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Courtesy of RMI.
By Max Lainfiesta, Nathaniel Buescher, & Michael Liebman 

Income inequality is palpable on the streets of the United States in cities and towns alike. On one block you may have neighborhoods with maintained roads and sidewalks, well-funded schools, and easy access to services including grocery stores, transit, healthcare, and banks. And on the next block you may have neighborhoods in transit or food deserts with vulnerable key infrastructure including streets, schools, and healthcare.

This checkerboard-like phenomenon becomes ever more apparent after a disaster, as communities with less resources wait, often literally in the dark, while construction crews and vehicles go first to the areas with more.

This was especially visible in Puerto Rico after Hurricane Maria, which struck four years ago on September 20, when communities endured the longest power outage in US history. Public aid for many lower- and middle-income communities was both insufficient and slow. That is why RMI and partners* formed the Puerto Rico Community Energy Resilience Initiative (CERI).

CERI’s goal is to advance access to reliable and renewable energy for critical facilities in low-to-moderate income communities using solar plus storage microgrids. Under a broader definition of critical facility, examples include hospitals and fire stations, local life-sustaining businesses, and non-profits providing essential services following disasters.

The CERI team spent a year working on pilot projects, community engagement, and financing vehicle development. In the end, the team found that a community-driven process combined with flexible capital and technical assistance is the most effective way to help achieve energy resilience for those whose needs are not served in the current market.

The CERI team on site at one of the critical facilities: Farmacia Jomari in rural Puerto Rico. During power outages after Hurricane Maria, the pharmacy provided critical health & financial services to local community members.

Putting All Communities in the Driver’s Seat

CERI puts Puerto Rican communities that received limited aid after disasters in the driver’s seat. The team does this by first listening to community stakeholders and then addressing their energy resilience needs by preparing and de-risking the project. CERI then uses a blend of capital from financial institutions and philanthropic organizations to advance access to reliable and renewable energy.

Currently, the CERI team is installing four pilot projects at critical facilities: two nonprofit organizations and two local businesses, with systems averaging approximately 63 kW of solar and 30 kWh of storage. The pilot projects highlight the importance of community ownership of systems, flexibility in designing a project’s financing, and timing for engaging different stakeholders.

When microgrid projects are locally owned, community members autonomously create their energy goals while simultaneously bolstering local economies and jobs. Facility leaders can determine which equipment and operations must continue during an outage based on their own experiences. This bottom-up involvement shifts accountability from external programs to the community itself.

Flexible Financing Adapts to Community Needs

It is crucial to have financing models that are scalable yet able to flex to individual project constraints. The CERI team will soon launch a financing vehicle which will provide critical facilities throughout the island with concessionary capital and technical assistance needed to simultaneously make systems more affordable and make financing viable.

Operationally, this equates to a lower interest rate and a shorter term on the loan used to pay for the facility’s microgrid. This grant funding contributes to the system’s down payment and to the creation of a loan loss reserve for financial institutions to allow facilities with varying credit histories to access competitive interest rates.

The CERI team’s initial vision was to award a project with an amount of grant funding so that the microgrid’s estimated monthly costs over a 10-year period would be less than the facility’s average monthly energy bill. Monthly costs include loan payments, maintenance, insurance costs, and fixed fees to the utility.

Although some facility staff prioritized the lower monthly energy costs, other facility managers were willing to pay more to reduce their loan term. Such scenarios highlighted the need for the CERI team to work with financial institutions to offer flexibility in the loan’s terms and/or payment options that do not penalize early payments.

Syncing Timelines of Multiple Stakeholders

From a timeline perspective, as the CERI team scales up, the team will ensure to use an inclusive and fair process for project recruitment and selection. This includes engaging with all types of communities (rural and urban, for example) and maintaining transparency with interested facilities.

Once projects are selected, CERI team members will be diligent to engage all the project’s stakeholders early in the project development process and use a competitive process whenever possible to find savings for the participating organizations. Such stakeholders include local financial institutions, local microgrid developers, and critical facility staff. These stakeholders have varying amounts of staff available to focus on a specific microgrid project and differing due diligence and review processes.

For example, financial institutions assess the facility’s financial history, developers build systems based on the facility staff’s requirements, and the facility staff decide whether to take a loan depending on costs and loan terms. If not lined up properly, these timelines translate into time-consuming due diligence processes and rounds of negotiation that can lead to delays in a project.

The Right System for Each Individual Need

Facilities have greatly varying needs differing on the types of electricity services, electricity rates, and on how and when they use energy. Therefore, technical assistance on energy modeling, system sizing, energy efficiency analysis, and procurement support is key to ensure that each facility has the right system and best price for its specific needs.

For example, a therapy and rehabilitation center may use power mainly during weekdays while a supermarket may require a steady energy supply 24 hours a day, seven days a week, 365 days a year. In the event of a prolonged power outage, facilities have very different critical load needs — while some facilities may be able to operate with 25 percent of the usual energy supply, others may require 50 percent or more. Time of use and critical load size have significant implications when designing battery size.

