Procurement is heating up

Hi there,

AI-driven load is colliding with policy whiplash—and it’s creating a near-term revenue window for anyone who can turn existing assets into dispatchable capacity. California’s DSGS cuts and Nevada’s 15-minute netting force GTM shifts toward bankable value streams (RA, ancillaries, bill savings) and tighter load shaping. Meanwhile, microgrids are moving from “battery only” to hybrid architectures (battery + hydrogen) with 48-hour resilience, and C&I solar retrofits are penciling as energy-as-a-service in high-cost markets.

Procurement is heating up: DOE’s AI data-center + energy campuses (30-year footprints), SCPPA’s rolling storage/renewables, and NorthWestern’s all-source capacity need. Add city-level heat-pump mandates and LADWP’s free solar+storage program, and you’ve got immediate markets for controls, DERMS, microgrid upgrades, and firming capacity.

Dive in for the exact signals, where margin lives right now, and the RFPs worth your time.

🔦 Signals Worth Monitoring

🔨Headline: California lawmakers cut funding for the state’s flagship VPP program (DSGS)

What Happened: The legislature declined to renew DSGS funding; analyses indicated the battery VPP track could scale to ~1.3 GW and deliver ~$200M in net system savings if continued.

Why Founders Should Care: Expect scarcer incentive dollars and more competitive CPUC/IOU pilots—prioritize bankable value streams (RA/ancillaries/retail bill savings) in your CA go-to-market.

🔨Headline: C&I solar arrays are being converted into microgrids to create new revenue streams

What Happened: In an interview, SolMicroGrid CEO Kirk Edelman said that existing commercial & industrial (C&I) solar arrays can be turned into local microgrids by adding battery storage and smart control systems. He explained that a “classic” microgrid must be able to operate independently from the main grid, and that the ability to arbitrage time‑of‑use rates and participate in demand‑response programs is now a major revenue driver. Arrays in states with high electricity prices (e.g., Massachusetts) are especially profitable because stacked incentives and demand response payments can be added to savings from avoided utility power.

Why Founders Should Care: Energy entrepreneurs can target C&I customers with existing solar arrays and offer an “energy‑as‑a‑service” microgrid upgrade. Adding batteries and sophisticated control software allows DER owners to peak shave, arbitrage tariffs and sell capacity into demand response programs, creating recurring revenue for microgrid providers and hosts. The model works best in high cost power markets, guiding founders toward geographic priorities.

🔨Headline: Energy Vault and PG&E deploy hybrid battery‑plus‑hydrogen microgrid to improve wildfire resilience

What Happened: A partnership between Energy Vault and Pacific Gas and Electric (PG&E) launched a resiliency center in Calistoga, California that combines lithium‑ion batteries with hydrogen fuel cells, delivering 293 MWh of storage—enough to power 1,600 customers for at least 48 hours during outages. Energy Vault’s VaultOS software orchestrates switching between battery and hydrogen generation, and the platform is designed for replication across PG&E’s service area.

Why Founders Should Care: The project illustrates how microgrids are evolving beyond batteries to include hydrogen for long‑duration storage. Startups can develop control software, financing models or modular fuel cell systems for utilities aiming to provide 2–4 days of backup power in wildfire-prone areas. The demonstration also points to future opportunities for hybrid storage solutions that combine different technologies.

🔨Headline: St. Thomas University microgrid research center gets large generators as market growth accelerates

What Happened: Caterpillar delivered three 500‑kW generators to the University of St. Thomas’s Center for Microgrid Research (Minnesota), which is building an AI‑ready microgrid through a $5.4 million state grant. The campus microgrid is partnering with EV charging firm Bright Green to test AI‑driven energy management.

Why Founders Should Care: Founders can leverage academic partnerships to test AI‑based microgrid controls and EV charging integration. The report’s forecast of rapid market growth signals strong future demand for software, hardware, financing and services in the microgrid sector.

🔨Headline: Data centers drive surging power demand for public utilities

What Happened: CEOs of public power utilities told Reuters that requests from data‑center operators now exceed the total electricity consumption of their existing customer base. For example, Oklahoma’s Grand River Dam Authority is fielding 2 GW of data‑center demand—equal to its entire system capacity—and Washington’s Chelan PUD has 1.4 GW of requests on a 200‑MW system. Utilities are exploring how to finance new generation while managing risks of over‑building and stranded assets.

