As the demand for clean energy surges, Georgia is on the brink of a significant shift in its energy market. Large corporations are pushing for the ability to procure and finance clean energy projects, aiming to accelerate the integration of power-intensive facilities like data centers.
A collaborative effort among regulators, Georgia Power, and other stakeholders is underway to potentially establish a program by next year. This initiative would allow companies to directly contribute to the grid’s clean energy supply, potentially reducing the reliance on gas-fired plants which are currently planned to support the growing demands of artificial intelligence technologies.
Currently, the responsibility for new power projects largely lies with utilities in Georgia. However, the Clean Energy Buyers Association (CEBA) has spent two years negotiating with Georgia Power to allow commercial and industrial clients to bring their own clean energy projects online. Katie Southworth, CEBA’s deputy director for market and policy innovation in the South and Southeast, stated, “this will, for the first time, allow commercial and industrial customers to bring clean energy projects to the utility’s system.”
The Clean Energy Integration Resource (CIR) option is yet to be fully approved. Georgia Power and the Public Service Commission are still fine-tuning the program’s specifics. An official proposal will be submitted in a separate docket next year.
Despite the progress, the proposed plan from Georgia Power has not fully aligned with the expectations of data center companies. A significant issue is the lack of credit for solar and battery solutions in addressing future peak power demands, which Georgia Power uses to justify the expansion of gas plants.
Nonetheless, CEBA regards the CIR framework as a crucial step towards a “bring-your-own clean energy” model, fondly referred to as BYONCE in clean-energy social media circles, according to Southworth.
Opening up the playing field for clean energy
The CIR initiative supplements Georgia Power’s existing Clean and Renewable Energy Subscription (CARES) program, which mandates the utility to secure up to 4 gigawatts of renewable resources by 2035. Unlike CARES, which keeps the utility in charge of resource contracts, the CIR option empowers large customers to directly engage with developers and the utility. Georgia Power will assess the cost-effectiveness of projects, and once approved, customers gain credits for generated power and renewable energy certificates.
Since 2014, corporate procurements of clean energy in the U.S. have exceeded 100 gigawatts, representing 41% of all clean energy additions to the grid, as reported by CEBA. Notably, tech giants have fueled this growth despite political challenges.
The Southeast, lacking competitive energy markets, places utilities like Georgia Power in control of energy developments. This has coincided with some of the nation’s largest gas-plant expansion plans, as highlighted in reports.
With over 20 gigawatts of solar, battery, and hybrid projects seeking grid interconnection in Georgia, power-hungry companies could significantly bolster these clean energy initiatives, per the Southern Energy Renewable Association.
“The idea that a large customer can buy down the cost of a clean energy resource to make sure it’s brought onto the grid to benefit them and everybody else, because that’s of value to them — that’s theoretically a great concept,” said Jennifer Whitfield, senior attorney at the Southern Environmental Law Center. “We’re very supportive of the process because it has the potential to be a great asset to everyone else on the grid.”
Isabella Ariza from the Sierra Club’s Beyond Coal Campaign commended CEBA’s efforts to secure this option, viewing it as a positive development amidst decisions that may raise energy costs and impact climate pollution.
Original Story at www.canarymedia.com