Episode 147 | Choice Champions | Joule Assets
In past episodes we’ve discussed options for energy customer to choose their electric plans (OhmConnect & Green Mountain Energy). These two plans were available in Texas, which has a “deregulated energy market.”
New York is also deregulated, and offers similar plans (ESCOs). A provision in the state constitution gives municipalities the power of “Home Rule.” For electric plans, entire communities can elect to switch to a provider.
My guest, Joule Assets (operating as Joule Community Power) are one of the companies in the state offering “Community Choice Aggregation (CCA)” for these communities. CEO Jessica Stromback says they have signed up 49 communities with nearly a million residents since 2021.
“That creates a huge at-scale uplift for the entire industry,” says Jessica, referring to the renewable power sector. In order to “purchase renewable energy,” Joule and others purchase Renewable Energy Credits (RECs) for every megawatt-hour of energy consumed. This way, a customer does not have to physically consume electrons generated from a renewable plant. Instead, they are creating the market for the energy.
A CCA does not take the choice away from a customer. Customers can opt-out of a CCA in their community, or may have already made a choice. Jessica says 85% of New York households have not made a choice, and the CCA would apply to them. She says this gives solar developers both “offtake security” and “churn security.” Contracts sold household to household will drop off over time as people move or opt-out. She says CCAs keep the numbers up over the duration of the contract, 20-25 years.
Jessica says they are now working with officials to contract renewable energy credits with solar developers before a plant has been built. “That will give them offtake security prior to them putting a single shovel in the ground,” she says.
Joule is also hoping to physically develop projects in the communities that have opted in to the CCAs. This would result in investment, RECs, and job development in these communities. Joule is also planning to expand these plans outside the Empire State.
“It doesn’t only work in New York. It could work in many states in the U.S.”
Useful Links: