Quick Fact – OPALCO’s Energy Future Strategy
OPALCO is predicting approximately a 30% increase in electricity usage in the next 20 years. OPALCO must plan for that growth to ensure safe and reliable power for the community. There are many considerations for our future power supply – for example, the hydropower system that has been supplying the region with low-cost energy is reaching capacity and new power sources are not being built fast enough to keep up with demand.
As the community grows, the local demand will exceed our Tier 1 allocation, and the additional electricity must be purchased at significantly higher market prices, known as Tier 2 power. Increasing demand from electric vehicles, data centers, and regional population growth coupled with clean energy mandates is resulting in higher energy costs throughout the region.
OPALCO has been promoting energy efficiency and renewable energy in homes and businesses through on-bill financing (Switch It Up) and rebates. More than $36M in local efficiency investments have helped offset load growth and delayed the need to purchase the more expensive Tier 2 electricity.
OPALCO will continue look for ways to minimize power costs by:
- Applying for more federal funds to invest in efficiency, conservation, and individual renewable energy projects through Switch It Up.
- Encouraging co-op members to have rooftop solar and battery storage on their homes and businesses.
- Developing utility-scale community solar projects as funding is available, including an agrivoltaics project at Bailer Hill.
- Encouraging the modernization of the San Juan County permitting framework for renewable energy projects.
- Continuing to look for grant funding that supports these priorities.
- Educating co-op members about the regional energy supply and OPALCO’s long term planning strategies.
Conservation, energy efficiency, and cost-effective local resources are what will help keep power costs down. OPALCO wants co-op members to have the tools they need for an energy efficient and affordable energy future.
