The Model of City Energy: Denton TX

Owning your own utility may be the key to energy efficiency for a municipality. In the case of Denton, TX, the city has tapped renewable energy to create savings and provide funding for LED lighting and other projects...

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What Happened?

Denton, Texas, is currently housing the most wind power per capita in the United States thanks to its customer-owned electric utility company that has boosted the use of green technology. Citizen customers own the Denton Municipal Electric company and have pushed the agenda for clean sources of fuel over the past few years.

The Goal

After signing a purchase agreement with NextEra Energy Power Marketing, DME now has access to 60 megawatts of wind power annually which makes up 40 percent of Denton’s electricity needs. The region’s electricity market is deregulated, and Denton is located close enough to NextEra to keep prices low at $0.06 per kWh.

Furthermore, methane extracted from a local landfill is also a source of electricity for DME. About 1.6 megawatts of electricity is generated annually from methane, which in turn can power 1,600 Denton homes. There is also a natural-gas-fired combined heat and power plant in Denton that offers steam and chilled water for industrial customers. This allows companies to acquire energy without maintaining chillers and boilers in house.

The city hopes to use 100 percent renewable energy sources in the future with a complex mix of green technology. Because the city’s residents own the utility company, it is easy to enter into an agreement that shifts from gas and coal to green energy sources such as wind power or methane.

Do the Math

According to Daskam, Denton has reduced its carbon emissions by 61.3 million gallons of gasoline each year with its green energy solutions. Not only is the electricity cleaner and affordable, but the service is reliable as well.

Denton has also added LED traffic lights that generated $35,000 in savings over the past eight years, as well as advanced metering programs to cut $143,6000 or 1,436 MWh annually.

In terms of transportation, Denton has increased alternative fuel use from 5 percent to 35 percent, while the local CHP plant has helped residents cut their energy bills by 10 to 15 percent. The investment in green technology and alternative energy is doing more than lower carbon emissions – it is boosting economic activity and job creation as well.

Lead By Example

Just as Denton has taken the initiative on green tech investment, Denmark first installed wind turbines more than 30 years ago. Now, the green technology accounts for more than 33 percent of the country’s annual electricity consumption.

The Climate Consortium Denmark predicts wind power will make up 50 percent of the nation’s electricity supply, helping establish it as the center for green power innovation. The wind power industry in Denmark is already comprised of 350 companies employing more than 25,000 workers.

International businesses working with wind technology that have opted to plant their roots in Denmark to take advantage of the wind power value chain and access to the latest research and development in the industry. As a result, Denmark has become a mecca for skilled scientists, technology startups and government research programs in the wind power market.

Local Steps

Gov1 has monitored the adoption of green technology at the local level to improve stormwater management and install eco-friendly infrastructure.

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