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Open Access Publications from the University of California

The Impact of Community Choice Aggregation on Renewable Energy in the United States

Abstract

Community Choice Aggregations (CCAs) have emerged as a key mechanism for local governments to procure electricity, often with a focus on increasing renewable energy adoption. This report provides a comprehensive analysis of CCAs in the U.S., quantifying their electricity sales, customer base, and renewable energy procurement trends. Findings indicate that while CCAs can enhance local control and accelerate voluntary green power adoption—accounting for 9% of national voluntary green power sales in 2016—they face significant challenges, including maintaining cost competitiveness, balancing local autonomy with regional cooperation, and securing long-term renewable energy contracts. Additionally, CCAs must navigate regulatory hurdles such as exit fees and resource adequacy requirements, particularly in states with regulated electricity markets like California. Key recommendations include enhancing customer awareness, developing flexible enrollment policies, and fostering collaboration among CCAs, utilities, and policymakers to ensure sustainable expansion and increased renewable energy procurement. Addressing these challenges will be crucial for maximizing the environmental and economic benefits of CCAs while ensuring grid stability and market efficiency.