More than half of the U.S. experienced a heat wave last week, with excessive heat warnings that continued through the weekend. As scorching triple-digit temperatures strain the electric grid once more, I’m reminded just how frequent these chart-busting heat emergencies have become in recent years. 

Last September, California experienced a historic heat wave that hit new records for peak electricity demand and pushed the grid to its breaking point. But that record-breaking grid emergency probably won’t remain a record for long - as extreme weather events become more common and more intense due to the impacts of climate change, we can expect more frequent threats to grid stability. We’re barely into August, but Leap has already responded to dozens of demand response (DR) events across California, New York, Texas and New England in 2023. 

We already have the technology we need to reshape our power system to adapt to this new reality. According to Wood Mackenzie, the market for distributed energy resources (DERs) is expected to nearly double in capacity by from 2022 to 2027, meaning massive adoption of grid-interactive energy technologies like electric vehicles (EVs), smart thermostats, battery storage systems, electric water heaters and other smart devices in the coming years. 

By incentivising a diverse array of these energy technologies to participate in virtual power plants (VPPs), especially during the summer season, we can build more grid resilience into the power system while retiring fossil fuel-based resources. 

Dispatching through a sustained grid emergency

Throughout California’s nine-day heat emergency in 2022, Leap worked closely with 24 of our technology partners to dispatch their energy assets in a way that would maximize both their revenue and support for the grid, while minimizing impact on their customers. Through our platform, Leap virtually aggregated over 21,000 unique energy devices to deploy about 1,000 Mwh to the grid. Those devices included smart HVAC systems, EV chargers, smart thermostats, residential and commercial battery storage systems, water pumps and building management systems. 

Leap’s performance demonstrated that networks of distributed energy resources (DERs) can provide effective, sustained support to the grid to prevent outages during periods of high demand. Indeed, flexible loads may be the only resources that have more to give during a heat wave.

One key takeaway from our sustained response over the course of the emergency is that diversified portfolios of DERs can provide significant benefit to the grid. Through aggregation, smaller devices can make frequent, meaningful contributions to grid stability as part of VPPs without meaningful disruptions to the operations or comfort of the homes and businesses using them. And many of them can do it day after day after day (+ five more days).

Flexible programs for flexible loads

Leap’s software platform is integrated with a wide array of grid services opportunities, including both utility and market-integrated programs. These different offerings allow us to provide more value to the grid - and also more value to our technology partners. Programs that only allow dispatches during peak days and emergencies - or conversely, that require all participants to respond even during mild system conditions - limit the pool of customers who can participate. Offering a variety of different constructs for grid services creates more flexibility for DERs to participate without compromising the devices’ primary functions. 

Using this approach, we were able to work with each of our partners to find the best-fit opportunities for their portfolios, maximizing their earnings while bringing critical flexibility to the grid. Market-integrated opportunities are key to maximizing this value as they are less prescriptive than conventional, emergency-only utility programs. 

Some of Leap’s assets dispatched for eight or nine days in a row during the California heat wave, while others participated in more targeted responses to peak emergency events. In part, this varied by technology type. Some technologies - batteries and EVs, for instance - performed daily to deliver grid relief, whereas others - like water pumping systems - participated during the “peakiest” days when reliability was most at risk. Getting the max from all of these resources is key to preserving reliability, stabilizing electricity prices and lowering carbon emissions.

DER-driven grid reliability

Demand-side energy resources helped save the day during California’s 2022 emergency, but a lot of value was left on the table for the thousands of DERs not integrated into a grid services program. Grid operators’ reliance on voluntary reductions from energy customers does not make for a reliable model to meet long-term grid stability needs. Demand flexibility that’s forecasted and integrated into markets is a surer bet. 

It’s time to scale up VPP solutions to provide reliable, carbon-free support that help balance renewables while maintaining reliability. The effective response of demand flexibility providers like Leap during last year’s heat wave - and in several so far in 2023 - demonstrates that DERs are up to the challenge. It’s hot and getting hotter - let’s make sure the grid is ready.