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The California Energy Commission (CEC) staff has released for public comment staff-proposed modifications to DSGS Program Guidelines targeted for implementation starting with the 2025 program season, to be referred to as the Fourth Edition (v4) when adopted. Workshop details and the DSGS v4 draft guidelines are available at Docket No. 22-RENEW-01.
Below is a partial summary of staff-proposed modifications to DSGS Program Guidelines:
Refine Incentive Option 3: Market-Aware Storage Virtual Power Plant (VPP)
- Increase minimum nominal aggregate power rating from 100 kW to 500 kW.
- Allow dual participation with market-integrated demand response for exports only.
- Apply “residential” baseline to all batteries.
- Clarify providers serving as VPP aggregators can enroll partner companies’ aggregations as separate VPPs.
- Shift to statewide test events for August, September, and October.
- Add day-of Energy Emergency Alert (EEA) triggers for bonus compensation.
Add New Incentive Option 4: Emergency Load Flex VPP
- Eligible equipment: smart thermostats and electric water heaters
- Program trigger: EEA Watch+ (to address sudden onset emergencies)
- Require upfront monthly capacity commitment
- Compensation structure: monthly capacity payment, adjusted for performance + potential “penalty” (incentive claw back) for large shortfall
- Event limits: minimum two events per season, maximum 60 hours per season
- Test events called by CEC in absence of EEA events
- Measurement and verification based on device specific data
Continue Improvements in Program Implementation and Administration
- Require post event interim data reporting
- Clarify participation requirements
- Improve performance requirements
- Other minor changes
Visit our DSGS Program for updates.
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