Coalition Urges Newsom to Secure $75M for California's Grid-Stabilizing DSGS Program
A coalition has urged California Governor Gavin Newsom to secure at least $75 million to keep the Demand-Side, Grid-Support (DSGS) program running in 2026. The program, which helps stabilize the state's grid during heatwaves, is set to run out of funding by the end of the year, according to the coalition led by Advanced Energy United.
The DSGS program has proven its worth, with its Virtual Power Plant (VPP) option activated 16 times during the summer of 2024. If funded, the program could expand its battery VPP option to 1,300 MW in the next three years. The program offers four enrollment options, including Emergency Dispatch and Market-Aware Storage Virtual Power Plant Pilot.
Established following California's blackout and near-blackout grid events in 2020 and 2022, the DSGS program currently includes one of the largest VPPs in the world, with over 200 MW in capacity and 720 MW of customer battery capacity enrolled. Despite its success, the program's funding was cut by $18 million, leaving its future uncertain. The coalition now seeks $75 million to ensure its continuation, highlighting that it could provide up to $206 million in net cost savings to all Californians and result in up to $2 in customer rate reduction for every dollar invested.
With California's grid reliability and VPP program in limbo due to a $12 billion budget shortfall, the coalition around Advanced Energy United currently indicates a funding level of approximately $70 million for the DSGS program to remain operational in 2026. The coalition urges Governor Newsom to allocate at least $75 million to secure the program's future and maximize its benefits for California's residents.
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