Banding Together: How Aggregation Helps Cities Buy Renewables at Scale
By Yuning Liu & Mia Reback
In March 2021, 24 local governments in Maryland joined together on a plan to purchase enough renewable energy to power more than 246,000 homes a year. They did this by issuing a joint request for proposal (RFP) through the Baltimore Regional Cooperative Purchasing Committee (BRCPC) to seek a supply of up to 240,000 MWh of renewable energy starting in 2022. This large-scale transaction was made possible by an energy procurement approach known as energy aggregation, which is a way for two or more buyers to purchase electricity from a utility-scale generation facility.
According to the new Intergovernmental Panel on Climate Change (IPCC) report, greenhouse gas emissions (GHGs) must peak within four years to limit global warming to 1.5°C, and cities have a critical role to play in meeting that target. Aggregation can be a powerful way for cities to rapidly increase their renewable energy and help decarbonize local economies at the necessary speed and scale. Yet most cities have not pursued aggregation due to an inadequate understanding of its novel deal structure and a lack of tools and resources to help streamline the process.
Aggregation can be a powerful way for cities to rapidly increase their renewable energy and help decarbonize local economies at the necessary speed and scale.
To help cities overcome these barriers, last year the American Cities Climate Challenge Renewables Accelerator, an initiative co-led by RMI and World Resources Institute, began organizing a Large-Scale Renewables Aggregation Cohort. This cohort provided technical assistance to more than 30 organizations, including the BRCP. A second iteration of the cohort is now underway with a new group of organizations. In addition, a newly released RMI report, Procuring Large-Scale Renewables through Aggregation: A Guide for Local Governments aims to help more cities understand and pursue aggregation.
As more and more cities take actions to decarbonize the electricity system, aggregation will be an increasingly important option that can provide buyers with several advantages, such as opening doors for smaller cities, creating positive network effects, and unlocking more cost savings.
Enabling Smaller Buyers to Access Large-Scale Projects
Aggregation can enable participation from smaller cities that, on their own, are not able to purchase enough electricity to warrant the attention from developers. This is particularly important for smaller communities with 100 percent renewable energy goals, as most municipalities cannot supply 100 percent of their electricity needs with on-site solar generation alone. Therefore, a utility-scale, off-site procurement will be an essential component of many smaller buyers’ decarbonization strategy.
One instance of a small buyer accessing large-scale renewables projects is a 25 MW joint solar purchase completed by MIT, Boston Medical Center (BMC), and Post Office Square (POS) in 2016. In this aggregated deal, MIT committed to buy 73 percent of the power generated by the new array, with BMC purchasing 26 percent and POS purchasing the remainder.
“Entering into a renewable power purchase agreement was our next step, but our consumption is too small to do it alone,” said Pamela Messenger, general manager of Friends of POS. “It is exciting to join forces with two industry leaders, allowing us to mitigate 100 percent of our electricity footprint.”
Similarly, other smaller local governments have also used aggregation to gain access, such as five local governments in Maine. They teamed up for the state’s first multi-town renewables project, a 4 MW solar array, which provides climate benefits equivalent to more than 4,000 acres of forests.
Without pooling the electricity demand with other buyers, smaller cities would not be able to access utility-scale projects on their own, making it difficult to reduce their carbon emissions efficiently.
Creating Knowledge-Sharing Opportunities
By joining together, cities can not only aggregate their buying power but also pool their knowledge to streamline procurement processes. The shared experience among participants can generate positive network effects, including increased mentorship, increased credibility, and support for inexperienced buyers.
For example, the City of Nashville partnered with Vanderbilt University last year to purchase electricity from a 125 MW solar project as part of the Tennessee Valley Authority’s Green Invest program. This public-private partnership allowed the city to leverage the expertise of the University’s Large-Scale Renewable Energy Study Advisory Committee to identify the best risk mitigation strategy.
According to Susan R. Wente, interim chancellor of Vanderbilt University, “We want this partnership to serve as a model of collaboration that other organizations within our region and beyond can replicate to make long-term, lasting changes to protect our shared environment.” In fact, the connections formed within the aggregation group have garnered national media attention and are sending a powerful signal to utilities, policymakers, and developers that local governments are serious about rapidly decarbonizing the electricity system.
