Building Resiliency from Within

California is facing the dual challenges of decarbonizing its electric grid and addressing spikes in electricity demand due to ever more frequent and severe heat waves. Decarbonization requires increasing the supply of energy from renewable sources like wind and solar. However, these intermittent energy sources may not be available when energy demand is highest. When electricity demand outpaces energy supply, utilities are forced to turn on polluting “peaker plants,” or in extreme cases, institute rolling blackouts.

In response, the state pursued several strategies to address both the supply and demand sides of the energy equation. One such strategy is residential demand response software that encourages utility customers to reduce their energy use when the electric grid is stressed. OhmConnect is the leading independent company in this space, with more than 200,000 users in California who have saved a total of nearly nine gigawatt-hours of energy – roughly the equivalent of powering nearly seven million homes for an hour.

This Electric Program Investment Charge grant project sought to determine the most cost-effective ways of acquiring new demand response customers and reducing peak residential energy demand. The project set a goal of acquiring at least 40,000 new customers and delivering 25 megawatts in energy savings during the peak periods of August and September 2021, or approximately enough energy to power 19,000 homes.

The project largely achieved its main goals by enrolling more than 41,000 new customers and achieving 28.8 megawatts of new energy reductions by the end of summer 2022.

The addition of 28.8 megawatts of flexible demand not only relieves grid stress in the immediate term but also mitigates the need for fossil-fuel powered “peaker” power plants, which are often located in or near disadvantaged communities, posing significant health risks to nearby residents.