Richmond Advanced Energy Community (AEC) Phase II Project
Zero Net Energy (ZNE) Alliance
Recipient
Davis, CA
Recipient Location
3rd
Senate District
4th
Assembly District
$3,561,450
Amount Spent
Active
Project Status
Project Update
In 2025, the Richmond AEC project achieved several milestones. The project team finalized the development of the DERMS/VPP software and began integrating DER assets with Marin Clean Energy (MCE) data systems and CAISO platforms and programs. The project team also completed build-out of five Zero Net Carbon Ready (ZNCR) homes equipped with all-electric service and executed contracts with low-income homeowners for nine additional residential upgrades. A total of 24 homes of low-income residents were also provided with a range of energy upgrades, including 17 heat pump water heaters, 18 EV chargers (including 10 shared chargers serving a large multi-unit apartment building), 16 communication hubs, six residential batteries (with more in process for integration in Q1 2026). The project team also made progress in deploying clean energy assets at commercial sites, including ten batteries (147kWh total) and ten level 2 chargers in a large affordable multi-family development, and a 60kWh battery system at a mixed use community “maker space” near Point Richmond. As a whole, these DER deployments integrate storage and controllable loads that can be flexed in response to VPP and grid signals. These customers and use cases are the foundation of the emerging MCE Virtual Power Plant program that will be expanded across the MCE four-county territory, funded in part by a new $5 million dollar VPP-FLEX award from the CEC, with matching funds provided by MCE and its partners. Several critical barriers were overcome in 2025 to achieve these results. These included budget pressures and delays caused by rapidly increasing labor and equipment costs, supply chain interruptions and new tariffs, and interconnection delays.
The Issue
To achieve robust zero carbon emissions targets, cities and load-serving entities require advanced energy solutions that enable the cost-effective deployment and integration of distributed and renewable energy resources, and the cost-efficient rehabilitation of homes to a near Zero Net Carbon standard. Achieving these outcomes in a disadvantaged community requires a combination of innovative technology, scaled finance, and the inclusive engagement of cities, NGOs, and community residents.
Project Innovation
The Richmond Advanced Energy Community (AEC) Phase II project demonstrates two breakthrough AEC models that will advance state and local goals for energy and carbon savings, while maximizing benefits to the local community, the grid, and low-income residents in greatest need. These include: (1) Implementation of a DER Community program that optimizes economic and resilience value at the community and grid level, while directing new revenues and societal benefits to low-income residents residing in California's Disadvantaged Communities (DACs); and (2) Implementation of the Zero Net Carbon Ready (ZNCR) Homes Program to finance the rehabilitation of blighted homes to ZNCR status and their re-sale as affordable infill and retrofit properties to low-to-middle income residents using capital provided by Social Impact Bonds. The scale-up of these strategies is being supported by AEC-focused tools and reports disseminated through a statewide AEC Symposium in Oakland (on 2/19/26), and the state AEC partner network.
Project Goals
Implement and operate a DER Community to lower cost and increase community resilience.
Demonstrate the technical and economic feasibility of all-electric home technology packages.
Scale deployment of best-in-class AEC technical & finance strategies in DACs and throughout California
Project Benefits
The Richmond Advanced Energy Community (AEC) project in Richmond, CA is focused on demonstrating two innovative programs for advancing energy and carbon savings while benefiting the local community, the grid, and low-income residents. The first program is the Distributed Energy Resources (DER) Community, which optimizes economic and resilience benefits from energy storage, solar, and smart device deployment. This program aims to maximize clean energy deployment, procurement, scheduling, and customer billing through the integration of a Virtual Power Plant (VPP) software platform provided by MCE Clean Energy. The second program is the Zero Net Carbon Ready (ZNCR) Homes program, which rehabilitates blighted homes to ZNCR status and enables their resale as affordable infill properties for low-to-middle income residents. The project team has partnered with MCE Clean Energy to aggregate and schedule DER resources, including energy storage, smart thermostats, solar, heat pump space and water heating, and EV charging, to participate in the CAISO markets. By shifting load out of evening peak hours, the MCE VPP will help reduce stress on the grid, prevent power outages, and deliver savings to residents. The project also focuses on deploying clean energy assets at commercial sites, including affordable multi-family developments, City of Richmond facilities, and office and light industrial sites in the downtown core. Overall, the Richmond project aims to optimize clean energy deployment, provide economic benefits, and improve grid resilience while targeting benefits to low-income households and the community.
Affordability
Affordability
The project will: 1) Reduce customer costs via installation of high efficiency and all-electric appliances; and 2) Enable ratepayers to participate in the emerging CAISO market.
Reliability
Reliability
The project will enable participating homes and businesses to reduce peak load, shift energy use away from the evening ramp period, and participate in DER aggregation to balance local generation, storage, building loads, and grid.
Safety
Safety
Safety will be improved by: 1) Reducing the dangers of gas leak and explosions by endeavoring to replace natural gas appliances in residences; and 2) Decreasing the likelihood that contractors install devices in an unsafe manner.
Key Project Members
Richard Schorske
Founder/Executive Director
Subrecipients
City of Richmond
KILOWATT ENGINEERING, INC. dba kW Engineering, Inc
Orrick, Herrington & Sutcliffe LLP
Olivine, Inc.
Local Government Commission
Richmond Community Foundation
NHA Advisors, LLC
GRID Alternatives
Cohen Ventures, Inc. dba Energy Solutions
TRC Solutions, Inc.
Blue Strike Environmental, Inc.
Chaumette Consulting
Asian Pacific Environmental Network (APEN)
Match Partners
City of Richmond
Olivine, Inc.
Richmond Community Foundation
GRID Alternatives
Blue Strike Environmental, Inc.
