Richmond Advanced Energy Community (AEC) Phase II Project

Resiliency, Health, and Safety Grid Decarbonization and Decentralization

Zero Net Energy (ZNE) Alliance

Recipient

Recipient Location

3rd

Senate District

4th

Assembly District

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$2,586,640

Amount Spent

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Active

Project Status

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Project Update

In 2022, the Richmond AEC project engaged MCE Clean Energy – whose service territory includes Contra Costa, Marin, Solano, and Napa Counties -- as a full partner in the development of the Richmond DER Community. MCE provided substantial resources by focusing its energy storage and related DER programs on AEC project sites in Richmond, including affordable residential Zero Net Carbon Ready (ZNCR) homes, and larger commercial sites. Additionally, engagement with MCE enabled integration of flexible loads from both ZNCR homes and commercial facilities with the new DER Management System (provided via the AEC grant), allowing load balancing, customer bill savings, and reduced energy procurement costs.

The project team also completed the build-out of an open architecture DERMS/VPP software platform that allows integration with CAISO market operations, renovated its first ZNCR home and integrated its load with the VPP. Four additional homes are planned for renovation within the project period. Additionally, the team began customer outreach and engagement to enroll commercial sites, prioritizing sites with existing solar and substantial potential for economic deployment of battery energy storage. Multiple site walks were conducted and the team is now in the process of onboarding equipment installers who will deploy batteries, as well as other flexible load devices such as heat pump water heaters at qualified residential and commercial sites.

The Issue

To achieve robust zero carbon emissions targets, cities and load-serving entities require advanced energy solutions that enable the cost-effective deployment and integration of distributed and renewable energy resources, and the cost-efficient rehabilitation of homes to a near Zero Net Carbon standard. Achieving these outcomes in a disadvantaged community requires a combination of innovative technology, scaled finance, and the inclusive engagement of cities, NGOs, and community residents.

Project Innovation

The Richmond Advanced Energy Community (AEC) Phase II project demonstrates two breakthrough AEC models that will advance state and local goals for energy and carbon savings, while maximizing benefits to the local community, the grid, and low-income residents in greatest need. These include: (1) Implementation of a DER Community program that optimizes economic and resilience value at the community and grid level, while directing new revenues and societal benefits to low-income residents residing in California's Disadvantaged Communities (DACs); and (2) Implementation of the Zero Net Carbon Ready (ZNCR) Homes Program to finance the rehabilitation of blighted homes to ZNCR status and their re-sale as affordable infill and retrofit properties to low-to-middle income residents using capital provided by Social Impact Bonds. The scale-up of these strategies will be supported by preparation of an AEC Solutions Toolkit and an AEC Finance Toolkit disseminated through the Local Government Commission and the state's leading network of regional climate action collaboratives.

Project Benefits

This Agreement will support the development and commercialization of technological advancements and breakthroughs that overcome barriers to the achievement of California's statutory energy goals by: 1) demonstrating how DER aggregation can balance local energy load and generation to reduce transmission and distribution costs and provide value to local communities; 2) demonstrating how a Social Impact Bond can be used to rehabilitate abandoned, blighted, and distressed properties to be ZNCR and sell them at market rates to low-to-middle income first-time homebuyers; and 3) demonstrating an energy efficiency financing model and related tools and policies that overcome the tenant/landlord split incentive.

Affordability

The project will: 1) Reduce customer costs via installation of high efficiency and all-electric appliances; and 2) Enable ratepayers to participate in the emerging CAISO market.

Reliability

The project will enable participating homes and businesses to reduce peak load, shift energy use away from the evening ramp period, and participate in DER aggregation to balance local generation, storage, building loads, and grid.

Safety

Safety will be improved by: 1) Reducing the dangers of gas leak and explosions by endeavoring to replace natural gas appliances in residences; and 2) Decreasing the likelihood that contractors install devices in an unsafe manner.

Key Project Members

Richard Schorske

Founder/Executive Director

Subrecipients

City of Richmond

KILOWATT ENGINEERING, INC. dba kW Engineering, Inc

Orrick, Herrington & Sutcliffe LLP

Olivine, Inc.

Local Government Commission

Richmond Community Foundation

NHA Advisors, LLC

GRID Alternatives

Cohen Ventures, Inc. dba Energy Solutions

TRC Solutions, Inc.

Blue Strike Environmental, Inc.

Chaumette Consulting

Asian Pacific Environmental Network (APEN)