CPUC just unlocked dynamic rates—time to ship “rates-as-a-feature”

Hi there,

California just greenlit dynamic hourly retail pricing—the policy spine VPPs, EV managed charging, and smart-appliance stacks need. Treat “rates vs. VPPs” as convergence: win by optimizing customer bill arbitrage while stacking grid-service revenues. CPUC’s long-term EE goals add durable budget for demand-side tech under these rates. Connecticut provides the template now—upfront rebates + performance incentives to scale residential storage VPPs (~25 MW year one). Early signs of interconnection relief improve COD timelines and financeability, while UK and Western Australia signal ongoing BESS capital demand. Offshore wind headwinds (USDOT port funding pulls) tighten ISO-NE capacity—near-term upside for fast-to-build BESS/peakers/DRO.

🔦 Signals Worth Monitoring

🔨Headline: CPUC issues guidance to enable dynamic hourly retail rates

What Happened: California advanced a framework for dynamic retail pricing to unlock load flexibility and DER/VPP participation.

Why Founders Should Care: Creates a policy runway for VPPs, smart appliances, EV managed charging, and “rates-as-a-feature” products. Design for CA first; other ISOs will follow.

🔨Headline: Dynamic pricing vs. VPPs debate heats up in CA

What Happened: PV Magazine interview with dynamic-pricing pioneer Ed Cazalet argues subscription-based dynamic rates are superior to VPPs for scale; notes CPUC’s pending dynamic-rate framework and warns against more pilots.

Why Founders Should Care: Go to market should assume rates + VPPs are converging—optimize for customer rate arbitrage and grid services; design products that plug into dynamic retail pricing.

🔨Headline: CPUC locks in new long-term energy-efficiency goals

What Happened: Commission adopted 2026–2037 EE objectives the same day it advanced dynamic rate guidance, reinforcing demand-side resources as core reliability tools.

Why Founders Should Care: Expect bigger, longer-dated budgets for load flexibility measures that pair naturally with VPPs (smart thermostats, heat pumps, EV managed charging).

🔨Headline: CT launches AI-driven residential VPP push

What Happened: Connecticut Green Bank partnered with GoodLeap to expand home-battery VPPs using the company’s GoodGrid AI; targets 3,000 subscribers (~25 MW) in year one. Upfront rebates of $7k–$8k plus performance incentives aim to lift residential storage enrollment. Eversource reports 46 MW of battery capacity already managed across CT/NH/MA.

Why Founders Should Care: Clear demand-side capex + incentive stack to build against (hardware, financing, aggregation ops). Fast path to MWs with state-backed CAC reduction.

🔨Headline: Interconnection queues show first signs of easing with reforms

What Happened: Fresh LBNL datasets (updated Aug) + reporting indicate queue sizes began shrinking in 2024 as Order 2023-style reforms took hold.

Why Founders Should Care: Still slow, but momentum is improving. Target ISOs/utilities with cluster study progress; earlier interconnect = cheaper finance and faster revenue.

🔨Headline: UK’s National Wealth Fund + partners commit £500M to BESS; NatPower announces separate £1B Teesside GigaPark

What Happened: NWF/Aware Super/Equitix backed Eelpower; separately, NatPower unveiled a 1-GW/8-GWh BESS at Wilton International, fully privately financed.

Why Founders Should Care: Storage remains investable—even in volatile markets. U.S. integrators and software/controls vendors should scout UK procurement and JV routes.

🔨Headline: Western Australia launches 2.4 GWh CIS tender for long-duration storage

What Happened: West Aus government opened tenders to deploy ~2.4 GWh of BESS under its Capacity Investment Scheme.

Why Founders Should Care: Global demand for 2–4-hour systems is surging. U.S. tech with robust supply chains can export controls, safety, and project delivery know-how.

🔨Headline: DOE awards $35M to 42 lab-to-market energy projects

What Happened: DOE’s Technology Commercialization Fund selected 42 projects spanning grid security, AI, nuclear, and advanced manufacturing; total public/private funding tops $57.5M

Why Founders Should Care: Non-dilutive dollars + lab IP access. Great partner-match opportunities and a signal that AI-for-grid and nuclear toolchains are hot.

🔨Headline: DOT pulls $679M for U.S. offshore-wind port upgrades

What Happened: USDOT terminated funding commitments for a dozen port/shoreline projects intended to serve OSW, citing project delays/uncertainty.

Why Founders Should Care: Port bottlenecks won’t clear soon—assume slower OSW logistics timelines and re-price EPC risk. Look for state/utility workarounds and private capex filling the gap.

🔨Headline: ISO-NE flags higher reliability risk if Revolution Wind stays halted

What Happened: After BOEM’s stop-work order, ISO-NE warned delays to the 704-MW project raise regional reliability risk; project is in capacity planning.

Why Founders Should Care: Policy risk now directly touches capacity adequacy. Expect tighter RA positions, pricier PPAs, and upside for fast-to-build capacity (BESS/peakers/DRO).

📌 RFP Bulletin

NYSERDA Bulk Energy Storage RFP (1 GW, Index Storage Credit)

📅 Key Dates: Step One due Sep 4, 2025, 3:00 p.m. ET
🎯 Focus Areas: Grid-scale storage (all chemistries), NYISO participation
🗺️ Region: New York, USA
🔗 Link: NYSERDA Bulk Energy Storage – Step One portal
🗒️ Our Notes: First of three bulk procurements under NY’s 6 GW roadmap; ISC contract structure improves revenue certainty—good for bankability.

Singapore EMA–KETEP 4th Joint Grant Call (Smart Grid R&D)

📅 Key Dates: Deadline Sep 30, 2025 (SGT)
🎯 Focus Areas: Smart grids, cyber-resilience, renewables integration, network optimization
🗺️ Region: Singapore & Korea (bilateral teams)
🔗 Link: EMA–KETEP Joint Call
🗒️ Our Notes: Requires SG–KR collaboration; strong fit for grid software, AI-ops, and microgrid control with utility pilots.

Activate Fellowship — Cohort 2026 (Berkeley Lab, Boston, etc.)

📅 Key Dates: Opens Sep 9, 2025; closes Oct 28, 2025
🎯 Focus Areas: Hard-tech commercialization (materials, energy, grid, climate)
🗺️ Region: United States (multiple nodes)
🔗 Link: Activate Fellowship
🗒️ Our Notes: Two-year stipend + lab access; tailor a validation plan with industrial advisors and paying pilots.

Techstars Alabama EnergyTech Accelerator (Fall 2025)

📅 Key Dates: Final deadline Sep 8, 2025
🎯 Focus Areas: Grid, mobility, energy transition solutions
🗺️ Region: USA (Birmingham)
🔗 Link: Techstars Alabama EnergyTech
🗒️ Our Notes: Corporate-connected program (Alabama Power & partners); fast path to pilots in Southeast utilities/industrial.

Continue the conversation in Slack by joining the #energy-briefing channel.

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