Energy cooperatives bring together like minded commercial customers to provide reliable, cost-effective demand response resources. Based on a group load curtailment, these cooperatives are powerful examples of partnerships between commercial businesses and their utilities, working together to alleviate peak constraints on utility procurement, transmission, and distribution systems. These cooperatives demonstrate the effectiveness of demand side resources as equal substitutes to more traditional supply side acquisitions.
The first energy cooperative was established in the 1970’s following the oil embargo. Since then, the Energy Coalition has been advocating partnerships between utilities businesses and communities. These cooperatives rely on the power of the group to work together during critical periods to reduce overall group energy consumption, thus “unloading” the utility of the need to produce a portion of its highest cost and dirtiest electricity.
Throughout this period, The Energy Coalition has built thirteen energy cooperatives with businesses and utilities in California, New York City, Chicago, Boston, Gothenburg and Stockholm. Our most recently established energy cooperative is the Bay Area’s Business Energy Coalition and we are beginning work with partners in Irvine to develop a cooperative there.
The key to these cooperatives is member businesses working together to shed critical peak loads when called upon by serving utilities. Further, by providing financial incentives for their successful participation in the program, these cooperatives have been able to reduce load at costs far less than the utility’s purchase price for electricity during critical periods. This activity creates profound peer-to-peer exchanges within the coalitions so members become attuned to broader opportunities of energy management that save energy and money, while alleviating the utilities’ peak capacity problems.
For more information on energy cooperatives or if you are interested in partnering with The Energy Coalition to create a cooperative please contact us at (949) 701-4646 or info@energycoalition.org