There are also physical constraints that affect project design. Some facilities may have a structurally sound roof that has enough space to accommodate the system, while others may not have enough roof space or may need significant repairs to accommodate a solar system. And some facilities may need ground-mounted systems that increase the system costs (ground mounted systems of this size are often more expensive than roof mounted systems based on the additional construction needed).

In most cases, facility owners and or administrators lack the experience and background needed to know if the system is right for their needs, if the price is appropriate given the market, or if the equipment meets the local requirements. With technical assistance, facilities can get the right system at the right price, and are likely to share their positive experiences with colleagues. This will lead to grassroots scaling of renewable energy in communities in Puerto Rico and beyond.

 The Importance of Capacity Building

Maintenance is key to the sustainability of these systems. Building the capacity to check the system, use pre-contracted O&M and warranties, replace parts as needed, and ensure continuous safety and system operation is essential. Through a CERI-specific capacity building plan, facility owners and administrators gain the knowledge required to understand the technical aspects, financials, and overall implications of acquiring and maintaining a solar-plus-storage microgrid.

What’s Next for CERI?

The CERI team is preparing a transition to a next phase of demonstration projects across Puerto Rico. This work will set the stage for the full implementation of a scaled-up financing vehicle where hundreds of facilities will benefit from affordable and resilient solar-plus-storage microgrids.

These microgrids will provide stable energy prices, savings from day one, the ability to continue providing essential services in the event of an emergency, environmental benefits, and ultimately, community resilience and wellness. They will enable all community members to receive critical services such as health care, food, water, and communication when needed most.

If you are interested in learning more, please contact us at CERI@rmi.org.

* CERI was founded by The Rockefeller Foundation; RMI; Fundación Comunitaria de Puerto Rico; The Puerto Rico Science, Technology, and Research Trust; the Association of Renewable Energy Consultants and Contractors for Puerto Rico; and Resilient Power Puerto Rico.

Featured photo by Wei Zeng on Unsplash

 

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Volkswagen is about to unveil its most affordable electric SUV

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Volkswagen is about to unveil its most affordable electric SUV

With just a week left until its official debut, Volkswagen is giving us a sneak peek of its most affordable electric SUV, the ID.2. Here’s our closest look at the new entry-level EV.

The Volkswagen ID.2 is an affordable electric SUV

Volkswagen is revamping its electric car lineup with a new family of entry-level models, starting with the ID.2. The ID.2 is an electric hatch that VW promises is “spacious like a Golf,” yet still “affordable like a Polo.

With a starting price of around € 25,000 ($29,000), the ID.2 will be among the most affordable electric cars on the market.

Shortly after launching the electric hatch, Volkswagen is set to introduce an SUV version of the ID.2, which could be an even bigger hit. The ID.2 SUV will sit below the ID.3 and ID.4 in Volkswagen’s EV lineup as an even more affordable crossover SUV option.

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Although we’ve seen the hatch out testing a few times, the SUV version has been mostly kept under wraps outside of a blurry image from December 2023. That is, until now.

Volkswagen’s design boss, Andreas Mindt, offered a closer look at the ID.2 SUV on Monday, releasing a few new teasers. The images reveal a sleek new look from its current ID models, closer in style to the updated T-Roc, which was unveiled last week.

Mindt said the “design speaks for itself.” The ID.2 and SUV versions will be based on a new MEB+ platform, which will underpin Volkswagen’s upcoming lineup of entry-level EVs.

Volkswagen-most-affordable-electric-SUV
Volkswagen ID.2X electric SUV (Source: Volkswagen)

The hatch will be offered with two battery pack options: 38 kWh or 56 kWh, offering a WLTP range of up to 280 miles. Volkswagen has yet to reveal final prices and range for the SUV version.

According to VW’s tech development boss, Kai Grünitz, the brand’s EV lineup is in line for a major refresh. Grünitz told Autocar that “huge improvements” were coming, including updated styling inside and out.

Volkswagen-ID.2-EV-interior
Volkswagen’s ID 2all EV interior (Source: VW)

The interior will feature the new design, which includes a 12.9″ infotainment and 10.9″ driver display screens and plenty of physical controls. There will also be a few fun added features like the ability to switch between drive modes that resemble Volkswagen classics, like the Golf or Beetle.

Volkswagen-ID.2-EV-interior
Volkswagen ID 2all “Vintage” mode from the Golf era (Source: Andreas Mindt)

Since the ID.4 starts at around 35,000 euros ($41,000) to 40,000 euros ($47,000), depending on the market, you can expect prices to be slightly lower, likely at around 30,000 euros ($35,000).

Volkswagen will unveil the ID.2 SUV next week at the Munich Motor Show on September 7. The German auto giant claims the ID.2 SUV “is another important step towards bringing affordable electric mobility to the masses.” It’s expected to hit the market next year following the hatch version. We’ll learn more at the event.

Although the ID.2 is not expected to be sold in the US, Volkswagen’s current SUV, the ID.4, is actually already one of the most affordable electric SUVs. Volkswagen is currently offering ID.4 leases as low as $129 per month. That’s even cheaper than a Jetta.

