simple + green

image credit: Elsie esq.

This is getting interesting. According to a recent article in the San Francisco Chronicle, communities around California are looking to gain power over their energy.

Communities such as Marin County are going up against PG&E to force the change to renewable energy. Frustrated by lack of options in this arena, these communities have set up task forces to create alternatives.

By using an organized plan, known as a CCA, these communities could gain control over how they purchase and manage energy:

The plan, called “community choice aggregation” or CCA, would pool the energy needs of all residents and businesses, allowing a local board to negotiate not only for energy rates but energy sources. Similar efforts are under way in San Francisco, Berkeley, Beverly Hills and other cities.

In Marin County’s example, consumers will have two options: “light green” or “dark green.”

Ratepayers would have a choice: “light green” or “dark green.” Light green customers would get 25 to 50 percent of their energy from “qualified” renewable sources - everything other than large hydropower. PG&E estimates 14 percent of its energy will come from renewable sources this year.

Dark green would offer 100 percent renewables. PG&E would still distribute power and maintain poles and lines; Marin would simply choose other energy generators. (Technically, electrons can’t be tagged “green” or “brown” - advocates say demanding renewable sources forces more into the overall grid).

As expected, PG&E, who supplies and distributes energy throughout Northern California, is an opponent. Could it be that they stand to lose most of the business in the areas that break out on their own?

The article breaks out a number of reasons for opposition to Marin’s plans. Not the least of which is: the bottom line ($$$!).

According to several experts, high costs of renewable energy remains the number one barrier to adoption. Even PG&E, who stands to lose big if these local initiatives work, says that cost is the one major stopping point in making the switch to renewable energy.

PG&E argues that becoming part of the local program will open ratepayers to high costs and not necessarily more renewable sources. For one, PG&E says it’s already in the renewable hunt. Although it won’t meet a state-set deadline for 20 percent renewable power by 2010, the company expects to soon after. In addition to large-scale solar projects, the utility is working on buying power from more small alternative energy companies.

So far, PG&E has hit the same thorny issue - high costs.

“We’re working hard to bring new renewable supplies into being … but they don’t come without a cost, so it’s a balancing act,” said David Rubin, director of service analysis for PG&E. “We don’t think it’s credible to get to those (renewable source) levels without much stiffer costs than are being represented in (CCA communities’) business plans.”

In a nutshell:

…the renewable energy goals aren’t attainable at the prices advertised; and they will continue to track above PG&E rates, the company said.

I absolutely applaud any effort to move to renewable, and (as a PG&E customer), I’m appalled by the lack of renewable source options. The DIY side of me really wants these communities to plow ahead and get this done. But the balanced side can see that you have to be cautious when going up against the body that controls power.

My take is that if they proceed cautiously, and by resourcing the smartest people possible (legal, energy experts), they can make this happen. Regardless, this is going to be very interesting to watch.

For more details on how the local CCA works:

Under a “community choice aggregation,” a local government or a group of local governments buys power for customers within their communities. Although the CCA does not own the transmission wires, it may or may not own energy generating facilities.

Proponents say the system allows for more local control, the inclusion of more renewable energy sources and the possibility of negotiating for better electricity rates.

Opponents contend that renewable energy remains expensive and that local power authorities might not have the necessary expertise in the energy market.