Net-Zero Communities: They’re Closer Than You Think

Vanessa McCulloch

Vanessa is a Business Analyst at Hygge Energy. She has a Masters in International Business with a minor in Big Data from EAE business school in Madrid, Spain. She is interested in cross cultural business development and growth strategies. Vanessa believes innovative ideas are key to solving major world issues and is excited to work with her Hygge colleagues as they redefine the way communities use energy.

What comes to mind when you think of net-zero communities? For most, the idea conjures an image of a group of like-minded individuals, each willingly embracing change for the greater good. The notion of every sustainability-conscious individual installing solar panels atop their home is a picturesque one, yet it seems to be a far-fetched, perhaps unattainable, global solution.

What most people don’t realize, however, is that net-zero communities are closer than we think, and the steps for this transition are completely painless for individual energy consumers. The perfect candidates for the net-zero revolution are small towns anchored by one core functionality.

Historically, people move to where there is work; this is why there are multiple cities across North America that seem to have been built around major corporations, manufacturing plants, or institutions. These “company towns” originated in the era of coal mining, where companies would provide their employees with housing and food in exchange for working in their mines. While the days of traditional company towns are long behind us, a similar phenomenon can still be found across North America. There are more than 2000 operational towns that surround one main business, whether this be a production site, a university, or even a Walmart; the surrounding ecosystem is seemingly co-dependent on this one business.

There are more than 2000 operational towns [in North America] that surround one main business; […] the surrounding ecosystem is seemingly co-dependent on this one business.

The connection between these towns and their core businesses runs deep, shaping local economies, policies, and governmental support. These businesses play a crucial role in the town’s infrastructure, giving them the potential to revolutionize energy systems. Through a simple innovation like power trading, they can pave the way for net-zero communities without disrupting daily operations. While peer-to-peer power trading isn't a new idea, it is often dismissed as too complex to put into practice. However, by leveraging the influence of major corporations in these towns, we can introduce a renewable energy system that reduces annual energy costs, facilitates straightforward power trading, and achieves net-zero goals simultaneously.

Each of these towns operates at a different level—with different consumption patterns and different sun exposure—so the first step in a successful net-zero project is data collection. It is important to set oneself up for success; to determine the optimal scenario for a specific town, we’d first need to process a year of consumption data. Using these results, we can determine the size of the renewable energy source and the optimal battery setup. This will allow us to determine the exact renewable energy assets required to create our net-zero community. The corporation would act as a host for a renewable energy asset, initially offsetting its individual consumption, yet harvesting enough to create adequate storage. With the use of power trading, any excess generation would be stored in pre-established community batteries and redistributed to the local community.

By leveraging the influence of major corporations in these towns, we can introduce a renewable energy system that reduces annual energy costs, facilitates straightforward power trading, and achieves net-zero goals simultaneously.  

For the success of such a project, it is crucial for the utility to come on board. Fortunately, there are strong incentives for utility participation because the existing solar programs significantly hinder profits for the utility provider, and the concept of power autonomy poses a genuine threat to their bottom line. However, by using the corporation as a host for all renewable energy initiatives, the utility can take ownership of the battery that stores excess power. This allows them to redistribute it at wholesale rates, benefiting all parties involved. The corporation sees reduced energy bills while implementing renewable energy, the local community gains resilience and access to renewable energy without any upfront costs, and the utility maintains revenues through a predetermined community policy.

Net-zero communities are achievable; by harnessing renewable energy and utilizing data-driven insights, these towns can implement sustainable solutions while maintaining their daily operations. To turn these ideas into reality, collective action for staple corporations and utility providers must be taken to create a greener, cleaner future.