Why Founders Should Care: DER and microgrid entrepreneurs can position themselves as solutions to meet hyperscaler needs, offering modular generation, load management software and flexible power purchase agreements. Public utilities’ financing constraints (e.g., short term contracts) suggest there is room for innovative contracting or public-private partnerships.

🔨Headline: Wildfires & storms dampen solar output in the western U.S., while the East sees a solar boost

What Happened: Solar irradiance across North America varied dramatically in late September: high pressure systems delivered irradiance up to 30% above normal in the eastern US and Canada, while wildfires and storms cut irradiance by 10–20% below normal in western states such as California and Oregon.

Why Founders Should Care: The spatial variability highlights the need for real‑time forecasting and diversified project portfolios. Developers and grid operators should invest in advanced meteorological forecasting and allocate storage or backup resources to mitigate wildfire‑related variability. Founders in forecasting software, remote sensing and climate‑resilient project design can derive opportunities.

🔨Headline: Arizona governor signs executive order streamlining clean energy permitting

What Happened: Arizona Governor Katie Hobbs issued an executive order directing state agencies to expedite the permitting process for renewable projects and to integrate community benefits agreements, aiming to reduce delays and support large‑scale solar and wind.

Why Founders Should Care: Startups planning utility-scale projects in Arizona can capitalize on the new streamlined process and collaborate with local communities through benefits agreements.

🔨Headline: Nevada regulators shift rooftop‑solar compensation to 15‑minute netting and add demand charges

What Happened: The Nevada Public Utilities Commission approved a move from monthly net metering to 15‑minute netting for solar owners and added mandatory demand charges. Solar advocates say the change could reduce compensation for rooftop systems; regulators argue it aligns customer credits with real time grid costs.

Why Founders Should Care: The new rules may affect the profitability of residential and commercial rooftop projects and encourage adoption of batteries or energy management systems that can optimize consumption in 15‑minute intervals. Entrepreneurs can develop products to track and shape loads to minimize demand charges.

🔨Headline: California legislature passes bill to create regional Western grid and awaits solar tax exemption

What Happened: California lawmakers approved a bill to join a regional power market, allowing the state to sell renewable power to other Western states. Another bill would remove state taxes on federal IRA rebates for solar systems; the governor’s signature is pending.

Why Founders Should Care: A regional grid could increase demand for California built renewable projects and open cross border power trading. The tax‑exemption bill would make federal solar subsidies more valuable, encouraging residential and commercial installations.

🔨Headline: California cities enact heat‑pump ordinances requiring replacement of AC units with heat pumps

What Happened: Several California cities—including Moreno Valley, Menlo Park, Sunnyvale, Ojai and Oakland—passed laws requiring homeowners to install heat pumps rather than traditional air conditioners when units are replaced. Additional cities (Santa Cruz, Mountain View, Glendale, Encinitas, Palo Alto and Campbell) are considering similar legislation. The state estimates that heat‑pump laws could save households $5 billion in energy costs and reduce pollution by 4 million metric tons over three years

Why Founders Should Care: Mandatory heat pump replacements create a large market for HVAC contractors, manufacturers and financing providers. Entrepreneurs can provide installation services, develop heat pump leasing models or design integrated HVAC + water heating systems.

🔨Headline: X‑Energy, Amazon and Korean utilities form $50 billion advanced‑reactor partnership

What Happened: Advanced nuclear developer X‑Energy formed a strategic partnership with Amazon, Korea Hydro & Nuclear Power and Doosan Enerbility to accelerate deployment of its Xe‑100 small modular reactors (SMRs). The partners committed up to $50 billion and plan initial projects at Dow’s Texas site and at Energy Northwest’s Richland facility in Washington state, where Amazon plans to purchase power. The Nuclear Regulatory Commission is reviewing X‑Energy’s construction permit.

Why Founders Should Care: Startups can target supply chain segments such as advanced fuel production, component manufacturing and nuclear qualified AI controls.

🔨Headline: ERCOT launches DER visibility platform pilot with GE Vernova

What Happened: ERCOT selected GE Vernova’s GridOS DERMS for a proof of concept “ERCOT Distribution Awareness Platform,” aiming to ingest behind the meter DER telemetry and program data to inform operations and planning.

Why Founders Should Care: Texas is formalizing a data pipe between DERs and the ISO. If you build DER, VPP, telemetry, or grid-aware software, this is a near term path to integrate and prove value in the largest U.S. growth market.

