Stronger Focus on Equity Can Improve Energy System Reliability – New Report

(Washington, D.C. – September 28, 2022) Robust community engagement and changes in the decision-making processes of government agencies would result in more reliable and equitable energy systems that better meet the needs of all Americans, according to a new report.

The report, Embedding Equity into Energy Regulatory Decisions, was prepared by Applied Economics Clinic on behalf of Environmental Defense Fund. Energy companies are exploring a wide variety of solutions to the risks from climate change, but those solutions will not be credible unless they include the specific needs of vulnerable communities – which are already bearing a disproportionate burden from climate change. Putting equity at the heart of decision-making will lead to better energy systems for all. The report analyzes the links between energy system reliability and equity issues and assesses how a wide variety of regulators should best account for equity when making decisions.

“Reliability and equity are the co-foundations of a high-quality energy service. Energy projects need both to be successful,” said Jolette Westbrook, EDF’s Director of Equitable Regulatory Solutions. “Our new report has recommendations to help public service commissions, government agencies and grid operators create energy systems that can address the challenges of climate change and provide fairer, more reliable service for all their customers.”

The report lays out six pillars of energy system planning: equity, reliability, resiliency, affordability, safety and sustainability.

The report then lays out eight developments where failure to address inequity could undermine those pillars:

• Accelerating climate change impacts and worst-case scenarios
• Greenhouse gas emission reduction requirement
• Increasing penetration of renewable energy and energy storage
• Increasing amounts of distributed energy resources
• Energy efficiency potential
• Increasing level of electrification
• Volatile gas prices and flat gas demand
• Meaningful, influential, and inclusive community engagement 

The report explores recommendations to address those developments by enhancing equity measures – such as adding considerations of income levels to programs that provide incentives for buying solar panels and batteries, increasing investment in mass transit, and considering the effects of expected climate damages like coastal flooding on under-resourced communities. The report also looks at how strengthening equity can help avoid mistakes. For instance, using reliability as an argument for creating new, highly-polluting infrastructure – already a controversial idea in the face of renewable sources that are getting cheaper and the acceleration of climate change – becomes much less convincing when inherent inequities are considered and addressed.

“Better reliability does not need to come at the expense of equity, and vice versa,” said Westbrook. “Community engagement and inclusive decision-making can help ensure we create fair, cost-efficient energy systems for vulnerable communities,” said Westbrook.

You can read the full report here.