Senate Bill 24-218, a bill that will modernize Colorado’s energy distribution system, passed the House Floor and now awaits the Governor's signature
DENVER, CO— Groundbreaking legislation, Senate Bill 24-218, sponsored by Senate President Steve Fenberg, Senator Chris Hansen, House Majority Leader Monica Duran, and Representative Kyle Brown, garnered significant support on the House Floor and passed the legislature. The bill now moves to Colorado Governor Jared Polis’s desk for signature.
National business association Advanced Energy United, joined by clean energy businesses, the Colorado Solar and Storage Association, union labor, Xcel Energy, and environmental advocates, endorsed the bill that will upgrade Colorado’s electricity distribution system, which connects our homes and businesses to the local grid. The bill requires proactive and timely upgrades to the state’s electricity system to meet future electrification demand and will make it easier and cheaper for customers to connect energy resources like rooftop solar and electric vehicles to the grid.
The bill provides a suite of policy changes that will direct electric utilities to strategically invest in distribution system upgrades to keep up with rising energy demand, meet state transportation and building electrification goals, and accelerate the deployment of clean energy technologies. One of the key benefits for consumers is the establishment of a virtual power plant (VPP) program. This program enables ratepayers to save money by taking advantage of distributed energy resources, such as solar paired with battery storage systems, smart thermostats, and electric vehicles, to store and supply energy to the grid.
Clean energy business representatives from Sunrun, PowerFlex, The Mobility House, and Sunnova join Advanced Energy United in applauding the bill.
“Colorado’s electrical distribution system is overdue for an upgrade and this new legislation offers several solutions to ‘future-proof’ the distribution grid in a reliable and cost-effective way,” said Emilie Olson, Colorado state lead for Advanced Energy United. “This legislation is about proactively anticipating future grid needs. Upgrading our grid will not only provide communities with a more resilient energy system but also empower more people to be compensated for the electricity they deliver back into the grid. This policy can serve as a model for other states looking to upgrade their grid planning processes to properly prepare for the coming changes to the electricity system.”
“SB 218 is a massive step forward in Colorado’s commitment to clean energy and building a resilient grid in the face of extreme weather events and high energy demand. By passing SB 218, Colorado continues its leadership on the energy transition by using technologies in people’s homes, including home solar systems and batteries, to help us wean off dirty fossil fuels and manage the impacts of increased electrification on the grid,” said Christopher Worley, Senior Director of Policy, Sunrun. “This bill follows the example of several states, including Texas and California, which turn to home solar and batteries as a vital solution during times of peak demand and potential outages.”
“SB 218 helps make Colorado a national leader in creating a “grid of the future” that can host cost-effective, reliable and clean distributed energy resources,” said Raghav Murali, Head of Policy & Government Affairs, PowerFlex. “The bill modernizes the state’s distribution planning and interconnection processes to make them more transparent, thorough, and reflective of load management technologies that can significantly reduce the need for costly upgrades. In doing so, this bill not only makes Colorado’s electric grid cleaner and more reliable, but also more affordable for all ratepayers.”
"SB 218 enables Colorado to rethink how to plan and build the distribution grid. The combination of flexible connections and forward-looking planning gives distribution utilities the tools they need to continue serving their customers in a timely and cost-effective manner even as the pace and volume of requests for new load and resource interconnections for EVs and distributed resources accelerates," said Jacqueline Pierro, US Head of Policy, The Mobility House.
"This grid modernization bill will pave the way for Colorado to meet its decarbonization and energization goals, while also improving energy equity in the state. It will allow Colorado’s grid to have the needed capacity and flexibility for residential solar systems while also establishing a tariff to develop a performance-based virtual power plant program in Colorado. A robust virtual power plant program not only strengthens community resilience but also accelerates the adoption of clean energy by fairly compensating owners for their grid-supportive services," said Katherine Wyszkowski, Senior Government Affairs Associate, Sunnova.
Click here to learn more about Advanced Energy United's work in Colorado.