Why Local Energy Initiatives Matter
Seemingly small wins in towns, cities, and regions add up to make a global difference.
I have a lot of options as an individual to make my energy use cleaner, more efficient, and cheaper. I can install solar panels, swap an oil furnace for a heat pump, buy an EV, or invest in energy efficiency improvements for my home.
Millions of households and small businesses are making one or more of these changes, and collectively it's having a huge impact in reducing dependency on fossil fuels, increasing the resiliency of the electric grid, and lowering the overall cost of energy. For example, the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) has estimated that heat pumps alone could cut home energy use by 31% to 47%. NREL also estimates that U.S. households installed 880,000 solar systems in 2023. Total small-scale solar installations accounted for nearly 2% of all electricity generated in the U.S. in 2023, according to the U.S. Energy Information Administration.
That energy impact is magnified greatly when local communities work together to help residents and businesses achieve cleaner, more efficient energy use. Community power and community choice aggregation (CCA) initiatives have given local governments the ability to purchase electricity directly and gain more control over the percentage of electricity coming from renewable sources.
Local investors and residents are developing community solar projects that allow residents to share in the benefits. Climate- and energy-focused political groups are emerging to lobby for change, educate the public, and support like-minded candidates within their communities. Forward-thinkers among local business and trade communities see opportunity in energy-related investments and focus. For example, some building contractors are promoting energy-efficiency features as key selling points for their projects.
This all adds up. The collective momentum from these small local efforts makes a difference at a larger scale. That 2% share that small-scale solar contributes to the U.S. energy output might not seem like much, but it's helping to keep coal-fired peaker power plants from coming online during-high demand periods. It's also making the power grid more reliable and resilient, something the state of Texas took note of after its massive power outages in 2021.
Educating the public in a small town on energy efficiency and how they can benefit from it might not appear to make much of a global difference. When thousands of small towns make that effort, real change happens. The growth of heat pump installations is a great example. The International Energy Agency (IEA) projects that heat pumps will meet nearly 20% of global heating needs by 2030. In the U.S., heat pump sales have overtaken sales of gas-fired heating systems according to the IEA.
Markets and governments have taken notice. The markets see opportunity, and with that comes investment in energy-related products and technology. Governments react to support and protect their related domestic industries and, eventually, take steps to encourage adoption of energy-efficient technology. This is how small movements grow into irreversible trends.
I started PowerTown to support local groups seeking to move their communities forward on energy efficiency and climate issues. They all face the same challenges that I will address in this blog:
Education: When our local community power committee first met, how little we knew about energy markets, regulation, and technology became immediately clear. We got up to speed through dogged research.
Public outreach: Informing local residents and businesses about what your group is doing and why is critical. If you can't communicate effectively, you risk confusion among the people you're trying to support. You also give opposing special interests an opportunity to negatively brand your efforts. Not every group has the expertise to execute a good communications plan.
Regulations and legislation: The energy and environmental domains tend to be heavily regulated with ever-changing federal and local laws. This includes understanding how your communities can benefit from government incentives. Keeping up with that and working with regulators and lawmakers is a daunting task that PowerTown will address.
Service provider vetting: At some point, you might need to hire or recommend a company to provide a service. The first task of our community power group was to recommend a broker to purchase electricity on the town's behalf. Understanding how the vetting process works, including what questions to ask and how to read and assess a proposal, is a critical skill.
Legal liability: Promoting energy efficiency can be contentious. Finding the best ways to conduct your group and communicate with the public can shield you from potential lawsuits, instead of leaving you exposed.
PowerTown's goal is to help you best address these and other challenges so you can more easily succeed with your local energy initiatives. The About PowerTown page has more information on what to expect by subscribing.
Thanks for starting this Substack account, Michael! You are doing a great service!!