Energy provider PG&E is experimenting with "precise grid surgery" as part of its VPP (Virtual Power Plant) pilot program this summer.

PG&E, the California-based utility company, has announced a new initiative called the SAVE (Seasonal Aggregation of Versatile Energy) program. This program aims to optimize the grid by leveraging behind-the-meter resources, such as smart electric panels from SPAN and Tesla, and residential batteries from Sunrun.

The SAVE program is a significant step forward, as it involves complex, predictive load shaping and the possibility of load limiting or hourly operational envelopes. This approach, while used in parts of Europe, is relatively new to the US. The program's goal is not to determine the best approach to Virtual Power Plants (VPPs), but rather to shed light on where and when value can be gained in the alignment across assets.

The program is designed to meet neighborhood-level constraints, rather than broad system peaks. This approach allows PG&E to manage the grid more efficiently, ensuring a stable supply of electricity during peak demand periods.

Participants in the SAVE program, including Sunrun battery customers and Span panel owners, will receive flat-rate incentives. Sunrun battery customers will receive $150 per battery, while Span panel owners can earn up to $250. These incentives are based on their participation in events throughout the summer.

PG&E will send week-ahead hourly signals and daily adjustments to its aggregation partners, Sunrun and Span. The utility aims to coordinate up to 1,500 residential batteries and 400 smart electric panels. The added complexity of this summer's pilot lies in the load shapes that PG&E is asking its partners to match, as the needs of the grid are different in different regions and change over time.

The success of the SAVE program in meeting PG&E's expectations could lead to questions about long-term participation incentives in the future. If the program proves successful, it could pave the way for potential scale in the future, helping PG&E to meet its grid needs more efficiently.

The SAVE program is currently funded by ratepayers and aims to provide insights into how resources behave when looking at them from a distribution perspective. The program's goal is to prove the model for precision grid surgery, addressing the industry challenge of unlocking additional capacity that Distributed Energy Resources (DERs) could provide and leveraging that capacity for grid planning.

In the past, PG&E has faced challenges with VPP pilots. For instance, its previous VPP pilot with Sunrun in 2023 involved more than 8,000 residential batteries, but failed to meet the anticipated capacity due to many batteries not responding. The SAVE program, with its focus on precision and incrementality, aims to address these challenges and ensure a more successful outcome.

In conclusion, the SAVE program represents an exciting development in the field of grid optimization. By leveraging smart technology and the collective power of residential batteries and smart electric panels, PG&E hopes to meet its grid needs more efficiently and pave the way for a more sustainable energy future.