PowerFlex Strengthens California’s Grid, Generates Revenue for Energy Storage Customers During Demand Response Events

PowerFlex successfully participated in last week’s demand response events in California, helping customers monetize their onsite battery energy storage systems while propping up the state’s beleaguered power grid.  

A heatwave that sent temperatures soaring into the triple digits in some parts of the state prompted the California Energy Commission (CEC) to trigger four demand response events during the week of July 8 as part of its Demand Side Grid Support (DSGS) program.

Customers with a battery energy storage system (BESS) who enrolled in the program through PowerFlex’s aggregation will receive compensation for sending electricity back to the grid, which helped prevent blackouts as Golden State residents cranked up their air conditioners.  

This is only the second year that behind-the-meter (onsite) battery energy storage customers have been allowed to participate in the program, made possible by a new incentive structure that PowerFlex spearheaded with the state’s energy commission.

As one of the largest aggregators of commercial and industrial battery energy storage systems in the program, PowerFlex can provide the California grid with more than 3 megawatts of electricity during times of peak demand — enough to power 3,000 homes. This number continues to grow as PowerFlex enrolls more BESS customers in DSGS.

Stepping up its advocacy in the demand response space even further, PowerFlex has helped craft rules that allow electric vehicles with bidirectional charging capabilities — specifically “vehicle-to-everything” (V2X), where an EV discharges its battery into other assets, including the power grid — to participate in the DSGS program. PowerFlex is currently developing V2X offerings for fleet customers and expects to take part in V2X aggregation next year.  

Participating in Demand Side Grid Support With Energy Storage

Demand response programs like California’s DSGS aim to reduce strain on the power grid during times of increased electricity demand. These programs often go into effect during heatwaves, wildfires, and other instances where the need for power spikes — known as demand response events.

In 2023, PowerFlex worked with the California Energy Commission to develop a new DSGS incentive structure, referred to as Option 3. The new structure allows customers who enroll in the DSGS program with an onsite battery energy storage system to leverage the asset when a demand response event is triggered.

The Option 3 incentive level is unique in that BESS customers are compensated not for curtailing their consumption but for exporting stored energy to the grid. More available electricity on the grid during periods of high demand means less stress on infrastructure, and less chance of rolling blackouts.  

BESS owners can join the program by enrolling through an approved virtual power plant aggregator like PowerFlex. Once enrolled, customers can participate in future Demand Side Grid Support events with no further action required on their part. PowerFlex handles all reporting and data management, facilitated by our adaptive energy management platform PowerFlex X™.

PowerFlex: Energy Storage and So Much More  

In addition to generating revenue through demand response participation, a battery energy storage system unlocks many cost-saving strategies that reduce operating expenses while meeting sustainability targets. And when paired with other renewable energy assets like solar arrays and electric vehicle chargers, companies can maximize these benefits.  
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As an all-in-one cleantech solutions provider, PowerFlex designs, engineers, and installs integrated systems that help corporations, academic institutions, municipalities, and other types of organizations achieve their energy and financial goals. Ready to get started? Contact us now.