PJM Politics & CA Cuts: Pencil Projects Without Subsidies

Hi there,

Storage is attracting serious capital, plug-and-play DERs are getting policy tailwinds, and data-center-adjacent sites are clearing permits—while CA’s VPP cut and PJM politics prove you need multi-revenue stacks that pencil without subsidies. Dive in for the tactics to copy and the open RFPs that could fill your pipeline.

Two quick things before we jump in this week.

1. Last week, we launched 9Z-Capital inside the Energy Storage Cluster—live founder↔investor matchmaking powered by your 9Z-NodeID, watchlists, and double-opt-in intros. If you’re building or backing storage and want curated connections when statuses change (e.g., Not Raising → Raising), this is where deals start.
   
   Apply for 9Zero Membership → https://members.9zero.com/signup
   (Already a member? Claim your NodeID in the cluster Slack.)

2. Quick favor: if you’ve been reading this a while, hit reply—tell me what’s working and what’s missing? I read and reply to all responses.

🔦 Signals Worth Monitoring

🔨Headline: $540 M financing for 200 MW/800 MWh Taft BESS in Massachusetts

What Happened: Flatiron Energy secured $540 million in financing commitments – including loans, preferred equity, and a tax‑credit transfer – to build the 200 MW/800 MWh Taft battery energy‑storage system in Uxbridge, Massachusetts. The company also plans a 168 MW/672 MWh BESS at a former coal plant and will use SK On’s repurposed EV‑battery lines to supply up to 7.2 GWh of cells.

Why Founders Should Care: The use of repurposed EV cells points to new supply chain models, while converting coal plant sites shows how founders can leverage brownfield locations and federal incentives to accelerate deployment.

🔨Headline: California lawmakers cut funding for its flagship VPP program

What Happened: Despite the DSGS program’s success, California’s legislature and Governor Gavin Newsom cut $18 million in funding, effectively defunding the program for 2026.

Why Founders Should Care: Even states on the frontier of climate policy can create policy whiplash. Invest in monitoring policy closely in the states you are active in, especially if you depend on funding from the state.

🔨Headline: California’s Demand Side Grid Support (DSGS) program proves cost‑effective

What Happened: A Brattle Group study found that California’s DSGS program enrolled about 700 MW of household battery capacity and could reach 1,300 MW by 2028. The program costs around $196 million but delivers benefits worth $223–$402 million, including avoided peaker‑plant operation. Participants are paid $62.10–$82.80 per kW and dispatch their batteries when CAISO day‑ahead prices exceed $200/MWh; a July 2025 test saw 100k batteries deliver 539 MW.

Why Founders Should Care: Data continues to show that virtual power plant (VPP) aggregation of home batteries can provide grid services at lower cost than gas peakers. Leverage this data in pitch decks for customers.

🔨Headline: Vermont eyes plug‑in solar legislation inspired by Utah’s success

What Happened: Vermont Senator Anne Watson plans to introduce legislation in 2026 to legalize plug‑in solar systems – small, UL‑listed units that plug into a standard outlet. Modeled on Utah’s recent law, the bill would remove interconnection agreements and registration; homeowners would simply notify their utility.

Why Founders Should Care: Founders developing portable solar, micro‑inverters, or plug‑and‑play storage can benefit from lower regulatory hurdles and broadened customer bases, particularly among renters and low‑income households.

🔨Headline: Dominion wins local approval for 100 MW/400 MWh Remington BESS

What Happened: After initial deferral over fire‑risk concerns, Fauquier County, Virginia officials approved Dominion Energy’s 100 MW/400 MWh Remington battery project. Dominion addressed safety by showcasing its Dry Bridge facility and committing to NFPA 855 standards. The BESS, near northern Virginia’s “data‑center alley,” will connect via existing 230 kV infrastructure, yet Dominion still plans to operate fossil‑fuel plants until 2039 and seeks a new gas plant.

Why Founders Should Care: Case study on how to navigate fire risk concerns from cities and towns for large-scale battery projects.

🔨Headline: BP cancels Rotterdam biofuels plant and reduces biofuel targets

What Happened: BP halted construction of its Rotterdam biofuels plant and dropped its goal to produce 100 k barrels/day of biofuels by 2030. The company also paused projects in Australia, Germany and the U.S., citing weak demand and focusing on co‑processing at existing refineries.

Why Founders Should Care: Founders in biofuels or sustainable aviation fuel should anticipate tougher capital requirements and slower scaling.

🔨Headline: Governors demand formal role in PJM Interconnection

What Happened: Governors from 12 states, led by Virginia’s Glenn Youngkin, urged formation of a “PJM Governors’ Collaborative” after capacity payments surged ~1,000 % because of soaring data‑center demand. They want a say in board nominations and market reforms; Pennsylvania Governor Josh Shapiro previously pushed for price ceilings on capacity auctions.

Why Founders Should Care: A formal state role could change capacity market rules, affecting revenues for power producers, storage developers, and demand‑response startups.

🔨Headline: California passes affordability package for electricity

What Happened: California’s legislature passed a package of energy‑affordability bills, including SB 254, which limits utility profit on wildfire‑hardening costs and creates a “transmission accelerator” to use public financing for high‑voltage lines. Advocates say using state financing could save ratepayers up to $3B/year.

Why Founders Should Care: Founders targeting California face policy‑driven grid upgrades; public financing could accelerate transmission and storage projects, while cost caps may curb utility spending.

📌 RFP Bulletin

California Green Business Network – Electrification Mini‑Grants

• 📅 Key Dates: Applications close Oct 24, 2025

• 🎯 Focus Areas: Small grants (75 grants of US$1,000) for certified green businesses to adopt electrification and energy‑efficiency measures such as HVAC tune‑ups, LED lighting, EV chargers, or heat‑pump retrofits.

• 🗺️ Region: CA

• 🔗 RFP Link: https://greenbusinessca.org/electrification-mini-grants/#:~:text=,li

• 🗒️ Our Notes: Highly accessible for small energy‑focused companies; simple application; encourages projects that improve energy efficiency and reduce greenhouse gas emissions.

California Energy Commission (CEC) – Distributed Resources for Innovative Vehicle Energization Strategies (DRIVES)

• 📅 Key Dates: applications are due Nov 21, 2025

• 🎯 Focus Areas: Projects that demonstrate grid‑connected or off‑grid charging and vehicle‑to‑grid solutions, improving interconnection and renewable integration for electric vehicles.

• 🗺️ Region: CA

• 🔗 RFP Link: https://www.energy.ca.gov/solicitations/2025-09/gfo-25-301-distributed-resources-innovative-vehicle-energization-strategies

Advanced Energy Fund Grant – Ohio Department of Development

• 📅 Key Dates: Applications close Oct 31, 2025

• 🎯 Focus Areas: Grants for energy‑efficiency and advanced‑energy projects that reduce energy usage, lower fossil‑fuel emissions, and support job creation.

• 🗺️ Region: Ohio

• 🔗 RFP Link: https://grantsportal.ohio.gov/Public/FundingOpportunityDetails?detailid=d55fc301-8089-f011-8f12-00505680042e

• 🗒️ Our Notes: No matching funds required. Proposals must demonstrate significant energy and cost savings. An excellent opportunity for energy startups or pilot projects located in Ohio.

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

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