California Approves Microgrid Tariffs as Grassroots Groups Push for More Local Control of Energy

Source: Elisa Wood · MICROGRID KNOWLEDGE · | January 15, 2021

Source: By anemad/Shutterstock.com

In a decision likely to be eyed closely by other states, California regulators yesterday approved microgrid tariffs and rules to hasten the deployment and commercialization of the technology.

Approval of the tariffs, as well as accompanying microgrid incentives, followed a year-long effort by the California Public Utilities Commission (CPUC) to enact a state law (SB 1339) that requires regulatory changes to support microgrid development.

California is one of the forerunners in the creation of microgrid tariffs — an approach meant to create a revenue stream for microgrids. Its work is expected to be used as a springboard for other states looking to do the same. 

The commission’s deep dive into microgrids over the last year drew a wide range of participants and nearly 700 filings (Rulemaking 19-09-009). The proceeding took place within the backdrop of power outages related to wildfires and grid issues.

Genevieve Shiroma, the CPUC commissioner who headed the effort, described the final decision as a balancing act “to reduce barriers for the commercialization of microgrids while keeping an eye to ratepayer equity and supporting vulnerable and low-income communities.”

Advocates push for greater local control

But before the vote was taken, the commission’s approach was criticized by several speakers from environmental and community-based organizations, among them the Reclaim Our Power campaign and the youth-led Sunrise Movement, which said the decision favored utility control over local control of microgrids.