Software provider Leap announced the launch of a new California Demand Side Grid Support (DSGS) offering for battery storage technology providers. DSGS is a new statewide grid services program introduced by the California Energy Commission (CEC) in order to incentivize distributed energy resources (DERs) to provide flexible support to the grid during periods of high demand for electricity.
Leap will be one of the first platform providers to offer DSGS, according to the company, adding that its software is meant to facilitate the integration of batteries into the grid so they can act as a virtual power plant (VPP). Leap said will enable commercial and residential battery storage systems in California to generate additional grid revenue alongside existing demand charge management and bill savings, beginning August 1, the program’s first season of operations,.
Leap served as a lead contributor to the proposal that was used to develop CEC DSGS program guidelines. The new capacity-based program is the first in California to compensate behind-the-meter battery storage systems for exporting energy back to the grid, meaning that batteries will be credited for the full value they can provide to the grid during periods of strain. The program structure also simplifies market participation for battery storage systems by streamlining site enrollment and performance measurement processes, Leap said.
Extreme weather events like extended heat waves are becoming more frequent and intense in California, causing strain on the grid that increases the risk of blackouts and leads to higher energy bills for consumers. The CEC developed DSGS in order to address these challenges without relying on additional fossil fuel generation. Unlike conventional grid services programs, DSGS is specifically designed to incentivize demand-side resources – rather than traditional power plants – to meet the needs of the grid during peak hours.
