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Electric utility company PG&E is experimenting with "precise grid surgery" through this summer's Voluntary Power Purchase Program (VPP) pilot.

California utility is adopting a novel strategy for virtual power plants, albeit on a reduced scale compared to its previous methods.

Power company PG&E is experimenting with "specific grid surgery" through its VPP pilot program this...
Power company PG&E is experimenting with "specific grid surgery" through its VPP pilot program this summer.

Electric utility company PG&E is experimenting with "precise grid surgery" through this summer's Voluntary Power Purchase Program (VPP) pilot.

PG&E has announced the launch of a new Virtual Power Plant (VPP) program called SAVE, which aims to leverage behind-the-meter resources to meet neighborhood-level constraints. The program involves Sunrun, a leading residential solar company, and smart panel maker Span.

The SAVE program will see up to 1,500 residential batteries and 400 smart electric panels integrated within individual distribution circuits. Sunrun will manage battery dispatches at customer homes, while Span will shift or cap power consumption. Sunrun battery customers will receive $150 per battery for participating, and Span panel owners can earn up to $250, depending on their participation in events throughout the summer.

The added complexity of this summer's pilot is centered around the load shapes that PG&E is asking its partners to match. The needs of the grid are different in different regions and change over time. This is a departure from PG&E's first VPP pilot with Sunrun, which involved more than 8,000 residential batteries but didn't meet the anticipated capacity due to many batteries not responding each day.

The success of the batteries and panels in adhering to PG&E's "interesting load shapes" will determine potential scale. Span's addition as an aggregation partner opens up the possibility for load limiting, or "hourly operational envelopes," a tactic used in parts of Europe but not widely in the U.S.

The SAVE program moves from simple time-of-use export programs to complex, predictive load shaping. It is not trying to determine the best approach to VPPs, but rather to shed light on where and when value can be gained through alignment across assets. The magnitude of impact of SAVE in its first iteration is intended to be low, but if successful, questions about long-term participation, incentives, and asset magnitude will arise.

PG&E is also testing a new approach for its 2023 VPP using smart electrical panels and software from Tesla. The SAVE program is a test of "precision grid surgery" to prove the model and address the industry challenge of unlocking additional capacity that Distributed Energy Resources (DERs) could provide.

However, the search results do not provide information about which companies are collaborating on PG&E's SAVE program pilot in California or whether Span, as a smart panel manufacturer, has been involved in a similar project phase. Udwin states that the conversation about the value of these resources cannot be staked in reality until the blocks are built up. The success of the SAVE program could pave the way for a more widespread adoption of VPPs in the U.S.

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