As the U.S. takes major steps to achieve bold new carbon reduction goals, equity and environmental justice must be pillars of a customer-focused clean energy transition.
While tripling the rate of economy-wide carbon reduction through 2030 captures headlines, energy sector leaders face the challenging task of balancing the desire for emission reduction with the responsibility to serve customers equitably and help preserve the environment. Challenging, but worthwhile.
The Electric Power Research Institute’s (EPRI’s) work on decarbonization has always existed at the intersection of these two key issues. As EPRI considers a wide range of complementary approaches—and maintains a customer-centric focus—we enable the electric sector to achieve a low-carbon future without sacrificing continuity of service or driving up the cost of electricity.
Consider this: low-income households spend three to ten times more on energy (as a percentage of income) than the average customer. Every dollar saved on overall energy expenses can have a larger impact on a low-income household’s quality of life.
Near-term decisions by industry and government leaders will determine the distribution of decarbonization costs and benefits in the years ahead. Helping customers who need it the most comes down to prioritization, programs, and partnerships.
Prioritization
Elevating the well-being of communities through decarbonization won’t happen by chance. It will require prioritizing low-income customers and disadvantaged communities at all stages of technology development and deployment. Take e-mobility. Expanding electric vehicle (EV) adoption in less-affluent communities—as EVs become more affordable and charging becomes more accessible—can lower energy costs and improve air quality. What’s more, electrifying public transportation in these communities also offers benefits such as improved air quality and reduced noise pollution. Beyond transportation, indoor agriculture pilot programs could make nutritious food more accessible to communities in need while growing crops year-round and using up to 90 percent less water.
Decarbonization is about more than adopting new technologies. Advancing efficiency of existing buildings and using electricity in place of other fuels—such as for certain heating needs—can help meet carbon goals while delivering clear customer benefits.
Programs
U.S. electric and gas utilities invest approximately $6 billion in energy efficiency programs annually. We can stretch these dollars further by reimagining program development. Taking a fuel-agnostic approach to energy efficiency, improving existing buildings, and addressing landlords’ and tenants’ “split incentives” can be critical to delivering more customer value.
Further could also mean stretching dollars toward the “middle mile,” where utilities can help close the digital divide by expanding grid modernization programs to address Internet access, potentially including broadband. More than 40 percent of households earning less than $30,000 a year don’t have broadband access. Broadband is key to helping more households participate in certain demand-response programs to lower energy use and grow flexible load. At the same time, more flexibility allows more integration of low-carbon resources, furthering the transition to a cleaner energy grid.
Partnerships
Strategic partnerships are helping close the equity gap. Large-scale affordable housing projects are incorporating community solar to reduce emissions and lower energy costs. Indoor agriculture demonstrations are exploring opportunities to evolve the energy input that can make indoor farming more economical to reach more communities in need. And research into the air-quality impacts of electrification is quantifying improvements for disadvantaged communities. This progress is commendable, but there is more to be done.
Many potential solutions are rooted in complex energy policy. The costs are real, and the design details matter. Economic and climate policy design modeling, coupled with customer engagement, can help identify risks and inform effective policy. As state and federal decision-makers grapple with how to best reduce emissions, sector leaders have an opportunity to leverage resources and experiences regionally, while engaging with residents and community organizations locally. Together, all stakeholders can better understand a community’s unique needs while informing the development of a cleaner, more resilient energy system nationwide.
Addressing equity and environmental justice is core to the electric sector’s customer focus and EPRI’s mission. We are advancing this important conversation through our Electrification 2021 Virtual Forum Series, focusing on accelerating e-mobility (from June 7–10) and driving affordable, equitable, and resilient decarbonization (from June 28–30). Registration information is available at Electrification2021.com.
Though the electric sector is an early leader in decarbonization, greater regional progress can be enabled by the electrification of transportation to buildings and industry. Through collaborative R&D and industry-level coordination, we can identify and advance solutions benefiting customers and the environment—securely, reliably, and affordably. Together we can drive clean energy solutions that help all communities flourish.
