California Choice Energy Authority (CalChoice), a California joint powers authority (JPA), is going to establish fixed rates for the purchase of power from distributed energy resources (DERs) during periods of anticipated high demand, via a partnership with Leap.
How it will work: Leap partners with companies that develop and operate DER technology such as EV chargers, smart building technologies and battery storage, to aggregate those technologies and make them available to grid operators. With this specific program, DER owners (w/ Leap) are rewarded for offering their assets on set dates and hours during the week with access to locked-in energy payments.
Establishing consistent prices for the energy they sell into the market provides Leap’s partners with more predictable revenue streams for their grid contributions. The program protects CalChoice and its network of CCAs against costly price spikes due to high demand during unpredictable events such as heat waves.
“We’re excited by this opportunity to help CalChoice develop new solutions to protect against high energy prices, especially at a time when concerns of inadequate power supply dominate the news,” said Andrew Hoffman, Chief Development Officer at Leap.
Leap and CalChoice determine the days and times when wholesale energy prices are expected to be highest for users, using a variety of inputs such as weather and past trends. Through this program, partners leverage Leap’s analytics to lock in energy payments for two hour periods, three days a week, during which CalChoice will purchase this power at a predetermined price, allowing both parties to plan around a set, consistent rate.
This seasonal program began in June and is set to run through October.
“For CalChoice and our portfolio of CCAs, having consistency and predictability is paramount,” said Jason Caudle, Executive Director of CalChoice. “Through this program with Leap, we’re able to offer peace of mind and reliability, all without any additional complexity. We’re always looking to innovate the way we purchase our power in an ever-evolving market, and are looking forward to assessing the results of this exciting initiative.”
For Leap, this is another example of how it can simultaneously support the needs of the grid, energy retailers and commercial partners. Leap most recently partnered with Lumin.
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