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SVCE approves five‑year DERMS agreement with Lunar Energy to expand demand flexibility
Summary
The board unanimously adopted a resolution authorizing the CEO to execute a five‑year main services agreement with Lunar Energy for a distributed energy resource management system (DERMS) and related services, with a not‑to‑exceed amount of $971,238; the agreement is intended to enable demand‑flex programs and new battery initiatives.
Silicon Valley Clean Energy’s board on May authorized the chief executive officer to negotiate and execute a five‑year main services agreement with Lunar Energy for a distributed energy resource management system (DERMS) and associated services, subject to a not‑to‑exceed amount of $971,238. The board approved the resolution unanimously.
Staff described the DERMS as a software platform that connects and dispatches distributed energy resources — residential batteries, EVs, thermostats, commercial building systems and other devices — so SVCE can capture wholesale energy arbitrage and resource adequacy value, and scale programs that shift load into midday solar hours. Staff said Lunar was selected from a joint solicitation with Peninsula Clean Energy; SVCE received 17 proposals and negotiated a scope that includes four parts: the DERMS platform, on‑ramps for SVCE programs, an enabling agreement to use existing batteries in the service area, and design work for a new SVCE battery program.
Don (staff) told the board, “At no time in the history of the California grid has there been a bigger need and a bigger opportunity, to shape customer demand.” Staff emphasized that the tool is not a program itself but an enabling platform for multiple programs and for measuring and valuing flexible load.
Board members asked about program scope, potential future budgets, customer acceptance and vendor capability. Staff said Lunar manages the world’s largest third‑party residential battery fleet and that joint procurement with Peninsula Clean Energy produced a substantial vendor discount. Staff also said board approval covers the main services agreement and initial scopes; implementation details, incentives and any large‑scale battery program design would return to the board for separate approval.
The motion to authorize the CEO to execute the main services agreement was made by Director Wallia and seconded by a board member; the roll call vote was unanimous.
Staff said the DERMS contract will be the foundation for demand‑flex pilots, a new battery program, a commercial/industrial demand response program and a smart‑thermostat program, and that additional program contracts and budgets will be brought forward for board review.