In addition, a group of buyers can also share external lawyers, accountants, or consultants. For instance, 15 Pennsylvania municipalities and public entities, which also participated in the Renewables Accelerator’s Large-Scale Renewables Aggregation Cohort, have teamed up to investigate the viability of investing in a joint solar deal. The 15 entities issued a joint RFP for energy consultants in May 2021 to share external advisory services.
Unlocking More Cost Savings
Throughout the collaborative process, aggregated deals can produce various cost savings because they enable cities to achieve greater economies of scale by combining the renewable energy demands of multiple buyers.
For example, a National Renewable Energy Laboratory analysis estimates that procuring 100 MW of solar instead of 5 MW can reduce development costs by 24 percent. This can lead to cost savings in the form of lower power purchase agreement prices for all buyers, regardless of size.
In another case, the company Enel X, which is working with the BRCPC on a joint purchasing strategy, found that renewable energy projects typically must be over 20 MW in size to be economical. The company discovered that aggregation is one way for smaller buyers to participate in large projects.
In Florida, 12 cities joined together to form the Florida Municipal Solar Project. They are developing 372.5 MW of zero-emissions energy capacity, enough to power 75,000 Florida homes. According to Jacob Williams, CEO and general manager of the Florida Municipal Power Agency, “By working together, our cities are able to provide clean power to their communities in a cost-effective way.” Clint Bullock, Orlando Utilities Commission general manager and CEO, explained, “We can leverage the economies of scale to bring the price of solar down to a point where a dozen municipal utilities can afford to sign on and I believe this is something people around the country will take notice of.”
Better Together
As more cities set goals to transition to renewables, aggregation is democratizing clean energy access by enabling participants, especially smaller buyers, to collectively develop significantly larger renewables projects than any one buyer would be able to access individually. The partnerships can create positive network effects through knowledge sharing and inspire other organizations within the region to replicate the collaboration model. By unlocking more cost savings, aggregated deals provide a lower-cost mechanism for cities to achieve climate goals efficiently.
The new IPCC report underscores the urgency of decarbonizing the electricity system and reducing GHGs. To play their part, cities need to increase the pace and scale of renewable energy procurement. Although aggregation is still a relatively underutilized procurement method, this approach is crucial to help them do that.
Procuring Large-Scale Renewables through Aggregation: A Guide for Local Governments helps walk local governments through the aggregated procurement process step-by-step and links to other key tools and resources relevant to each stage.
Cities must act now to curb greenhouse gas emissions. The best path forward involves engaging all actors and ensuring a more promising economic structure for a wide array of purchasers. In the battle against climate change, it is better to aggregate than to go it alone.
Article courtesy of RMI.
Enbridge, a Canadian energy company, just announced it’s moving forward with an 815-megawatt (MW) solar project called Sequoia in Texas. When it’s done, it’ll be one of the largest solar farms in North America. The project’s price tag is a hefty $1.1 billion.
Enbridge’s Sequoia, around 150 miles west of Dallas, has already landed long-term power purchase agreements (PPAs) with AT&T and Toyota, ensuring most of its output is sold for years to come. This deal was highlighted in Enbridge’s third-quarter report on Friday.
Sequoia will be built in two phases, with power expected to start flowing in 2025 and 2026. Enbridge says it’s taken steps to reduce risks by securing equipment and procurement contracts in advance. Permits and purchase orders are also locked down.
Toyota’s PPA with Enbridge’s Texas solar project is part of Toyota’s broader push toward sustainability, as the automaker aims to achieve net zero by 2035 and match 45% of its purchased power with renewable electricity by 2026 as it still clings to its “diverse powertrain strategy.”
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
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Environment
NIO’s EV sales top 20,000 for the sixth straight month as new low-cost SUV shows promise
With its new electric SUV rolling out, NIO’s (NIO) sales topped the 20,000 mark again in Oct, its sixth straight month hitting the milestone.
NIO sold 20,976 vehicles last month, up 30.5% from October 2023. The NIO brand sold 16,657 vehicles, while its new “family-oriented smart vehicle brand,” Onvo, contributed 4,319 in its first full sales month.
