Clean Cooperative
  • Home
  • New ERA
    • New ERA federal register notice
  • News
  • Reports
    • Uncooperative: Colorado
    • Uncooperative: New Mexico
  • About

What does cheap solar mean for electric cooperatives?

11/30/2017

 
By Joe Smyth | joe@cleancooperative.com | @joesmyth
A look at two Colorado electric cooperatives navigating the implications of solar power’s declining costs

Emily Bowie at San Juan Citizens Alliance writes about how the La Plata Electric Association (LPEA) board of directors is discussing the implications of the declining costs of solar energy. Bowie describes how the “board’s touchiest topic is how the declining costs of renewable energy (and rising costs of coal) should impact LPEA’s future.”

Some board directors are concerned about how declining solar power costs could encourage more customers to install their own rooftop solar arrays, and what that might mean for the electric cooperative.

Other board members are more focused on the opportunity for LPEA to take advantage of falling solar power prices, by pursuing its own solar projects. As LPEA director Bob Lynch put it, “I want to be part of a plan that figures out how to use solar to help all our members.”
Picture
San Juan Citizens Alliance graphic outlining distributed and centralized power generation

​Bowie outlines the differences between centralized power like coal-fired plants, “behind the meter” systems that homeowners can install like rooftop solar arrays, and distributed power like community solar gardens and small hydro.

“The problem is that half the LPEA board is stuck debating behind-the-meter solar when the other half wants to explore our options for distributed renewable power,” says Bowie.


​The board of directors of my own electric cooperative, Mountain Parks Electric, has also discussed the implications of cheap solar power at its recent meetings. During our July board meeting, Mountain Parks Electric General Manager Tom Sifers presented three recent developments showing why the cooperative needed to pay attention to the declining costs of solar power. One was growing interest in rooftop solar arrays from Mountain Parks Electric members. Another was that two towns that the cooperative serves are considering larger solar arrays at their water treatment plants, as a way to lower costs.

Third, Mountain Parks Electric had also recently seen prices for bids to build a solar project that the cooperative itself was considering, in collaboration with Rocky Mountain Institute’s Shine Program. Mountain Parks Electric General Manager Tom Sifers noted that those bids “got our eyes open that solar is here and you can buy it for 5 cents, and that’s cheaper than our wholesale rate, let alone our retail rate - it’s half of that.”

As Kevin Brehm with Rocky Mountain Institute describes, those bids for distributed solar projects “confirm that we have crossed a significant tipping point where distributed solar is not only a means to supply green energy and to promote regional economic development, but also an opportunity to decrease energy costs and to drive down bills for price-sensitive energy consumers.”

The solar projects will also deliver energy at a price that will stay flat, while power provided by coal plants is expected to continue rising.
Picture
Rocky Mountain Institute graphic showing bids for new distributed solar projects that would deliver power at a lower price than the cost of electricity and transmission from coal plants the co-ops currently purchase

Following the presentation by our general manager at the July meeting, Mountain Parks Electric board members discussed the opportunities and challenges presented by cheap solar power. Some directors discussed steps the cooperative could take to limit its members’ abilities to pursue their own solar projects, such as discouraging the towns from moving forward with solar projects, and reducing the size of solar arrays that could qualify for net metering.

At the same time, Member Relations Manager Rob Taylor highlighted the opportunity: “We’re going to have to make some choices, and one of those could be getting into the solar industry.”


Four months later, Mountain Parks Electric hasn’t moved to restrict its members from pursuing solar projects. There didn’t seem to be agreement on the board, and it also became clear that rolling back net metering policies would be controversial. The customers that electric cooperatives serve are also members and collectively own the co-op, and this dynamic seems to have informed the board’s approach.

But the board has been able to agree to continue pursuing its own solar projects. At its September meeting, the board unanimously agreed to sign a letter of intent to proceed with a solar project in Jackson County. It has also discussed pursuing other solar projects in Grand County.

