Advanced Energy Perspectives

Florida is, in many ways, a state powered by sunshine. From the endless summer that attracts droves of tourists and drives the associated $67 billion tourism industry to the sun-loving crops that allow Florida to lead the Southeast in agriculture, Floridians have the ready availability of sunlight to thank for the state’s most prominent industries. Now, there is another way that the Sunshine State could capitalize on its solar resource – to feed its commercial and industrial powerhouses, producing jobs and investment along with energy that’s low-cost and clean. 

Corporate renewable energy transactions have accelerated rapidly since companies first recognized and seized upon the advantages of low-cost, abundant resources like solar and wind, reaching a record 6.5 GW contracted in 2018. But the 15 GW of commercial and industrial (C&I) customer deals signed since 2014 aren’t spread evenly across the country. In fact, 16 states have no C&I renewable energy projects operational or in development, and another 10 states have fewer than 50 MW (or less than 1% of the total). While resource potential plays a role, it is far from the whole story; policies that facilitate corporate procurement to drive renewable energy development are also key. Which means that the 26 states that currently account for less than 10% of the market can play catch-up. Our recent guide from the Advanced Energy Buyers Group shows how.

Photo by Drew Buikema, used under a Creative Commons license. 

Back in December 2016, an omnibus energy bill signed into law in Michigan contained a small section requiring utilities to develop “voluntary green pricing” programs. Today, nearly two years later, the ensuing regulatory process is producing results that will open new renewable energy options for residential as well as commercial and industrial (C&I) customers. The Michigan Public Service Commission recently issued orders requiring improvements to Consumers Energy’s “Large Customer Renewable Energy Program” (LC-REP) and Solar Gardens program, and to DTE’s MIGreenPower program, while also requiring DTE to introduce a new program focused on C&I customers. The regulatory process is far from complete, but before long corporate customers in Michigan will have more and better ways to procure the renewable energy they want to power their operations.

Last September, the Advanced Energy Buyers Group launched with the mission to advocate for policies that would make it easier for large customers to pursue advanced energy, and to accelerate the transition to an energy system that is more secure, clean, and affordable for all customers. One year in, we have secured a few key wins—and the work is just beginning.

Just over a month ago, AEE launched a new group of advanced energy users, called the Advanced Energy Buyers Group, led by member companies including Microsoft, Amazon, Walmart, and others. The concept is simple: Just as AEE is the business voice of advanced energy, the Advanced Energy Buyers Group serves as the policy voice of energy users. In practice, that means the Buyers Group will weigh in on a range of energy policy issues that matter to companies on the customer side of the meter, specifically on behalf of companies seeking ways to increase their use of advanced energy.

In the month since its launch, the Buyers Group has kept busy on two high profile issues, both with big implications for large consumers: the Section 201 Solar Trade Case now before the U.S. International Trade Commission and the “Grid Pricing Rule” proposed by the Department of Energy late last month and under consideration by the Federal Energy Regulatory Commission.

Let’s dig in.