California State Budget Agreement Recognizes Value of Distributed Resources, Geothermal

Three-party agreement preserves funding for Demand Side Grid Support (DSGS) program, CalSHAPE funding still needed 

SACRAMENTO, CA — As legislative leaders finalize the state budget, Advanced Energy United is glad to see continued funding for the Demand Side Grid Support (DSGS) program, an important state program that pays for clean emergency power when the grid is under stress. This critical funding will prevent the disenrollment of thousands of devices that can provide hundreds of megawatts of power, providing a reliability buffer for the state during hotter months. This allocation sends a strong signal to the advanced energy industry that California is investing in modernizing our grid and recognizing the value of distributed resources. 

The three-party budget agreement includes a $22 million transfer to DSGS from the Distributed Electricity Backup Assets (DEBA) program. It also includes $10 million for the exploration and development of geothermal resources.   

“Every summer, California is asking more and more of its electricity grid, which is unsustainable without more resources,” says Advanced Energy United’s California Director Brandon Garcia. “These funding allocations are investments towards a more modern grid and prepare California to address reliability issues in the near- and long-term. There is broad recognition that DSGS works and funding this program is a practical solution that benefits all Californians. Investing in developing geothermal resources also shows California’s leadership in advanced energy during a time of energy uncertainty.”

Advanced Energy United urges state leaders to finalize a funding agreement in August that preserves the California Schools Healthy Air, Plumbing and Efficiency Program (CalSHAPE) and directs available interest funding from that program toward DSGS, which will provide certainty for customers that the program will continue delivering affordability and reliability benefits to Californians.