The U.S. Department of Energy selected Generac Holdings, Inc. on October 21, 2024, to enter into negotiations for a $50 million grant under the Grid Resilience and Innovation Partnership (GRIP) program, established by the Bipartisan Infrastructure Law. Generac, working with the California Water Association, will use the award toward an estimated $100 million total project investment to install battery-storage microgrids at approximately 100 water utility sites across California. The microgrids will be managed by distributed energy resource management systems and networked into virtual power plants capable of delivering load reduction during periods of grid stress.
What it means
The project addresses the role that fossil-fueled backup generators played during California’s 10-day heat wave in September 2022, when water utilities provided backup power as the state’s electric grid was pushed to its limits. The project is expected to improve grid reliability, air quality, water quality, and operational savings for the utilities involved, according to Generac. California Energy Commission Chair David Hochschild said the selection advances California’s clean energy goals.
At least 55% of the roughly 100 project sites are located in Disadvantaged Communities, and Generac said 59% of project benefits will be directed to those communities. The project is expected to generate an estimated 200 union construction jobs and 33 direct jobs, with approximately $27 million contracted to businesses majority owned or controlled by underrepresented persons or groups. Generac said project execution may involve collaboration with Northern California Laborers, Northern California Operating Engineers, Teamsters Local Union, IBEW Local Union, and several other union affiliates.
Key facts
- $50 million: DOE GRIP grant award to Generac Holdings, Inc. (subject to negotiation)
- ~$100 million: Estimated total project investment, according to the company
- $10.5 billion: Total size of the DOE GRIP program, established by the Bipartisan Infrastructure Law
- ~100: California water utility sites to receive battery-storage microgrids
- At least 55%: Share of project sites in Disadvantaged Communities
- 59%: Share of project benefits directed to Disadvantaged Communities, according to the company
- 200 (estimated): Union construction jobs to be created, according to the company
- 33: Direct jobs to be created, according to the company
- ~$27 million: Contracts to be awarded to businesses majority owned or controlled by underrepresented persons or groups, according to the company
- Collaborating partner: California Water Association
Source: Generac Holdings, Inc. news release (PR Newswire)