California’s virtual power plant could save $206M by 2028: Brattle

Advocates say the taxpayer-funded Demand Side Grid Support program is critical to reducing energy costs and managing the California grid, but it faces an uncertain future.

Dive Brief:

  • California’s taxpayer-funded virtual power plant can reduce the need for gas peaker plants and has the potential to save ratepayers $206 million between 2025 and 2028, according to a new report from The Brattle Group. The report was commissioned by Sunrun and Tesla Energy, both of which participate in the Demand Side Grid Support program.

  • DSGS is run by the California Energy Commission and since 2023 has offered customers compensation in exchange for allowing their behind-the-meter batteries to be dispatched at times of grid stress. A July test event saw more than 500 MW of battery energy dispatched to the grid for two hours.

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