Onboarding the Renewable Energy Future; The Role of Public Policy Leadership

Electricity has uplifted society, like never before - leading to tremendous growth of markets, prosperity and even human consciousness. Truly a modern marvel that will energize humanity far into the future, we have not yet reached the pinnacle of electricity's capabilities.

We have a long way to go toward delivering reliable, safe and clean electricity to all of humanity. Daily, the planet reminds us through natural disasters that we are at both a boiling point and a crossroads.

To fully harness electricity's power to uplift people and to protect the planet - policy makers must continue to forge a new path forward, holding the line, while advancing sustainability and energy access for all.

The Rise of Net Metering, Distributed Energy Resources & Consumer Choice

Innovation in renewable energy systems and policy leadership in California opened the flood gates for distributed energy resources (DERs). Like light at the end of a tunnel, California has given us a glimpse into the future of consumer choice for electricity by advancing net energy metering laws (NEM).

NEM allows customers who generate their own energy ("customer-generators") to serve their energy needs directly onsite and to receive a financial credit on their electric bills for any surplus energy fed back to their utility.

An entire market, industry and tremendous opportunity has built up around California policy leadership - creating hundreds of thousands of jobs with the promise of millions, while expanding access to clean, reliable and affordable electricity for all.

Catastrophic Weather Events & The Implication for Distributed Energy Resources

Extreme dry weather and catastrophic events are driving electricity consumers off of the grid and into the hands of DERs providers. There’s no denying that DERs provide greater resiliency and reliability in areas vulnerable to extreme weather and natural disasters. Most often, they are a cost-effective non-wire alternative for our electric power system.

The advent of utility-scale renewable power on the grid may help meet renewable portfolio goals for utilities but it hardly moves the needle for resiliency to homes and businesses during power outages.

The shift to DERs and behind the meter powering systems is accelerating in parallel to catastrophic weather events. The consumer response to climate related power outages through the adoption of DERs will likely continue and accelerate.

The Fight for Consumer Choice and Access

Consumers now have a choice for more reliable, clean and affordable energy allowing utilities, for the first time, the opportunity to restructure the 100-year-old grid for a far more equitable energy system. For now, it appears that net metering laws and consumer choice are regularly being challenged by utility lobbyist groups. However, as more and more climatic events compromise the system, DERs will eventually be the savior, leading to the electric system of the future.

California, the beacon of policy leadership on energy access and sustainability, is under heavy pressure by the utility industry to reverse or water down the NEM laws which led to consumer choice. This is a critical time in the history of the evolution of our electric powering system.

California’s leadership on policy is more important than ever. While being tested to her limits California has the unique opportunity to leverage DERs to usher in the era of a highly resilient, reliable, affordable and sustainable electric power system for all.

Market Failure of Today's Electric Utility Model

When vested interests and the status quo go unchallenged, unregulated or unchecked, society risks market failure. Market failure occurs when the marketplace fails to adjust prices for the true costs of a firm's behavior.

The two largest wildfires in California history were caused by power lines. Unfortunately, these probably won’t be the last. The system is inherently prone to failure due to its exposed high voltage wiring becoming a tinderbox when it encounters extreme dry conditions.

The system is fragile when confronted by the new normal of climate change. No amount of stiffening and situational awareness can fix a fundamentally fragile system. Regulators must demand nothing less than an anti-fragile network.

How Can Policy Makers Advance the Future of DERs?

• First, hold the line on existing policy progress. Regulators must avoid being persuaded by lobbyists and vested interests to reverse the course and our progress.
• Secondly, policy makers can go on the offensive. Create new programs to advance access, sustainability and resilience through DERs. Provide consumers with even further choice.

The Grid of The Future Will Be Distributed

To expand access to affordable, reliable and clean energy, we must expand DERs.

Policy makers have more responsibility and opportunity than ever to lead. The stakes are high.

If policy makers preserve and expand consumer choice for DERs, society can onboard the future where clean, reliable and affordable electricity is accessible to all.