The WRI U.S. Polsky Energy Center supported cities, counties and local institutions in two U.S. states in purchasing clean energy. In Massachusetts, a consortium of 11 local institutions spurred development of 408 megawatt (MW) of new renewables, while in Pennsylvania, a new 22 MW solar array will be installed to power nearby cities and towns.

The Challenge

Local governments across the United States are setting and making progress toward clean energy goals. Yet many — especially smaller cities and towns — face challenges in accessing renewable electricity for their operations. Constrained budgets, staffing and expertise are one barrier; restrictive state policies and limited utility offerings are another.

One strategy to overcome these issues is buyer-led aggregated procurement. Through this approach, two or more local governments (or other stakeholders, such as public institutions, non-profits, corporations or schools) aggregate their buying power and jointly purchase renewable electricity, leading to larger deals and better prices. While this model is becoming more common, small towns and cities still struggle to get started.

WRI’s Role

The WRI U.S. Polsky Energy Center partnered with RMI to run the City Renewables Accelerator, which delivered intensive boot camps, cohort programming, one-on-one coaching and technical assistance on renewable energy procurement for more than 300 local governments. As part of this project, the Center and RMI team ran two cohorts on aggregated large-scale offsite renewables procurement, providing 14 regional buyers’ groups with technical assistance. We also developed an Aggregated Procurement Guidance Toolkit to help buyers navigate the complexities of clean energy contracting. The team conducted regional analyses, recruited participants and tailored the program design to meet specific needs.

The Outcome

U.S. cities and local institutions in Massachusetts and Pennsylvania signed contracts for a combined 430 MW of new renewable energy.

In Massachusetts, a consortium of 11 public and private buyers signed two virtual power purchase agreements that will generate an amount of clean power equivalent to powering 130,000 U.S. homes annually over 15 years. By financing the construction of new renewable energy projects in Texas and North Dakota, the deal will support approximately 750 construction jobs and generate an estimated $64 million in local tax revenue and $100 million in long-term income for landowners who host the projects. The group of buyers includes the city of Cambridge, along with two universities, a hospital center and a public radio station. This is the second-ever virtual power purchase agreement signed by a U.S. local government.

In Central Pennsylvania, 10 public entities — including towns, a school district and a water authority — signed a physical power purchase agreement for a 22 MW solar system on leased farmland. The array is expected to save the Centre County Council of Governments $144,000 in energy bills over 15 years.

Together, these deals will reduce emissions and set a model for local clean energy adoption.