The Future of Energy is Local: What San Diego Community Power Reveals About the Grid Revolution
Insights from my conversation with Karin Burns, CEO of San Diego Community Power, on virtual power plants, community choice, and building resilient energy systems
I recently interviewed Karin Burns, CEO of San Diego Community Power, for our Renewable Rides podcast. SDCP is one of California's youngest yet second-largest Community Choice Aggregates (CCAs). In just three years, it has grown from a dozen people serving its first customers to nearly 85 staff with over $1 billion in revenue and about a million customer accounts.
While everyone's debating federal policy changes, the real energy revolution is happening at the community level. And it's revealing what the future of our energy system actually looks like.
Community Choice: Energy Democracy in Action
Most people don't know what a CCA is, which is part of the problem. CCAs represent the missing link between centralized utility monopolies and distributed energy resources.
Here's how it works: cities and counties band together to form a not-for-profit government agency that procures power for their communities. San Diego Gas & Electric still owns the poles, wires, and billing systems. But San Diego Community Power controls where the electricity comes from and they're focused on cleaner, more affordable, locally-produced power.
The difference is profound. Instead of shareholders driving decisions, it's stakeholders, the actual customers. The board consists of elected officials from each member city, directly accountable to the communities they serve.
Karin's organization offers four different power products, from their most affordable option (5% discount to SDG&E rates) to 100% renewable power for just one cent more per kWh than their standard 50% renewable product. That's choice most ratepayers never had before.
The Virtual Power Plant Revolution
What really got my attention was their virtual power plant (VPP) strategy. They have a goal of connecting 150 megawatts of distributed resources over the next five years, starting with residential solar-plus-storage and expanding to commercial and industrial systems.
"San Diego has some of the largest proliferation of solar on rooftops around, but we didn't have a lot of batteries," Karin explained. "We have enough solar from 12 to 4, we really need it from 4 to 9."
Their approach is brilliant: take existing "stranded" solar assets that are pushing power into the grid when it's not needed, add batteries, and coordinate them through a distributed energy management system. Instead of building massive centralized power plants, they're orchestrating thousands of smaller systems to act as one.
This is the grid of the future. Not more transmission lines and centralized generation, but intelligent coordination of distributed resources.
Why the Behind-the-Meter Opportunity is Massive
The numbers Karin shared put the distributed energy opportunity in perspective. California has built over 100 new data centers and massive EV infrastructure, yet utility-scale generation capacity hasn't had to increase proportionally because behind-the-meter systems are handling much of the load growth.
San Diego Community Power has already contracted for almost 2 gigawatts of renewable energy and about 1 gigawatt of battery storage. But that's just to meet the clean energy transition, not accounting for AI data centers, electrification, and other load growth.
"The amount of build we have to do is substantial," Karin noted. "But demandside management is really key. We can't just build, build, build without focusing on energy efficiency and time-of-use optimization."
This is exactly what we're seeing with our clients. The companies deploying onsite energy systems aren't just reducing their costs, they're reducing strain on the broader grid system while improving their own reliability and resilience.
The Policy Reality Check
Karin was refreshingly honest about the "One Big Beautiful Bill" impacts. While others focus on the opportunities, she sees the bigger picture challenges:
"It appears to be a net negative for the energy space overall. With 80% of battery components sourced from China and the foreign content restrictions, plus tax credits going away, longer-term prices will go up."
The interconnection delays make it worse. Projects that would have qualified for tax credits might miss deadlines not because of development issues, but because they're stuck waiting for utility interconnection approvals.
But here's the crucial insight: these headwinds make distributed, behind-the-meter systems even more attractive. When utility-scale development gets more expensive and complicated, the economics of onsite generation improve dramatically.
Local Control, Global Impact
What I love about the CCA model is how it proves that energy transformation doesn't have to wait for federal policy. Communities can take control of their energy future right now.
San Diego Community Power's focus on local jobs, local resources, and local benefits creates a virtuous cycle. Instead of sending energy dollars to distant corporations, they're reinvesting in their own communities while driving down costs and emissions.
"The how is as important as the what," Karin told me. "Yes, we could get to 100% renewable tomorrow, but it would be very expensive. We need to do it over time, build capacity locally, create great jobs."
This mirrors what we see with successful onsite energy deployments. The companies that succeed treat energy as a strategic asset, not just a cost center. They build internal capabilities, engage local suppliers, and create systems that deliver value over decades.
AI as the Great Accelerator
One area where Karin and I completely align: artificial intelligence will transform how we manage energy systems. She's particularly excited about AI tools that can accurately predict load patterns and demand shapes.
"The past is not a predictor of the future anymore. You need intelligence looking at what's coming as well as what the past tells us. The amount of data we have that we're not using to make load forecasts is mind-boggling."
Her organization is building the data infrastructure needed to harness AI - connecting disparate systems, standardizing data formats, and creating the foundation for intelligent automation.
This is exactly what's needed for virtual power plants and distributed energy coordination. The technology exists, but the integration and orchestration require sophisticated data management and predictive analytics.
The Building Blocks Are Here
Local action is creating momentum. CCAs like San Diego Community Power are proving that communities can control their energy destiny while driving down costs and emissions.
For businesses, the message is clear: while others wait for perfect policy conditions, smart companies are taking control of their energy future through onsite systems that reduce costs, improve reliability, and support local energy independence.
The grid of the future isn't being built in Washington - it's being built in cities like San Diego, one distributed resource at a time.
The revolution is local, and it's happening now.