Piclo opens California grid flexibility marketplace

The distributed-energy resource (DER) market provider enables operators of batteries, smart electric vehicle (EV) chargers, and electricity demand-response systems to sell flexible grid storage capacity to utilities.
Image: U.S. Department of Energy

Piclo, a DER marketplace operator, has announced the launch of its grid flexibility platform in California.

The marketplace enables small-scale, “distributed” solar-plus-battery systems, standalone energy storage equipment, smart EV chargers, and demand-response systems to sell flexible energy capacity to electric utilities and community choice aggregators (CCAs) across the state. CCAs enable energy users to pool their buying power to secure energy from entities other than traditional utilities.

Under Piclo’s system, flexible energy resources can dispatch power, or reduce power usage, from specific locations at peak electricity-demand hours, delivering high-value electricity when it is needed most.

Sunrun, among the largest residential solar installers in the United States, was the first partner to list assets on the marketplace, adding more than 30 MW of flexible energy storage capacity. Piclo said yesterday, additional DER aggregators will be announced within a week.

The aggregation of flexible energy resources enable small-scale energy assets to participate directly in the state’s grid resource adequacy requirements.

Piclo said its platform streamlines procurement for CCAs, enabling them to secure resources before the upcoming California Energy Commission’s forecast deadline of April 1.

The resource adequacy program helps state regulators ensure the safe and reliable operation of the grid in real-time, providing sufficient resources to the California Independent System Operator grid when and where needed. The program is a legal obligation for all load-serving entities within regulator the California Public Utilities Commission’s jurisdiction, including for investor-owned utilities, energy service providers, and CCAs. The program is also designed to incentivize the siting and construction of the new resources needed for future grid reliability.

“While the challenges facing California’s grid are well known, what’s less recognized is the significant amount of untapped flexible capacity across the state,” said Piclo CEO James Johnston. “By providing a platform for DER owners and aggregators to monetize this capacity, we’re unlocking value while helping utilities and CCAs achieve better outcomes.”

Piclo added, “These resources will help CCAs meet their resource adequacy obligations by reducing peak load in 2026 and beyond.”

DER aggregations, often referred to as virtual power plants (VPP), have shown promise creating a more reliable, flexible, and disaster-resilient electric grid while saving costs for ratepayers. Jigar Shah, former US President Joe Biden’s head of the US Department of Energy Loans Programs Office, was a vocal supporter of VPP buildout.

It remains to be seen what goals the new US administration will have for VPPs under Secretary of Energy Chris Wright.

A diagram of virtual power plant integration. Image: Rocky Mountain Institute

From pv magazine USA.

Written by

  • Ryan joined pv magazine in 2021, bringing experience from a top residential solar installer and a U.S.-based inverter manufacturer. He holds a Master of Energy and Environmental Management degree at the University of Connecticut and a degree in Management with a certification in Sustainable Business Practices from the Isenberg School of Management at the University of Massachusetts, Amherst.

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