Research shows that community-chosen energy integration programs have reduced costs, increased sustainability

Researchers from the University of Massachusetts Amherst have found that nearly 80 percent of Community Choice Energy (CCE) fusion programs set up by Massachusetts municipalities reduce electricity costs relative to utility rates. basic benefits, while 60% of the standard CCE packages are rated “green”. with a higher percentage of renewable energy certifications than is required by the commonwealth.

These findings are detailed in a new report published by the UMass Amherst Sustainability Policy Lab. This report examined the various opportunities and challenges associated with the implementation of CCE aggregation programs across the Bay State using data collected between 2019 and 2022.

CCE programs are authorized energy acquisition programs local government to aggregate electricity loads of people, businesses and city facilities to buy provide energy with competitive market prices. Massachusetts is one of only eight states in the country to have enacted CCE legislation, with such programs adopted by 157 of Massachusetts’ 351 municipalities as of November 2021.

The results of the study show that 79% of cities achieved savings compared to the monthly basic service rates of utilities, with the average savings corresponding to 0.88 cents per kWh, or about 93 USD per household per year.

“Total savings for these municipalities amount to about $70 million per year,” said Marta Vicarelli, assistant professor of economics. public policy at UMass Amherst and the study’s principal investigator, the study assessed city officials’ responses to interviews, focus groups, and an online survey. “Additionally, 35% of the city achieved savings of more than 1 cent per kWh—about $106 per household, per year—and the maximum savings corresponded to 2.55 cents per kWh, or approximately $271 per household, per year.”

Vicarelli’s team also found that 30% of the standard CCE packages aren’t just over the Massachusetts limit recycled energy requirements, but also includes 100% renewable energy certification, while 89% of cities whose contracts exceed state renewable energy level requirements have saved a total of approximately $33,500,000 each year.

“This is one of the most exciting and encouraging results,” says Vicarelli. “It shows that equitable and equitable access to energy is not affected by the transition to sustainable/renewable energy, which is essential to mitigating climate change.”

In the survey, cities systematically reported that they received additional benefits beyond their primary goal. “For example,” says Vicarelli, “among cities with ‘higher levels of renewable energy’ as their primary target, the top three reported benefits include higher levels of renewable energy (83). %), rate reduction (78%) and price stability (65%).”

In addition to outlining the benefits, the report also details some of the challenges municipalities face when setting up CCE programs, most commonly reported delays related to approvals. approval from the Department of Public Utilities (DPU); The researchers found that some cities had to wait more than a year for DPU approval. Smaller towns—especially in countryside—more likely to have had difficulty obtaining information regarding the creation of CCE programs and understanding or interpreting state regulations related to CCE.

“To our knowledge, this is the first study to evaluate the performance of the CCE program in the United States in detail using both market data analysis as well as the self-reported experience of cities,” says Vicarelli. . “Our results show that community energy integration programs contribute to a fairer energy market by reducing costs for consumers and by providing high price stability. Furthermore, with the price of solar and wind power decreasing over time, and the price of fossil fuels increasing and becoming more volatile, CCE programs are emerging as tools. promising cost-effectiveness to support the transition to sustainable energy and climate mitigation efforts.

“Last, but not least,” she said, “by expanding the local renewable energy market, CCE programs contribute to local economic development.”