Demystifying Equity in California’s Energy Grid Transition

BlogEnergy Equity

Isabella Carreño July 25, 2024

California's transition to a clean energy grid is well underway. From the sun-drenched solar farms of the Central Valley to the wind turbines along the Coast harnessing the sea breeze, the state is taking steps towards the greener future we desperately need. But as we've seen time and time again when it comes to the deployment of clean infrastructure, communities of color and low-income communities are being left behind.

Senate Bill 100 has played a significant role in developing California's clean energy grid, setting the ambitious goal of achieving 100% clean retail energy by 2045. Yet, six years since the enactment of SB 100, clean energy infrastructure remains noticeably absent in communities of color and low-income communities that bear the highest rates of pollution and worst impacts of climate change.

An equitable energy transition is possible, but time is running out. Prioritizing equity in all facets of the grid transition is more critical than ever. This begins with understanding how equity-or the lack thereof-manifests in our current and future grid systems.

How Inequity Became Baked into California's Grid

The absence of clean energy infrastructure in communities of color and low-income communities is not accidental; it is due to legacies of systemic disinvestment, neglect, and inequitable infrastructure policies. For decades, discriminatory policies like redlining meant that wealthier, whiter communities received more resources and investments to support stronger infrastructure, while marginalized communities deemed "less desirable" did not. At the same time, redlined communities were often targeted for harmful infrastructure projects like fossil fuel plants, leading to greater pollution burdens and associated health risks. The negative impacts of fossil fuel power plants that support California's grid, such as peaker plants, are experienced disproportionately by communities of color.

Redlining and other discriminatory policies ultimately created and drove vicious cycles in which neighborhoods that initially received more investments and better infrastructure were considered ideal for continuous investments and infrastructure support, including clean energy technologies, while marginalized communities that faced disinvestment and greater pollution burdens continued to be passed over for new investments. The result we see today is the communities with the highest rates of pollution that would benefit most from cleaner energy, lack the necessary resources and infrastructure to support it. In addition, the energy infrastructure that does exist in marginalized communities is often less reliable and more costly. If the energy transition continues without prioritizing marginalized communities, these inequities will worsen.

Our Current Grid

Communities of color and low-income communities often face the most severe issues regarding grid infrastructure limits and grid resilience. Although power outages affect everyone, communities of color and low-income communities in the United States experience more blackouts and increased durations of outages after severe weather events. A 2021 study in California concluded that grid infrastructure limits, particularly within distribution lines, lead to inequitable access to clean resources such as rooftop solar. Distribution lines-the smaller power lines that take power directly to households and communities-are often the final step in the energy process. The study found that this distribution infrastructure inequality is connected to socioeconomic demographics. Specifically, the study found that Black households and those in other marginalized groups are less likely to have access to solar capacity due to a lack of infrastructure in their communities.

Despite the national racial gap in clean energy technology adoption, emerging technologies such as electric vehicles and data centers have caused electricity demand to rapidly rise, resulting in strain on the state's grid to meet this increasing demand for power. Furthermore, energy demand is expected to increase in the future, especially as California and the wider United States continue to electrify and decarbonize. Grid Strategies, a national clean energy consulting firm, said it best: "The Era of Flat Power Demand is Over."

It is no secret that climate change has brought about rapidly changing weather patterns, including an increase in wildfires and storms. However, the impacts of climate change have had devastating effects on the grid, ultimately causing an increase of power outages. From 2000 to 2023, California experienced 145 major power outages due to extreme weather, with many of them occurring in the later years. Extreme weather strains every part of our dated grid, from the long transmission lines that tower above freeways, to the power generation facilities that produce power at all hours of the day.

In the future, blackouts are expected to increase unless we take considerable action to slow climate change and build a grid that can withstand the strain-a first step to solving these issues without leaving behind the communities in California that are most impacted is investing in an equitable grid transition.

Equity Concerns as California Transitions

California's energy grid will need to significantly change in order to reach the goals set by SB 100, with this change comes concerns about affordability and resilience.

California's Clean Energy Transition Plan, Governor Newsom. (2023)

According to the 2021 Joint Agency Report on SB 100, California will need to construct new clean energy generators and storage at unprecedented rates. As of 2021, California's grid is 59% renewable, highlighting a need for 148,000 GW of renewable energy by 2045. This new buildout is expected to be costly, with the report estimating that it will increase annual electricity system costs by nearly $4.5 billion dollars. In addition, it will be costly to build out and update existing grid infrastructure. The 20 Year Transmission Outlook published in 2022, estimates that California will need more than $30 billion dollars to invest in new and upgraded transmission over the next two decades.

Californians pay some of the highest electricity bills in the nation, so the thought of possibly increasing them is concerning. While clean energy is cheaper overall and California is developing ways to make the energy transition affordable, growing concerns related to affordability are well founded, especially regarding how the energy transition will impact marginalized communities who are already burdened by high rates.

Restructuring the current grid is daunting and requires changes to many familiar systems, particularly for communities dependent on the current system or those especially impacted by the transition due to factors such as employment. These challenges will impact marginalized communities the most, as they already face resilience issues, high energy burdens, and barriers to clean energy. However, by prioritizing equity, we can develop solutions to these barriers and uplift the communities that have been systematically excluded.

Looking to the Future

When it comes to the energy transition, there is still a long road ahead of us. This road is especially challenging for communities of color and low-income communities. Thus, it is imperative to prioritize grid equity in our current and future grid to make energy more resilient, reliable, and clean. Grid equity is the assurance that disadvantaged communities get the same access to reliable energy as wealthier communities. The concept of grid equity is essential, and the energy transition provides a unique opportunity to embed equity into our energy system moving forward. If not equitably prioritized, the energy transition will perpetuate existing energy inequities and further exacerbate inaccessibility to clean and reliable energy in disadvantaged communities.

The energy transition comes with challenges, but it is a necessary step in our journey to a cleaner California. The past few years have brought emerging technologies and policies, such as new distributed energy resources and equity-driven grants to help grid resilience, which help to assure that the energy transition leaves no one behind. However, it is vital to continue to advocate for equity-driven solutions in every aspect of the grid transition.