As we move toward a clean energy future, new technologies are transforming how energy is generated, stored, and managed. In California, clean energy is a top priority, and innovations like virtual power plants (VPPs), battery storage, and electrification are making big impacts.
In this fifth installment of our Empowering Electrification series, we’re looking at cutting-edge solutions and how they’re shaping the future of clean energy.
Virtual Power Plants
VPPs are a new way of building and managing energy infrastructure to help meet electricity demand. Whereas traditional power plants occupy a single centralized location, VPPs connect distributed energy resources (DERs) such as solar panels, EV chargers, and smart thermostats into one large, decentralized “virtual” network. It’s estimated that VPPs could meet up to 15% of peak demand—five times more than today’s capacity from existing DERs.
MCE’s Richmond VPP pilot program is installing DERs of solar panels, battery storage, and smart appliances in participating homes. The intent is to create a more resilient and flexible grid by coordinating these resources across the community. A DER network can improve grid stability by reducing energy demand during peak times and sending clean power back to the grid when needed. Funded by the California Energy Commission, the pilot program supports grid reliability, reduces energy costs, and promotes equitable access to clean energy. MCE plans to expand VPPs across our service area.
Battery Storage
Another important development across the energy industry is the increase in energy storage, which is any technology that allows generated energy to be stored and used later. Energy storage supports grid stability by ensuring a reliable supply of clean energy to meet demand.
Utility-scale batteries store solar energy produced during the day and wind energy produced late at night. That clean energy is then released to the grid during peak demand periods, when renewable generation is lower.
Battery systems on homes and businesses help customers save money and provide backup power during outages.
Demand Response
Demand response programs are expanding to manage electricity during peak times. Programs like MCEs Peak Flex Market incentivize customers to use less power during times of high demand. High-demand times include peak hours between 4 p.m. and 9 p.m. or during extremely hot summer days or freezing winter nights. In return for reducing their energy usage, program participants could receive discounts on their energy bills or even bill credits.
Electrification
In California, new laws require that homes and businesses move away from natural gas and toward electric systems. This change means using electric appliances like heat pumps for heating and cooling and electric or induction stoves for cooking. MCE’s Home Energy Savings program supports this transition by offering incentives and resources for upgrading to electric appliances and improving home energy performance.
Electrifying your home or business reduces pollution and makes more energy-efficient buildings. As new homes are built or renovated, these changes will help lower energy costs and create greener communities.
Looking Ahead
Transformations in industry have always been a part of progress. Just as society shifted from oil lamps to electricity and from horse-drawn buggies to cars, we are now transitioning from fossil fuels to clean energy. By embracing these changes, we can help create a more sustainable, efficient, and brighter future for everyone.
