California is increasing its lean into demand response programs to better manage energy consumption, inviting multifamily communities to participate and earn cash incentives for property owners and residents.
As reported in the North American Electric Reliability Corporation’s (NERC) 2023 Summer Reliability Assessment, Independent System Operators (ISO), including California (CAISO), are facing a high risk of “energy supply shortfalls” due to predictions of higher temperatures, wildfires, and drought. NERC estimates CAISO’s energy reserve during peak hours of energy consumption, coupled with outages and hazardous events, to land well below zero at -11.9%.
In other words, NERC has projected California to experience limited to no power during these extreme conditions.
In September 2022, California faced similar conditions and utilized demand response programs to reduce load consumption and prevent blackouts. These programs worked by using residential consumer participation to reduce or shift their energy usage during peak periods, optimizing the available capacity of CAISO, and “keeping the lights on.” Demand response programs were (and continue to be) carried out using in-home technologies like smart thermostats and connected water heaters, and through consumer load reduction campaigns like California’s Flex Alert programs.
Last year's events in California proved demand response programs can achieve fast-acting load reductions to prevent blackouts, and this evidence has led to the emergence of technology firms seeking partnerships with multifamily properties and homeowners across the state in order to deploy more demand-capable technologies and provide grid reliability.
However, integrating demand response programs can be a complex task for property owners, requiring serious investments of time and money. Coupled with the onslaught of program options, finding the right solution can become overwhelming and delayed.
That’s where Armada Power comes in. Through our patented water heater technology, Armada Power is able to assist California property owners and residents in avoiding a power grid collapse.
Electric water heaters are the second largest electricity-consuming appliance in the home, trailing only HVACs. Additionally, they are one of the most inefficient modern-day appliances, repeatedly heating and reheating water to maintain its temperature throughout the day, even though hot water is called into use for about five to eight hours per day.
For these reasons, water heaters are the ideal champions of demand response. They can shift up to one kW of energy without compromising the resident's comfort because the tank can store enough hot water to last for up to five hours. This capability allows California property owners and residents to participate in demand response events without amenity impact. Armada Power’s unique solution works by installing non-invasive hardware onto a units existing electric water heater and applying our two-way communication software to work in unison with the power grid. This allows property owners to participate in electric water heater-based demand response programs without investing the time and cost typically associated with demand response program installation and integration that other technologies may require. It’s truly a win-win.
It is not necessary to purchase a new smart thermostat or smart water heater to capitalize on this opportunity. Armada Power’s hardware and software system quickly installs onto existing electric resistive water heaters. Our solution accounts for all three participants of demand response programs - the property owner, the resident, and the utility, and satisfies each need.
Property Owner Features:
- Installs in 20 minutes
- Maintains water heater integrity; does not affect warranty or performance
- Provides maintenance alerts with optional leak detection
- Real-time water heater data
- Improved operational efficiencies
Resident Features:
- Transforms water heater into a smart appliance providing residents with more control over usage via a mobile app, including vacation mode and usage data
- Does not impact comfort
- Works seamlessly in the background
Utility Features:
- Provides thermal energy storage to help stabilize the power grid during extreme events and supports cold load pickup
- Sends up to 1 kW per device per event back to the grid
- Reduces generation strain
- Device-level revenue grade metering for accurate verification
It is important for any technology, product, or organization to recognize and prioritize user experience because, at the end of the day, it is the consumer who makes the greatest impact. Armada Power has incorporated the consumer's needs on every level, from resident to utility. California-based assessments like these: “Above-normal summer peak load and outage conditions could result in the need to employ operating mitigations (i.e., demand response and transfers… [and] load shedding may be needed under extreme peak demand and outage scenarios studied” (NERC, May, 2023 Summer Reliability Assessment, Pg 31) aren’t changing anytime soon.
So in light of the increasing risks of energy supply shortfalls, Armada Power will continue to pursue unique and thoughtful demand response solutions that work best for California (and other states) and help mitigate the risks of blackouts and emergency situations that pose a very real threat to the state's population.
If you’d like to discuss the demand response programs in California, please contact Armada Power’s Senior Vice President of Growth and Business Development, Kit Hagen, at [email protected].
Armada Power is a technology company that incorporates patented, behind-the-meter thermal storage into a secure platform providing millisecond grid response benefitting grid operators, utilities, and consumers. Follow Armada Power on LinkedIn or Twitter (@PowerArmada), or for more information visit our website at armadapower.com.
