully decarbonized in the next few years. The California CCE model was conceived and adopted two decades ago. It exploits economic options available at the time but allows little flexibility to capture economic, environmental and energy resilience benefits of local supply and infrastructure investment.
Nevertheless, Colorado and other states can adapt and expand California’s CCE model to facilitate 21st century energy policy implementation. Specific adaptations can result in greater reliance on local renewable electricity sources and electrification of local transportation. By adopting them Colorado can take CCE to the next level of public benefits and impact.