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An Iowa nuclear plant is the next contender to restart, spurred by AI data center demand

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An Iowa nuclear plant is the next contender to restart, spurred by AI data center demand

The Duane Arnold nuclear plant northwest of Cedar Rapids, Iowa is pressing ahead with plans to restart operations by the end of the decade after shutting down for economic reasons in 2020.

The plant is the third – and likely the last – mothballed reactor in the U.S. that is in shape to come back online to support growing electricity demand in the U.S.

Duane Arnold would follow similar restarts planned for the Palisades nuclear plant in Michigan and Three Mile Island in Pennsylvania, which plan to resume operations later this year and in 2027, respectively, subject to approval by the Nuclear Regulatory Commission.

The Federal Energy Regulatory Commission approved a request last week from NextEra Energy, Duane Arnold’s owner, to let the nuclear plant reconnect to the electric grid. NextEra sees Duane Arnold restarting operations by the fourth quarter of 2028 at the earliest, according to FERC filings.

“While a significant amount of work needs to be done before the facility could be restarted, FERC’s decision is another positive step in the process,” Neil Nissan, a NextEra spokesperson, said in a statement to CNBC.

Power purchase agreement

With big technology companies looking to feed more nuclear power on to the grid to fuel the electricity-hungry data centers they are building to train artificial intelligence, Florida-based NextEra is aiming to win a lucrative power purchase agreement to restart Duane Arnold. Three Mile Island, for example, is restarting with financial support from a power agreement with Microsoft.

“The recommissioning of Duane Arnold has received significant commercial interest from premier American companies,” Garrett Goldfinger, the NextEra executive in charge of the restart project, told FERC in a late July filing.

Duane Arnold would bring more than 600 megawatts of electricity back to the grid, equivalent to the electricity needs of more than 400,000 homes.

“If we’re successful in bringing Duane forward, that obviously creates a hot bed of data center activity around that facility,” NextEra CEO John Ketchum told investors on the company’s July earnings call.

‘Unicorn opportunities’

Duane Arnold, Palisades and Three Mile Island are three of the 10 U.S. reactors that closed over the past decade as nuclear power strained to compete against cheap natural gas and renewable energy.

Restarting these plants is the most concrete sign yet that the nuclear industry is coming back after years of financial struggles.

“These are unique opportunities because you don’t face the new build costs associated with nuclear,” Ketchum said on NextEra’s earnings call. “These are really unicorn-type opportunities.”

NextEra, the largest renewable power developer in the U.S., had previously divided up Duane Arnold’s grid connection among multiple solar farms that the company was developing in response to the demand in Iowa for lower cost electricity.

But the market last year started to shift back in favor of high-capacity nuclear power as the U.S. saw an unprecedented increase in electricity demand from industry and data centers, NextEra said in its filing to FERC.

NextEra is now consolidating those solar grid connections back into a single one for Duane Arnold after securing FERC approval. This will “provide commercial and financial certainty to support the recommissioning effort and expedite the resumption of clean, reliable operations at Duane Arnold,” Goldfinger told FERC.

Capital intensive

NextEra said the restart of Duane Arnold will be a “highly capital-intensive process.” It disclosed in its filing to FERC that it plans on spending as much as $100 million in 2025 alone on the project.

NextEra has placed orders for new transformers to replace the ones that were removed when the plant was shut down, although the transformers face significant supply chain constraints and will take about three years to deliver. The plant’s cooling towers, administration building and training center were also dismantled and need to be replaced.

The nuclear industry has a long history of projects delays, Goldfinger cautioned, and the Duane Arnold restart could take longer than expected if the transformers, for example, are delivered late.

While there are risks, Duane Arnold represents a financial opportunity for NextEra, the parent company of Florida Power & Light. The stock has barely moved this year despite growing power demand, a sharp reversal from 2024 when shares jumped 18% Since taking office in January, President Donald Trump’s repeated attacks on renewable energy have shaken investor confidence in solar and wind power.

Solar and wind projects will no longer be eligible for two key tax credits after 2027, which is expected to crimp demand for renewables. Duane Arnold restarting in 2028 could help offset some of the lost earnings from the phase out of the tax credits, Ketchum said on the July earnings call.

“You add Duane Arnold to the mix and that’s one of many ways that we have to continue to grow the business in the future,” Ketchum said.

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Labor Day Green Deals hub – EVs, power stations, tools, appliances, more from $38

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Labor Day Green Deals hub - EVs, power stations, tools, appliances, more from

It’s officially Labor Day and we’ve had an exciting few weeks of solid Green Deals leading up to the holiday – and these sales aren’t over yet! Through the rest of the day and further into the week, you’ll find some amazing opportunities to get discounts on EVs, power stations, tools, appliances, and more – and we’ve rounded up all the deals that are still ongoing into this one-stop shopping hub for you. One thing to note, the power station sales may have been deemed as ending before today’s arrival; however, as is often the case, these sales have been extended and/or had their official names changed, so be sure to browse through those for hangover savings. Head below to browse and take advantage of all these ongoing Labor Day savings before they’re gone.

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