Advanced Energy Perspectives

California is making enormous strides in its race to 100% clean energy, but rapidly rising energy prices are threatening to hold us back.

Electricity prices have surged 127% over the past decade, with some customers seeing increases of over 60% just in the last four years. These rising costs put a significant strain on household budgets, especially in disadvantaged communities, and pose a growing threat to the success of California’s clean energy and electrification goals.

As California moves toward a clean energy future, its demand for electricity is surging, fueled by the rapid electrification of homes, vehicles, and businesses across the state. The California Air Resources Board (CARB) estimates that electricity demand could increase by 76% by 2045 (relative to 2022), making expansion of the state’s transmission infrastructure crucial to keeping the lights on.  At the same time, climate-related threats—such as wildfires, extreme heat, and severe weather events—are increasingly straining the grid, further highlighting the urgent need for modern and resilient transmission infrastructure. However, California is already grappling with an energy affordability crisis, and new transmission investments come with significant costs. To meet the state’s clean energy and reliability goals without further burdening ratepayers, innovative financing solutions will be critical. 

Net-Zero California’s (NZC’s) and Clean Air Task Force’s (CATF’s) timely report, Wired for Savings: Evaluating the Impact of Alternative Transmission Financing and Development Models on California Ratepayers, explores alternative transmission financing and development models and their impacts on consumers. The results show potential for substantial ratepayer savings of up to $3 billion per year, or about $123 billion over 40 years, to the extent that this infrastructure is financed and developed through public-private partnerships. 

This year’s California legislative session was filled with twists and turns as lawmakers faced intense pressure to tackle skyrocketing energy bills and prepare the grid for more extreme weather. Amidst these challenges, Advanced Energy United (United) achieved significant victories for advanced energy technologies—but we also experienced some frustrating setbacks in key areas that we will continue to focus on in the coming years. 

California has long been thought of as a pioneer in the clean energy movement, often first among states to seize new opportunities and try bold ideas to ensure a sustainable future for its residents—both environmentally and economically.  

We’re currently seeing three critical energy trends across the state of California.  

First, energy affordability is an urgent crisis. California's success in reducing the cost of clean, renewable power means commodity energy prices during much of the day are lower than ever, but replacing our aging and fire-prone infrastructure has driven electric bills to unsustainable levels, especially for the state’s poorest and most vulnerable.