California Entering Decade of Disruption, as Power System Shifts Dramatically

Communities across California have formed Community Choice Aggregators (CCAs) at a rapid rate since 2010, with over half of them starting within the last two years. County and city governments administer CCAs as local alternatives to investor-owned utilities. “The Growth of Community Choice Aggregation: Impacts to California’s Grid,” a new report produced by Next 10 and written by JR DeShazo, Julien Gattaciecca and Kelly Trumbull MPP ’17 of UCLA’s Luskin Center for Innovation, finds that if current growth trends continue, CCAs may serve a majority of California’s power consumers within the next 10 years, transforming California’s retail electricity sector. According to the report, the rise of CCAs has both direct and indirect positive effects on overall renewable energy consumed in California, helping contribute to the state meeting its 2030 RPS targets approximately 10 years in advance. Even with such an important impact on the penetration of renewable energies, CCAs’ effects on the grid have been negligible so far. This is in part because when a CCA starts, it handles the needs of existing electric customers, and often gets power from existing power plants. In the long term, though, CCAs’ impact on the grid depends on their energy procurement strategies and their local investments. “The public and local nature of CCAs positions them to implement local energy programs that will help to reduce or shift energy consumption, benefiting the grid as well as their customers,” DeShazo said.

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Photo by iStock / oveguli

 

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