EnergyHub earns CEC grant to expand California virtual power plants

virtual power plants

EnergyHub is set to expand California VPPs. EnergyHub, an independent subsidiary of Alarm.com, and a provider of Edge DERMS, was awarded a California Energy Commission (CEC) grant to advance the enrollment of multiple types of distributed energy resources (DERs) in virtual power plants (VPPs). The grant funding will help address California’s severe resource adequacy constraints and prove the importance of multi-DER control and optimization.

Additionally, the grant expands the opportunity for California residents to enroll connected devices in VPPs, even if their utility does not offer such programs. The $1.5 million program, which began June 6, will enroll up to 7,000 new thermostats, EVs, EV chargers, and batteries with a focus on low- and moderate-income customers.

“This grant makes it possible for more Californians to realize the full benefits of DERs, expanding access to participation in VPPs” said Angela Kent, Manager, Regulatory Affairs, at EnergyHub. “By enabling multi-DER control and optimization, EnergyHub will help accelerate California’s achievement of its climate goals while improving grid reliability and sharing the financial benefits with electricity consumers.”

DER control

DERs covered include thermostats, electric vehicles (EVs), and batteries. Because EVs, thermostats, and batteries have different demand characteristics, enrolling two or more kinds of DERs in a VPP enables improved load-shaping capabilities.

EnergyHub’s distributed energy resource management system (DERMS) will be used to aggregate enrolled devices into VPPs, which can then be bid into the CAISO market through EnergyHub’s partnership with Leap.

EnergyHub VPP background

EnergyHub’s experience building VPPs for 70+ utility clients – including Canada’s largest residential VPP in just six months – will be key to unlocking scale and providing a seamless experience for California residents looking to enroll in the program.

“Leap is excited to work with EnergyHub to bring the full benefits of DER ownership to Californians by helping them share in the value that multi-DER VPPs provide to the grid,” said Jason Michaels, Chief Revenue Officer at Leap. “The CEC grant validates the key role VPPs will play in enabling a carbon-free grid and a just energy transition in the state of California.”

California VPPs

California has established a goal of achieving 100 percent zero-carbon energy by 2045, and the CEC plays a pivotal role in California’s development and adoption of renewable energy. The Energy Commission provides funding and programs to support renewable energy development and tracks the state’s progress toward its renewable goals.

Device owners can either participate via their electric utility, if a program is offered, or enroll directly with EnergyHub if a utility program is unavailable.

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