Coalition Urges $75M Boost to Save California's Grid-Stabilizing DSGS Program
A coalition, spearheaded by Advanced Energy United, is calling for a significant funding boost to keep California's Demand-Side, Grid-Support (DSGS) program afloat in 2026. The program, which helps stabilize the state's grid, is set to exhaust its funds by the end of the year without additional support.
The DSGS program, established in response to grid crises in 2020 and 2022, has proven its worth. It includes one of the world's largest virtual power plants (VPPs), with over 200 MW in capacity and 720 MW of customer battery capacity enrolled. It offers four enrollment options, including an emergency dispatch option that pays participants $2 per kWh of incremental load reduction.
The program has demonstrated its value, helping to stabilize California's grid during four heatwaves in the summer of 2024. However, its future is now at risk due to a $12 billion budget shortfall. Despite its potential to grow to 1,300 MW in the next three years and provide up to $206 million in net cost savings to all Californians, the DSGS program's funding was cut by $18 million instead of being increased.
The coalition is now demanding at least $75 million in funding to keep the DSGS program operational in 2026. According to the California Solar Storage Association, every dollar invested in the program results in up to two dollars in customer rate reduction. The coalition hopes that this investment will secure the program's future and ensure California's grid reliability.
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