Generac Securing DOE Funding to Support $100M Battery Microgrid VPPs for Water Utilities
Backup power equipment manufacturer Generac Holdings has moved closer to utilizing a $50 million federal grant that would develop on-site power aggregation for water utilities throughout California.
The Wisconsin-based generator firm was selected to enter negotiations with the U.S. Department of Energy to receive the award and work with the California Water Association to integrate clean energy microgrids into water infrastructure facilities. The award is part of the DOE Grid Resilience and Innovation Partnerships Program (GRIPS) established by the Bipartisan Infrastructure Law several years ago.
Under the planned water infrastructure power project, microgrids using battery energy storage and managed by distributed energy resources management systems (DERS) would form virtual power plants (VPPs) which could deliver load reduction across the connected energy network during times of grid stress.
“We’ve been providing reliable backup power solutions to critical infrastructure, such as water and wastewater utilities, in California and across the U.S. for more than 65 years,” said Aaron Jagdfeld, president and CEO at Generac, in a statement. “We are honored to be selected by the DOE to expand that scope by delivering these innovative solutions of clean, resilient, and efficient power for California and its grid.”
Virtual power plants use advanced software control technology to coordinate the output of distributed energy resources (DERs), like rooftop solar and energy storage systems, electric vehicles, smart thermostats, and smart home devices, such as appliances, televisions and smart lights. The VPPs then aggregate tens, hundreds or even thousands of DERs into a single, dispatchable resource that can either reduce load or create supply during times of peak demand.
Total investment on the project could total $100 million in work across 100 California water utility sites, including more in half of those in disadvantaged communities.
"This effort will install battery systems at water utility facilities across the state, supporting resiliency during local outages and enhancing grid reliability by offering backup power during extreme events,” California Energy Commission Chair David Hochschild said.
Battery capacity allows energy managers to store electricity and time its consumption to respond to high demand or peak load situations. Many microgrids integrate renewable energy, battery storage and on-site gen-sets to create more predictable and longer duration on-site power.
Power outages at water and wastewater plants pose health and environmental risks.
The California water utility microgrid projects will create an estimated 200 union construction jobs and 33 direct jobs, contract approximately $27 million with businesses majority owned or controlled by underrepresented persons or groups of underrepresented persons. Some of the work will include involvement of the Northern California Laborers, Northern California Operating Engineers, Operators Local Union, Teamsters Local Union, Laborers Local Union, Carpenters Local Union, Masons Local Union, or the IBEW Local Union.
Generac, long known for residential, commercial and industrial on-site power generators, is increasingly expanding into the microgrid market. The company recently acquired microgrid controller firm Ageto Energy.
