California to Use Homeowner’s Battery Backups to Power the Grid

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Pacific Gas & Electric Company (PG&E) in California has introduced the Seasonal Aggregation of Versatile Energy (SAVE), a demonstration project under the Electric Program Investment Charge (EPIC). This project is a virtual power plant (VPP) model that aims to alleviate congestion on the local power grid by leveraging residential distributed energy resources. The initiative will involve up to 1,500 electric residential customers equipped with battery energy storage systems and up to 400 customers with smart electric panels. The VPP is slated for operation for up to 100 hours from June through October 2025, focusing on managing peak demand periods when the local electric infrastructure is under significant pressure.

PG&E collaborates with several aggregators and the Demand Side Analytics research team for this project. Participating aggregators, including Sunrun and SPAN, will receive weekly signals from PG&E that detail the grid’s energy capacity needs, allowing them to adjust customer usage accordingly. The project will utilize software from Tesla and SPAN to address these demands. The areas selected for the SAVE initiative are mainly located in the South Bay Area and the Central Valley, chosen for their potential to experience overload during peak times, the existing customer base of the aggregators, and PG&E’s ability to test different grid requirements.

A significant portion of the SAVE program focuses on equity, with more than 60% of its customers coming from disadvantaged or low-income communities. This program is a part of PG&E’s EPIC initiative, which allows for the demonstration of new technologies to support safety, reliability, and affordability for all electric customers in California. The funding for SAVE is sourced from EPIC 4.09B Aggregated Customers on Distribution Circuits (ACDC).

Sunrun’s participation involves using solar-plus-storage systems in Northern and Central California to provide load relief in areas with highly constrained electric grids. They will manage the battery dispatches, ensuring batteries retain at least 20% reserve for emergencies. Sunrun will employ Tesla’s grid services platform and Lunar Energy’s Gridshare software to optimize battery output for specific times and locations.

SPAN will engage customers with smart electric panels to deliver targeted load relief. With the Dynamic Service Rating capability, SPAN will shape home energy demand during peak events, allowing customers to manage their energy usage via the SPAN Home App. This system provides flexibility for customers to prioritize essential appliances while assisting in reducing grid congestion.

For additional details on PG&E’s EPIC program and other related projects, visit their website here.

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