The Growth in Community Choice Aggregation: Impacts to California's Grid

The Growth in Community Choice Aggregation: Impacts to California's Grid

Julien Gattaciecca, Kelly Trumbull, and J.R. DeShazo

Communities across California are forming Community Choice Aggregators (CCAs) at a rapid rate since 2010, with over half of them starting within the last two years. County and city governments administer CCAs as local alternatives to investor-owned utilities (IOUs).

The Growth of Community Choice Aggregation: Impacts to California’s Grid, finds that if current growth trends continue, CCAs may serve a majority of California’s power consumers within the next 10 years, transforming California’s retail electricity sector. According to the report, the rise of CCAs has both direct and indirect positive effects on overall renewable energy consumed in California, helping contribute to the state meeting its 2030 RPS targets approximately ten years in advance.

Even with such an important impact on the penetration of renewable energies, CCAs’ effects on the grid have been negligible so far. This is in part because when a CCA starts, it handles the needs of existing electric customers, and often gets power from existing power plants. In the long term, though, CCAs’ impact on the grid depends on their energy procurement strategies and their local investments.