pwr_april-2024 - 16

LEGAL & REGULATORY
Distributed Power, EAAS-
New Ways to Join the
Clean Energy Transition
Ashley Wald
T
he first image that likely comes to mind when the average
energy consumer thinks about renewable energy is some
kind of vast (utility-scale) solar or wind farm, or a massive
battery project, usually pictured against a picturesque backdrop
of rolling fields or a delightful sunset. But the way many energy
customers are actually engaging in the renewable energy
and battery storage green energy transition is actually different
(and in fact, is changing).
Corporate customers interested in pursuing green energy
or sustainability strategies now have more options than the
conventional method of purchasing renewable energy credits
from utility-scale renewable energy projects. Energy customers
large and small can also opt to install a behind the meter
(BTM) distributed power project, and electricity customers can
also enter into agreements to buy services from those BTM
projects, such as having the BTM/distributed project operated
and maintained.
These small-scale, localized projects offer a variety of benefits.
Community solar garden subscriptions have allowed
customers without their own rooftops or suitable surfaces
for solar development to participate in bolstering the solar
industry by financially supporting the installation of a solar
array in their own service territory. In the same way, BTM/
distributed projects enable a broader group of electricity
customers to participate in the generation of clean energy,
the storage and strategic use of that energy, or even encouraging
the electrification of vehicle fleets by allowing for
electric vehicle charging.
These BTM/distributed projects can offer significant cost
savings and other benefits to a wide variety of electricity
customers. For example, commercial and industrial customers
looking to shave off coincident peak energy charges (the
costly charges paid to a utility for consuming electricity at the
time when electricity demand on the system as a whole is
highest) can deploy battery energy storage projects. There are
a growing number of proficient developers and contractors
specifically in the BTM/distributed renewable energy and battery
space (in addition to offering residential services) that
can help design, install, operate-and either own or lease-
BTM/distributed projects for electricity customers, which do
not require any specialized technical or commercial expertise
from those electricity customers. While regulatory and other
considerations must be worked through on a case-by-case
basis, there are myriad of financial (reduced electricity bills),
tax (based on federal, state, and local incentives), and sustainability
benefits that can be enjoyed.
Recently, a new suite of " energy as a service " , known as
EAAS, and energy efficiency offerings from commercial real
estate enterprises to their tenants across the nation provide
opportunities to buy green energy. Tenants can manage
energy costs through storage, electrify vehicle fleets, and
16
create more sustainable supply chains, with the same ease
and simplicity as entering into a simple commercial contract
for services.
For years, the development of energy generation projects
has largely been dominated by utility-scale projects located
far from load centers, requiring transmission for delivery to
consumers. As Arshad Mansoor, president and CEO of EPRI,
pointed out in his " The Clean Energy Balancing Act " article for
POWER: " [T]he electric sector is decarbonizing rapidly, reducing
its emissions by almost 40% in less than two decades. As
solar and wind deployment accelerate, and some aging carbon-emitting
plants are shuttered, the electricity supply will
need to remain reliable. While speed is essential, prudency
suggests keeping existing plants for the occasions when they
are needed and accelerating the development of new technologies
to balance the future system. "
In addition to the cost savings and ease of implementation,
another advantage to BTM/distributed projects is they can
reliably provide for electric customers' energy use and ongoing
operations without the transmission and electric grid risk
(including congestion). Battery systems can protect against
power outages and manage electric system reliability issues.
Sometimes utilities will even pay customers for the ability to
take advantage of these opportunities, offering payments for
the frequency regulation and voltage control that batteries can
provide to the electric system.
As Mansoor also pointed out, " [w]hile demand for electricity
grows, our nation's infrastructure is under increasing stress
from extreme weather events.
One-hundred-year extremes
are now occurring every year. " Because BTM/distributed projects
are local by design, they don't require transmission lines
or, typically, the build-out of extensive, expensive infrastructure.
As a result, they can serve as a strong tool in the fight to
make the electric system more resilient in the face of extreme
weather and can provide localized solutions to protecting
against extreme weather nationally that disrupts the broader
electric system.
One more consideration, as more employers are making
corporate decisions based in part on the values of their employees.
Gen Z, Gen X, and millennials are-thankfully-quite
focused on the urgency of halting and reversing the impacts of
climate change. These employees are looking for ways to participate
in the green energy transition and increasingly expect
their employers to pursue climate, energy, and environmental
policies that help address climate change. When employers
can point to the EV charging stations in the solar-canopied
parking lot of the building, it helps demonstrate that prioritizing
green energy and sustainability is a company priority. ■
-Ashley Wald is a partner at Holland & Hart LLP, providing guidance
to clients in the solar, battery storage, wind, hydropower,
and biomass industries as they develop, construct, buy, and sell
projects and related infrastructure across the U.S.
www.powermag.com
POWER | April 2024
http://www.powermag.com
pwr_april-2024

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