There is a key difference that helps explain why the Mountain Parks Electric Board has been able to more easily agree to pursue new distributed solar projects. Unlike La Plata Electric, Mountain Parks Electric has not reached the 5% limit on local generation imposed by its contract with Tri-State Generation and Transmission. So for now, Mountain Parks Electric can pursue distributed renewable energy projects without navigating that additional hurdle.

In contrast, as Bowie describes:
LPEA could actually obtain a majority local, renewable energy through locally controlled, distributed power. Doing so would not only boost our local economy and protect the planet – but also, because LPEA would control the facilities, it would lower electricity rates for everyone.

But Tri-State’s 5% cap on local generation paralyzes our ability to make this vision a reality. Until we find a way around the limit, we’re married to Tri-State’s increasingly high cost, coal-intensive rates.


Comments are closed.
    Tweet
      Sign up for email updates
    Sign up for email updates

    Recent Articles

    Project Tundra coal carbon project faces delays, higher costs, and departing contractor

    Lignite Energy Council shouldn’t be funded by utility ratepayers, Minnesota Attorney General argues

    Major co-op supports Biden coal debt relief proposal that NRECA has sought to undermine​

    Basin Electric faces growing pressure on coal from co-ops, insurers, and banks​

    Tri-State: Moving a cooperative power provider from coal to clean energy​

    Tri-State will replace coal plants with a gigawatt of new wind and solar

    United Power and La Plata Electric ask Colorado Public Utilities Commission to determine Tri-State exit fee

    Colorado Rural Electric Association spent electric cooperatives’ money supporting Republican politicians​

    Colorado Public Utilities Commissioner questions "whether or not Tri-State has been candid with us"

    Rural America could power a renewable economy - but first we need to solve coal debt​

    Tri-State explores FERC rate regulation to limit state oversight

    Poudre Valley Electric sets "80 by 2030" carbon free goal

    Guzman Energy proposal would finance retirement of Tri-State coal plants, add 1.2 gigawatts of new wind and solar power

    Colorado Public Utilities Commission will oversee Tri-State resource planning

    Colorado communities and state Energy Office urge Public Utilities Commission oversight of Tri-State

    Reports examine the impacts of Tri-State's high wholesale power costs​

    Tri-State executive involved with anti-Clean Air Act group since 2005

    US Congressional Committee requests details of Tri-State funding to anti-Clean Air Act group

    Renewable energy projects stalled in 2018 among Tri-State member co-ops

    Second co-op asks Tri-State to pull “Better Together” ads

    Tri-State won’t allow co-op members to attend annual meeting

    Tri-State expects member co-ops to support bylaw changes at annual meeting

    Rocky Mountain Farmers Union calls on Tri-State to adopt flexible contracts and more clean energy

    Co-ops in Colorado push for change at Tri-State

    Will Municipal Energy Agency of Nebraska remain reliant on coal?​

    Tri-State ad campaign tells co-ops they’re “better together”

    La Plata Electric concerned Tri-State debt will lead to higher rates​

    Colorado Public Utilities Commission asserts jurisdiction over Tri-State​

    More Colorado co-ops announce clean energy goals

    Ski industry climate change efforts shift to electric utilities and their regulators

    Public Utilities Commission rejects Tri-State motion to exclude Colorado Energy Office from exit charge case

    Tri-State claims that co-ops "have intervened on Tri-State's behalf at the PUC” don’t add up

    Colorado state legislators urge Public Utilities Commission to determine Tri-State exit charge

    United Power says Tri-State policies are turning away large customers

    Next PUC Commissioner John Gavan "consensus choice" of Governors Hickenlooper and Polis

    Tri-State policy change discourages battery projects in rural Colorado and New Mexico

    Colorado Public Utilities Commission orders Tri-State to "satisfy or answer" exit charge complaint from Delta Montrose Electric

    United Power seeks solutions to "increasingly outmoded G&T business models"

    Clean Energy Means Business Summit highlights renewable energy opportunities and challenges in rural Colorado

    ​Governor-elect Jared Polis says moving Colorado toward more renewable energy will be a top priority

    Electric cooperative officials discuss cheap renewable energy and an “eroding monopoly”

    Delta Montrose Electric members vote for new financing options, supporting a potential buyout of Tri-State contract

    Poudre Valley Electric requests Tri-State policy changes and fuel mix study

    Holy Cross Energy plans to shift away from coal, aiming for 70% renewable energy​

    What do corporate renewable energy commitments mean for electric utilities?