After launching its new mid-size Onvo L60 electric SUV in September, NIO said production and deliveries are steadily ramping up.
At the end of October, NIO’s Onvo had 166 Centers and Spaces throughout 60 cities. Onvo plans to continue expanding its network to drive future growth.
NIO’s new electric SUV starts at around $21,200 (149,900) and is a direct rival to Tesla’s Model Y. The base $21K model is if you rent the battery. Even with the battery included, Onvo L60 prices still start at under $30,000 (206,900 yuan), with a CLTC range of up to 341 miles (555 km). That’s still less than the Model Y.
Tesla’s Model Y RWD starts at around $35,000 (249,900 yuan) with 344 mi (554 km) CLTC range in China.
NIO’s new Onvo brand drives higher Oct sales
NIO has often compared its new electric SUV to the Model Y, claiming it’s superior in many ways. The L60 has better consumption at 12.1 kWh/100km compared to the Model Y at 12.5 kWh/100km).
With a longer wheelbase (2,950 mm vs 2,890 mm), NIO’s electric SUV also provides slightly more interior space.
Despite the L60’s success so far, NIO believes its second Onvo model will be an even bigger hit. It could be a potential game-changer.
“If you think the L60 is good, then this new model is a much more competitive product,” NIO’s CEO William Li told CnEVPost after launching the L60. Onvo will launch a new EV every year. Following the L60, Onvo will launch a new mid-to-large-size electric SUV next year.
NIO’s leader claims the new model will be revolutionary. According to Li, it will offer even more surprises than the L60. Deliveries are planned to begin in Q3 2025.
| NIO Onvo L60 vs Tesla Model Y trims | Range (CLTC) |
Starting Price |
| NIO Onvo L60 (Battery rental) | 555 km (341 mi) 730 km (454 mi) |
149,900 yuan ($21,200) |
| NIO Onvo L60 (60 kWh) | 555 km (341 mi) | 206,900 yuan ($29,300) |
| NIO Onvo L60 (85 kWh) | 730 km (454 mi) | 235,900 yuan ($33,400) |
| NIO Onvo L60 (150 kWh) | +1,000 km (+621 mi) | TBD |
| Tesla Model Y RWD | 554 km (344 mi) | 249,900 yuan ($34,600) |
| Tesla Model Y AWD Long Range | 688 km (427 mi) | 290,900 yuan ($40,300) |
| Tesla Model Y AWD Performance | 615 km (382 mi) | 354,900 yuan ($49,100) |
Local reports suggest a six-or seven-seat electric SUV could hit the market even sooner. With rumors of a launch around Q1 2025, deliveries could happen as soon as May 2025.
According to sources close to the matter, the L60 is just a “stepping stone” with even more exciting EVs on the way. The source claimed the new six-seat option will start at around $42,100 (300,000 yuan).
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Velotric Ebikes are designed by some of the most brilliant minds in the business. And now, you have the opportunity to own one (or two!) of these high-performance, elegant, reliable rides. You won’t want to miss these fantastic early-bird Black Friday deals running from November 1-14, and, also get a sneak peek at special offers that start on November 8.
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Velotric Black Friday deals – give to get back
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Velotric Discover 1 Plus Ebike
The Velotric Discover 1 Plus Ebike is a fantastic commuter bike that’s designed for comfort. (Plus, it’s kinda fun that it comes in five color choices.) If your commuting route is a bit more challenging, then the Discover 1 Plus might be the right fit for you. It features a rear light with braking high-beam, a 60 Lux front light, and double hydraulic disc brakes for extra safety. Plus, Velotric rigorously tests its frames 150,000 times under tough conditions for quality assurance.
This commuter e-bike that rides like a cruiser has a pedal assist range of 65 miles and throttle range of 58 miles on a 900W peak motor that generates 65 Nm of torque.
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Velotric Go 1 Ebike
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From kids to cargo, the Velotric Packer 1 Ebike was designed to haul it all! The Packer 1 features Velotric’s proprietary Velopower H75 Drive System, which provides a range of up to 52 miles on pedal assist up to 25 mph (unlocked) with a 750W motor.
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Don’t forget to use Velotric’s exclusive code for Electrek readers of Electrek20 at checkout to get an additional $20 OFF!
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