CalChoice has partnered with Olivine Inc. to offer community choice aggregator (CCA) commercial customers an opportunity to join Climate Response Virtual Power Plant (VPP), a program designed to help nonresidential customers mitigate the grid impacts of climate change while earning revenue. CalChoice members Apple Valley Choice Energy, Energy for Palmdale’s Independent Choice, Lancaster Energy, Pico Rivera Innovative Municipal Energy, Pomona Choice Energy, Rancho Mirage Energy Authority and San Jacinto Power have joined this program, giving their customers a chance to contribute toward a more sustainable future.
“As the summer season winds down, heatwaves remain active across California,” said CalChoice Executive Director Jason Caudle. “CalChoice encourages eligible CCA commercial customers to consider enrolling in the ClimateResponse VPP program to help maintain a stable power supply and prevent rolling blackouts.”
Until October 31, 2023, ClimateResponse VPP will provide CCA commercial customers with financial rewards for temporarily reducing their energy use at times of grid stress, high prices, extreme weather conditions or other grid emergencies. Qualified participants include large nonresidential customers (utility account holders for buildings where the electric loads are typically above 500 kW) that are able to temporarily adjust energy consumption.
By reducing energy use during high demand periods, CCA commercial customers can not only lower their energy costs, but also contribute to overall grid stability. Participants will earn $2 for each kilowatt per hour (kWh) of verified incremental load reduction provided during a dispatch period. In addition, those who exceed their nomination capacity will receive a payment of $1 per kilowatt (kW) for each hour of excess.
The ClimateResponse VPP program is free to join, there are no penalties and participants will have complete flexibility in how they choose to reduce energy and will always be in full control of their building and resources. Energy reduction methods vary and may include taking actions to adjust energy intensive activities and equipment, which is why Olivine can provide participants with input on energy reduction strategies if needed.
“CalChoice is proud to partner with Olivine on this important initiative,” continued Jason. “The program optimizes energy efficiency, generates revenue and protects our power supply.
CalChoice is a California Joint Powers Authority (“JPA”) that provides Community Choice Aggregation (“CCA”) support services, which include energy portfolio management, power procurement and trading, settlements and invoice validations, regulatory compliance, regulatory advocacy, financial and accounting, and rate-setting support functions. Current operational CalChoice members include Lancaster Energy, Apple Valley Choice Energy, Pico Rivera Innovative Municipal Energy, San Jacinto Power, Rancho Mirage Energy Authority, Pomona Choice Energy, Santa Barbara Clean Energy and Energy for Palmdale’s Independent Choice. By joining together, CalChoice members are able to cut costs through economies of scale. Learn More at californiachoiceenergyauthority.com