Expansion of a Virtual Power Plant using Automated Devices in Low-Income and Disadvantaged Communities
Project Update
In 2025, contractor agreements were finalized for smart thermostat installations across both counties. Partnerships with community organizations were established to support trusted outreach to income-qualified customers. Site identification for the smart panel demonstration at affordable housing properties is underway, with the smart thermostat direct installation program launch targeted for early 2026.
The Issue
The project aims to address significant barriers to DERs in low-income communities and DACs, including cost barriers, lack of awareness, and inadequate infrastructure. These communities often face high energy bills and limited access to modern, efficient energy technologies due to financial constraints and overloaded electrical panels that cannot support electrification. Despite numerous energy efficiency programs, these barriers persist because traditional approaches have not sufficiently targeted the unique needs of these populations. Currently, no other entity has effectively addressed these issues at scale in a way that integrates advanced distributed energy resource management systems (DERMS) with community-based virtual power plants (VPPs). This project is critical now due to the increasing urgency of achieving California’s statutory energy goals, reducing greenhouse gas emissions, and ensuring equitable access to clean energy technologies. Addressing these problems now will not only support the state's environmental objectives but also enhance energy equity and resilience in vulnerable communities.
Project Innovation
This project will deploy DERs in disadvantaged and low-income communities to optimize energy use, enhance grid reliability, and support electrification. The project will utilize a majority of the funding directly in communities by procuring and installing smart panels, smart thermostats, and other DERs, while leveraging an existing DERMS platform for real-time monitoring and control. Direct installations and incentives provided by Sonoma Clean Power Authority for low-income customers will address cost barriers for participants over the course of the project, while partnerships with Community Based Organizations (CBOs) will ensure widespread participation and engagement. This comprehensive approach will contribute to California's energy goals by shifting load, reducing emissions, and promoting energy equity and sustainability.
Project Goals
Project Benefits
By consolidating various DERs such as electric vehicle chargers, smart thermostats, smart panels, and battery storage systems into a unified platform, the project will enhance grid reliability by reducing peak demand during periods of grid stress. The automation and predictive controls within the DERMS will attempt to optimize load shifting and reduce reliance on natural gas peaker plants, thus preventing overloads and potential blackouts that may occur when demand exceeds available supply. Additionally, the project will lower costs for participating ratepayers through reducing consumption during peak rate periods, and for both participating and non-participating ratepayers through the reduction of capacity procurement and wholesale energy settlement costs. Customers will benefit from reduced energy bills due to enhanced energy efficiency measures, possible demand charge avoidance for commercial customers, and end-use optimization against Time-of-Use rates. By facilitating DER installations in low-income and disadvantaged communities, the project supports equitable access to these cost-saving technologies, further extending financial benefits to a broader customer base who have historically been difficult to reach.
Affordability
Lower costs for participating ratepayers through reduced consumption during peak rate periods; Lower costs for non-participating ratepayers through reduction of capacity procurement and wholesale energy settlement costs; Possible demand charge avoidance for commercial customers; Enhanced energy efficiency measures leading to reduced energy bills.
Environmental Sustainability
Reduce reliance on natural gas peaker plants, thereby reducing associated pollution impacting public health.
Reliability
Increase system reliability by reducing peak demand during periods of grid stress.
Equity
Equitable access to cost-saving technologies for historically underserved communities.
Economic Development
Demonstration of smart panels with plug-in batteries in multifamily affordable housing units; direct installation of smart thermostats for low-income customers; incentivizing adoption of various DERs with the intent of integration into the VPP using targeted outreach and engagement strategies; engaging small businesses to adopt and integrate DERs into the VPP; evaluation of project benefits; and technology and knowledge transfer activities.
Key Project Members
Felicia Smith
Kimberly Beltran
Bridget Abbene
Aubrie Hunt
Carolyn Glanton
Subrecipients
Match Partners