    Colorado Energy Plan approval will mean new renewable energy investments in rural Colorado

    Report: Tri-State could save $600 million by shifting from coal to renewable energy​

    Delta Montrose Electric seeks new financing options to end contract with Tri-State

    Wind energy jobs in rural Colorado attract bipartisan support

    Colorado Energy Plan analysis shows switching from coal to renewable energy will boost jobs and local tax revenue​

    Poudre Valley Electric and Xcel Energy Colorado President win national awards from Smart Electric Power Alliance

    Latest coal plant subsidy proposal could hit electricity bills in the West

    Moody’s report: “High quality renewable resources” could help Tri-State and Basin Electric navigate rising carbon transition risks

    Senator Heinrich highlights “frustrations in New Mexico” with Tri-State’s limits on local solar

    Moody’s report shows Tri-State’s coal plants are more expensive than new renewable energy

    Tri-State’s limits on local energy development are a growing problem for co-op members

    ​Governor Hickenlooper discusses Tri-State at the Climate Leadership Conference

    Bids for Xcel’s Colorado Energy Plan include a proposal for the world’s largest battery

    ​New wind and solar power in Colorado is now cheaper than existing coal plants

    ​Companies' 100% renewable energy goals are getting results in Colorado

    ​What does cheap solar mean for electric cooperatives?

    Colorado towns and cities are helping push utilities to embrace renewable energy

    ​How are electric cooperatives navigating the transition from coal to cheap clean energy?​

    ​Blocked from building more solar projects, United Power shifts to community batteries


    Economic reality sets in for Tri-State efforts to expand the Holcomb coal plant

    Solar projects in the works in Grand and Jackson counties

    ​Mountain Parks Electric grapples with solar

    Categories

    All
    100% Renewable Energy
    Basin Electric
    Black Hills Energy
    Carbon Capture
    Central New Mexico Electric
    Colorado Energy Plan
    Colorado Public Utilities Commission
    Colorado Rural Electric Association
    Comanche Coal Plant
    Craig Coal Plant
    Delta Montrose Electric
    DMEA Vs Tri State
    Dry Fork Coal Plant
    Empire Electric
    Escalante Coal Plant
    Generation And Transmission Associations
    Global Climate Action Summit
    Governor Hickenlooper
    Grand Valley Power
    Great River Energy
    Gunnison County Electric
    Guzman Energy
    Highline Electric
    Holy Cross Energy
    Intermountain Rural Electric
    Intermountain Rural Electric Association
    Jared Polis
    K.C. Electric
    Kit Carson Electric
    La Plata Electric Association
    Lignite Energy Council
    Minnkota Power
    Mora-San Miguel Electric
    Morgan County Electric
    Mountain Parks Electric
    Mountain View Electric
    Municipal Energy Agency Of Nebraska
    National Rural Electric Cooperative Association
    Net Metering
    Otero County Electric
    Platte River Power Authority
    Poudre Valley Electric
    Poudre Valley Rural Electric
    Sangre De Cristo Electric
    San Isabel Electric
    San Luis Valley Electric
    San Miguel Power
    Senator Heinrich
    Sierra Electric
    Southeast Colorado Power
    Springerville Coal Plant
    Tri State Generation And Transmission
    United Power
    White River Electric
    Wind Energy
    Xcel Energy
    Yampa Valley Electric Association
    Y-W Electric

    Archives

    October 2021
    May 2021
    November 2020
    July 2020
    February 2020
    November 2019
    October 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    June 2018
    May 2018
    April 2018
    March 2018
    January 2018
    December 2017
    November 2017
    September 2017
    August 2017
    July 2017

    RSS Feed

  • Home
  • New ERA
    • New ERA federal register notice
  • News
  • Reports
    • Uncooperative: Colorado
    • Uncooperative: New Mexico
  • About