EnergyHub Receives CEC Grant to Support Expansion of Virtual Power Plants in California

Rhea-AI Summary

EnergyHub has received a California Energy Commission (CEC) grant to enhance the deployment of virtual power plants (VPPs) in California. The $1.5 million initiative, initiated on June 6th, aims to enroll up to 7,000 new distributed energy resources (DERs) such as thermostats, electric vehicles (EVs), and batteries into VPPs. This project supports California's 100% renewable energy goal and addresses resource adequacy issues. EnergyHub’s DER management system will aggregate these resources, which can be bid into the CAISO market through a partnership with Leap. The grant focuses on low- and moderate-income customers and allows device owners to enroll through their utility or directly with EnergyHub. The initiative highlights the importance of multi-DER control for improved load shaping and grid reliability.

Positive

• EnergyHub received a $1.5 million grant from the CEC.
• The initiative supports California's 100% renewable energy goal.
• Up to 7,000 new DERs will be enrolled in VPPs.
• Focus is on low- and moderate-income customers.
• EnergyHub’s DERMS will aggregate resources for the CAISO market.
• Partnership with Leap enhances market participation.
• Experience with 70+ utility clients boosts scalability.

Negative

• Resource adequacy constraints need addressing.
• The program's impact is contingent on effective enrollment and participation.
• Reliance on utility cooperation for customer enrollment.

Insights

Market Research Analyst

EnergyHub's recent grant from the California Energy Commission (CEC) to expand virtual power plants (VPPs) highlights a notable development in the energy sector. This initiative will significantly contribute towards California’s ambitious goal of achieving 100% renewable energy by 2045. The enrollment of multiple types of distributed energy resources (DERs) such as thermostats, electric vehicles (EVs) and batteries into VPPs demonstrates a comprehensive approach to energy management. From a market research perspective, EnergyHub’s focus on low- and moderate-income customers can be seen as a strategic move to broaden customer base and foster inclusivity, which aligns well with California's broader social and environmental goals. Importantly, this grant also enhances EnergyHub’s positioning as a key player in the renewable energy space, potentially enabling the company to form new partnerships and enter new markets. Investors should consider how this grant may improve EnergyHub’s long-term growth prospects, especially as the company leverages its expertise in DERMS to optimize resource management and capitalize on emerging market opportunities.

Financial Analyst

The $1.5 million grant awarded to EnergyHub by the California Energy Commission is a modest but impactful boost. For investors, this news is especially relevant given EnergyHub’s status as a subsidiary of Alarm.com (NASDAQ: ALRM). Financially, this grant, while not enormous, represents a validation of EnergyHub’s technology and strategy, potentially leading to more significant funding and revenue opportunities in the future. Also, the ability to bid these aggregated DERs into the CAISO market through their partnership with Leap opens up new revenue streams. This creates a diversified income model and enhances financial stability, key factors in assessing the company’s long-term value. Moreover, the grant’s focus on enrolling 7,000 new devices hints at an increase in user engagement and potential upsell opportunities for related services, further bolstering financial performance. Investors should be aware of the long-term benefits this grant can bring, especially in terms of operational growth and market validation.

Renewable Energy Expert

The grant awarded to EnergyHub is a significant step towards reinforcing California's renewable energy infrastructure. From a technical perspective, the integration of various DERs into VPPs can drastically enhance grid reliability and flexibility. This aggregation allows for better load-shaping and energy distribution, which is essential for maintaining a stable grid as renewable energy sources like solar and wind become more prevalent. It’s important to note the unique demand characteristics of EVs, thermostats and batteries, which collectively contribute to a more balanced and efficient energy grid. The initiative also democratizes access to VPPs, enabling even those without utility-offered programs to participate, promoting energy inclusivity. The focus on low- and moderate-income customers is particularly noteworthy as it aligns with broader goals of equitable energy access and environmental justice. For investors, these factors indicate strong alignment with regulatory trends and potentially smoother regulatory approvals in the future, which can be critical for scaling operations.

NEW YORK--(BUSINESS WIRE)-- EnergyHub, a leading provider of Edge DERMS, was awarded a California Energy Commission (CEC) grant to advance the enrollment of multiple types of distributed energy resources (DERs), including thermostats, electric vehicles (EVs), and batteries, in virtual power plants (VPPs). The grant funding will accelerate California’s progress toward the state’s 100% renewable energy goal and help address severe resource adequacy constraints.

The initiative will play a key role in proving the importance of multi-DER control and optimization. Because EVs, thermostats, and batteries have different demand characteristics, enrolling two or more kinds of DERs in a VPP enables improved load-shaping capabilities. This will help deliver a reliable, increasingly decarbonized grid in California and accelerate the CEC’s progress toward 100% renewable power in the state. 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 6th, will enroll up to 7,000 new thermostats, EVs, EV chargers, and batteries with a focus on low- and moderate-income customers. 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. 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.

“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.”

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 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.

EnergyHub is an independent subsidiary of Alarm.com (NASDAQ: ALRM), the leading platform for the intelligently connected property.

About EnergyHub

EnergyHub is a leading Edge DERMS provider. Utilities rely on EnergyHub’s DERMS platform to manage all distributed energy resources to serve grid and market objectives. EnergyHub works with over 70 utilities in North America to manage more than 1.9 GW of flexible capacity. We empower utilities and their customers to create a clean, distributed energy future. For more information, visit www.energyhub.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240612555065/en/

Anne Steinberg

Kitchen Public Relations

anne@kitchenpr.com

917-817-4850

Source: EnergyHub

FAQ

What is the value of the CEC grant received by EnergyHub?

EnergyHub received a $1.5 million grant from the CEC.

When did EnergyHub's new program begin?

The program began on June 6th.

What types of DERs will be enrolled in EnergyHub's VPP initiative?

The initiative will enroll thermostats, electric vehicles (EVs), EV chargers, and batteries.

How many new devices will EnergyHub's program enroll?

The program aims to enroll up to 7,000 new devices.

What is one of the primary goals of EnergyHub's initiative?

The primary goal is to support California's 100% renewable energy target.

What market will the aggregated DERs be bid into?

The DERs will be bid into the CAISO market.

Who can participate in EnergyHub's program?

Device owners can participate through their utility or directly with EnergyHub.

Which customer segment is the focus of EnergyHub's new program?

The program focuses on low- and moderate-income customers.