Fiber Helps Co-ops to Save on Electric Grid Usage, Saving Money

ORLANDO, August 21, 2023 – Fiber networks can reduce operating costs for electric cooperatives as well as connect residents to the internet, said representatives of electric co-ops on a Fiber Connect panel Monday, claiming it is a good investment.

Broadband networks allow co-ops to share data that keeps them more efficient on the electric grid, said William Graves, fiber optic network manager at MidSouth Electric Cooperative in Texas.

High-speed broadband connectivity enables the smart grid, a network that allows for two-way communication between the utility and its customers, to ensure that electricity is being managed in the most efficient way, said Graves.

Pete Hoffswell, superintendent of broadband services at Holland Board of Public Works in Michigan added that fiber can connect city systems – such as parking meters – to avoid backlog that occasionally occurs on less efficient networks.

Smart infrastructure will be critical as demand for power increases as use-cases continue to grow for electric vehicle charging, smart home technologies, and more, said Hoffswell. He added that connectivity is more than just connecting renewable energy systems, it is now about building a smart city.

“Smart cities are full of smart people, smart people want their cities to be smart,” he continued. Consumers will make more demands on network providers and this demand will change the way that the networks operate, he said.

Hoffswell added that investor-owned utilities can cover a huge space in the co-op broadband space. Co-ops have the necessary capital for large broadband projects and are a good match for fiber, he said.

William Davidson, director of strategic initiatives at NextEra Infrastructure Solutions in Florida, said that providing fiber services to customers provides incremental value to the cooperative. He added that cooperatives have the unique ability to be patient with long-term projects that take years to break even.

Some experts have touted electric co-ops as the ideal grantee for the $42.5 billion BEAD program – which funds are expected in 2024 – because they are well suited to build public owned networks that then can either be operated by the co-op or leased to private providers.