Overcoming Obstacles: Empowering Marginalized Communities in the Realm of Grid Technology and Renewable Energy

Authored by Jackie Omotalade, National Climate Investments Director

As the Climate Investments National Director at Dream.Org, one of my focuses rests on unraveling the complexities of grid technology, renewable energy, permitting reforms, and the significant hurdles obstructing historically marginalized communities from accessing these transformative resources. Some states have pursued efforts to overcome these obstacles, but we finally have meaningful federal policy seeking to drive change via the Invest in America agenda which includes the Bipartisan Infrastructure Law, the Inflation Reduction Act, the CHIPS and Science Act, and the American Rescue Plan. The Inflation Reduction Act (IRA) in particular has introduced a groundbreaking initiative, the Greenhouse Gas Reduction Fund (GGRF), as a pivotal tool for driving equitable climate solutions.

This substantial $27 billion fund, administered by the Environmental Protection Agency (EPA), is specifically geared towards expediting the implementation of clean energy projects in regions that have historically been overlooked in the transition to cleaner energy sources. The GGRF is strategically tailored to provide crucial financial backing to entities such as nonprofit lenders, states, municipalities, and Tribal Governments. These funds are directed towards green projects that have struggled to get off the ground due to systemic racism, perceived risks, and other inequities in underserved communities burdened by poverty and pollution. 

However, the success and impact of GGRF and the entire suite of bills in the Investing in America agenda won’t be fully realized without a resilient grid.  A robust and adaptable grid infrastructure is vital for these projects to thrive. The grid serves as the backbone, facilitating the transmission and distribution of renewable energy generated by these projects. By integrating clean energy sources into the grid, these projects not only reduce emissions but also contribute to the stability and reliability of the energy network. This alignment is crucial to ensuring the effectiveness and scalability of GGRF initiatives.

Moreover, these endeavors are expected to yield multifaceted benefits beyond emission reductions. Anticipated outcomes encompass tangible energy savings, the creation of employment opportunities, stimulation of business growth, improved reliability, and even improvements in public health. Remarkably, almost 70% of the GGRF funds are designated to directly benefit low-income and disadvantaged communities. This significant allocation of $27 billion is anticipated to catalyze the mobilization of additional capital amounting to hundreds of billions, reinforcing the drive toward achieving our country's ambitious 2050 net-zero emissions goal more equitably and inclusively.

Earlier this month, I attended the Northwestern Electricity Dialogue on "Resilience, Reliability, and Regionality in the Western Interconnect: Bringing It Altogether," held in Park City, Utah. The dialogue brought together regulators, thought leaders, and industry executives in a small-group, deep-dive setting, creating knowledge-sharing opportunities among public service commissioners, industry executives, and representatives from federal agencies. Discussions revolved around challenges confronting the electricity systems in the Western states' electricity Interconnection including weather extremes, electrification, decarbonization, and the development of electricity markets, among others. The event aimed to shed light on what was happening and how to address shared challenges. The attendees included the Commissioner from the Public Utility Commission of Texas, the Chief Commercial Officer from Boardwalk Pipeline Partner, LP, the Executive Director of System Ops from PJM Interconnection, the Executive Vice President and Head of Competitive Markets and Policy from NRG, the Director of Regulatory Affairs, Commercial Gas and Power from ConocoPhillips Co, and the General Counsel from the U.S. Department of Energy. 

There exists a multitude of obstacles impeding the democratization of energy, underscoring the vital necessity to overcome these hurdles for an energy landscape that is fair and enduringly sustainable. Energy democratization refers to the equitable and accessible distribution of energy resources and technologies among all communities, ensuring that everyone has fair and inclusive access to clean and sustainable energy solutions. 

Understanding the Grid

The grid is not a monolith, but comprises many regions, stakeholders, regulators, and managing entities intertwined to varying degrees. Its many components include an intricate web of hardware, software, and services vital for reliability, resilience, and accessibility in the energy landscape. Despite its transformative potential, significant barriers obstruct its reach into historically marginalized communities, impeding progress toward energy democratization. 

Renewable Energy Integration

While renewable energy sources promise a cleaner future, barriers persist in integrating them into the broader energy framework. Challenges such as limited financing, technical expertise, and geographic concentration of projects leave marginalized communities at a disadvantage. When projects do overcome those hurdles, it can still take years for them to be connected to the grid.  Bridging this gap is pivotal for the equitable distribution of renewable energy benefits.

Fossil Fuels and Environmental Justice

The reliance on fossil fuels exacerbates existing disparities, with their operations often situated close to marginalized communities, leading to health issues and environmental degradation. Transitioning away from fossil fuels necessitates addressing socio-economic challenges faced by these communities, making it integral to achieving environmental justice.

Barriers to Democratization

1. Financial Inequity: Limited financial resources hinder historically marginalized communities from investing in renewable energy projects, primarily due to high upfront costs and restricted access to capital. Over time, this can lead to even greater energy burdens for communities as they become the greatest proportion of financial contributors to the traditional grid infrastructure.
2. Technical Knowledge Gap: The complexity of grid technology and renewable energy forms a knowledge gap, impeding community-driven initiatives. Empowering communities through education and technical capacity building is crucial for active participation in the energy transition.
3. Permitting Challenges: Despite ongoing reforms, the permitting process poses hurdles for community-led projects, leading to delays and bureaucratic obstacles that hinder progress, especially in resource-constrained areas.
4. Infrastructure Gaps: Inadequate infrastructure, such as grid connections, storage facilities, and transportation networks, impedes the feasibility of sustainable energy initiatives in historically marginalized communities.

Equitable Progress Through Strategic Investments

At Dream.Org, our climate investments drive our vision toward addressing these barriers. Strategic investments not only fuel grid innovation and renewable energy but also actively work to dismantle obstacles hindering historically marginalized communities from fully participating in the energy democratization process.

Conclusion

Navigating the intricate terrain of grid technology, renewable energy, permitting reforms, and the formidable barriers faced by historically marginalized communities demands unwavering dedication. Achieving an inclusive and sustainable energy future necessitates not only technological advancements but also a concerted effort to ensure no community is left behind in the transition toward a brighter, cleaner future.