Generac Holdings announced that it has been selected to begin negotiations by the Department of Energy (DOE) to receive an award for a $50 million grant as part of the U.S. Grid Resilience and Innovation Partnership (GRIP). DO. The Grid Resilience and Innovation Partnerships (GRIP) Program, established by the Bipartisan Infrastructure Law, is a $10.5 billion investment to increase grid flexibility, improve the energy system’s resilience to extreme weather, and ensure that American communities have access to affordable, reliable energy when and where they need it.
Generac, in partnership with the California Water Association (CWA), aims to integrate clean energy solutions with water utilities statewide. The total investment is estimated at approximately $100 million for approximately 100 California water utilities, primarily in underserved communities (DACs).
“We have been providing reliable backup power solutions for critical infrastructure, such as water and wastewater utilities, in California and across the U.S. for more than 65 years,” said Aaron Jagdfeld, president and CEO of Generac. He added, “We are honored to have been selected by the DOE to expand that scope by delivering these innovative solutions for clean, resilient and efficient energy for California and its electric grid.”
Under the project, microgrids, which will utilize battery energy storage and be managed by distributed energy resource management systems (DERMS), will form virtual power plants (VPPs) capable of providing reliable load reduction during times of grid stress. Additionally, with at least 55% of sites in DACs, the project will lead to improved air and water quality, reliability and operational savings.
“I am thrilled that the Generac Power Systems project has been selected for funding and I thank the U.S. Department of Energy for their continued support of innovations that advance California’s clean energy goals,” said David Hochschild, President of the California Energy Commission. “This effort will install battery systems at water utilities across the state, supporting resiliency during local outages and increasing the reliability of the electric grid by providing backup power during extreme events.”
California’s electric grid is increasingly challenged by aging infrastructure, the increasing demands of electrification and the impacts of extreme weather. For example, during a ten-day heat wave in September 2022, the electricity grid was pushed to its limits and water utilities played a crucial role by providing backup power through fossil fuel generators. This situation underlined the urgent need for more sustainable and resilient energy solutions.
The project will create an estimated 200 union construction jobs and 33 direct jobs, contract approximately $27 million with companies majority owned or controlled by underrepresented individuals or groups of underrepresented individuals, and direct 59% of project benefits to DACs. Some or all of this project will be conducted in conjunction with the Northern California Laborers, Northern California Operating Engineers, Operators Local Union, Teamsters Local Union, Laborers Local Union, Carpenters Local Union, Masons Local Union, or the IBEW Local Union.
News item from Generac
