Passing clean energy bill will secure California’s future

Silicon Valley Leadership CEO Ahmad Thomas believes that passing AB 538 will help Silicon Valley remain competitive.

As the pillar of California’s economy, Silicon Valley is home to the innovative companies and world-class institutions that drive the clean energy and frontier technology solutions of the future. Yet, without establishing access to reliable and affordable clean energy sources that we can turn to during extreme weather events or other periods of record demand, we’re jeopardizing the competitiveness of our region and putting the State’s vital climate goals at risk.

That’s why the Silicon Valley Leadership Group, which represents the innovation economy and its ecosystem, is joining with key business and clean energy stakeholders in support of the Lights On California initiative. Together, we’re advocating for solutions that will enable California to plan for the long-term and overcome challenges to scaling the clean energy supply we need now to realize priorities like transportation electrification and powering the data centers that are the backbone of cloud-based industries.

Specifically, we’re urging policymakers in Sacramento to support AB 538 – a bill that will be considered by the California Assembly Committee on Utilities and Energy this week. AB 538 would enable the current entity that manages California’s electric grid to lead in the creation of a regional transmission organization (RTO) across Western states. RTOs are important because they are best positioned to manage resources and coordinate energy needs across markets. Think less blackouts, and lower energy prices for consumers.

Establishing a Western RTO gives California more affordable options to both achieve our target of 100 percent clean energy by 2045 and prevent the rolling blackouts that imperil both economic growth and public health. It would provide California with much-needed flexibility, saving $563 million in annual energy costs, with greater transparency around energy prices, sources, and related climate emissions.

It’s an unfortunate, but well-established fact that we’re not moving fast enough to achieve the state’s ambitious clean energy target. The state’s own energy experts have shared that we must bring online nearly five times as much new clean energy every year than California has for the last decade to keep us on track.

Failure to join an RTO also runs the risk of isolating California, turning our grid into an energy island – potentially increasing strains on families, schools, and businesses already paying some of the nation’s highest energy prices.

Here’s why this is so urgent: California’s grid nearly brought us to our knees during a devastating 10-day heat wave last September. We squeaked by without widespread blackouts because Californians reduced energy use after receiving an emergency text message from the state while power stored on batteries and imported from out of state kept the grid from failing.

With extreme weather becoming more frequent and intense, we must adapt.

California should consider solutions from beyond its borders. We also know that our neighboring states in the West are prepared to move forward without us if we don’t take action now.

Establishing a Western RTO is the logical next step. California today already imports a third of its power through a real-time energy market with 14 Western states along with parts of Canada and Mexico.

Decarbonizing California’s power grid is going to require an unprecedented investment in energy infrastructure. By passing AB 538, California will have the most options to strengthen our power grid while more affordably transitioning our economy to clean energy over the near and longer term. It’s a win-win for our business competitiveness and climate goals.

Ahmad Thomas is CEO of the Silicon Valley Leadership Group.