🔨Headline: Duke Energy’s new Carolinas plan leans into nuclear, more gas, more storage

What Happened: Duke filed its 2025 Carolinas Resource Plan, evaluating large reactors and SMRs for a 2037 in-service date, extending some coal units, doubling battery storage to 5.6 GW by 2034, maintaining ~4 GW solar, and adding gas.

Why Founders Should Care: Procurement will skew to firm, dispatchable capacity and storage—while utility solar persists. Expect opportunity in nuclear supply chain, battery EPC/O&M, gas peaking flexibility services, and software that co-optimizes mixed fleets.

🔨Headline: Public power utilities warn of data center risk without contract reforms

What Happened: At the Large Public Power Council meeting, public power executives said data center load often equals or exceeds current systems but muni/coop financing rules hinder long-term contracts needed to protect ratepayers.

Why Founders Should Care: There’s a contracting/financing gap for muni/coop served data centers. Founders offering structured PPAs, credit wraps, or flexible capacity products can help projects pencil—and win procurement.

🔨Headline: Seattle City Light taps ICCT research for long-term fleet-charging strategy

What Happened: The International Council on Clean Transportation released a research brief to guide Seattle City Light’s long-term charging infrastructure strategy for medium/heavy duty fleets (site readiness, energization timelines, private-capital mobilization).

Why Founders Should Care: Near-term opportunities for depot developers, DER/VPP providers, and grid services software around port/trucking corridors as SCL formalizes a market signal for private charging investment.

🔨Headline: LADWP launches free rooftop solar + battery program for low-income customers

What Happened: Los Angeles rolled out a program covering 100% of solar and storage costs for qualifying households and multifamily buildings.

Why Founders Should Care: Immediate pipeline for residential installers, aggregators, and financing partners—also a feeder for VPP enrollment within the LADWP territory.

🔨Headline: 25 companies form the US Energy Storage Coalition

What Happened: A new industry coalition launched with backers including Tesla, LG Energy Solution Vertech, RWE and Enel to advocate for storage deployment.

Why Founders Should Care: A new industry coalition launched with backers including Tesla, LG Energy Solution Vertech, RWE and Enel to advocate for storage deployment.

📌 RFP Bulletin

DOE AI Data‑Center & Energy Project RFP – Oak Ridge Reservation

• 📅 Key Dates: Proposals Due: Dec 1, 2025, Industry Day (mandatory pre‑bid session): Oct 15, 2025

• 🎯 Focus Areas: Development of an AI data center complex paired with new or expanded power generation and storage. Proposals must include construction, operation and interconnection of power generation/storage and provide long‑term leasing and energy arrangements at the Oak Ridge Reservation.

• 🗺️ Region: Oak Ridge Reservation, Tennessee.

• 🔗 RFP Link: https://sam.gov/workspace/contract/opp/18ed3c174129430a8a32fe9157553f7f/view

• 🗒️ Our Notes: Offers long‑term lease (30 years) for the chosen site; proposals must address energy infrastructure and grid interconnection.

DOE AI Data‑Center & Energy Project RFP – Savannah River Site

• 📅 Key Dates: Proposals Due: Dec 5, 2025

• 🎯 Focus Areas: Construction and operation of AI-focused data centers and associated clean‑energy generation or storage at the Savannah River Site. Projects must interconnect to local transmission systems and provide reliable electricity.

• 🗺️ Region: Savannah River Site, South Carolina.

• 🔗 RFP Link: https://sam.gov/workspace/contract/opp/fd8e45d5e5874cfab3a32dc81d0a4ef1/view

• 🗒️ Our Notes: Bidders can propose nuclear, renewable, or hybrid generation assets to power the data center.

Southern California Public Power Authority (SCPPA) – Renewable Energy & Energy‑Storage Solutions RFP (Rolling)

• 📅 Key Dates: Final Response Deadline: Dec 31, 2025 (submissions accepted any time before the deadline)

• 🎯 Focus Areas: Renewable energy projects (wind, solar, geothermal) and energy‑storage solutions (batteries, pumped storage etc.) that can deliver power to SCPPA member agencies. Proposals may include PPAs, ownership offers or lease structures.

• 🗺️ Region: Southern California but open to projects across the western U.S. that can deliver into SCPPA’s balancing authorities.

• 🔗 RFP Link: https://scppa.org/wp-content/uploads/2025/08/Q3-Q4-2025-Renewables-Energy-Resources-and-Energy-Storage-Solutions.pdf

• 🗒️ Our Notes: SCPPA is particularly interested in long‑term contracts or asset ownership opportunities; projects must meet California RPS and emissions requirements.

NorthWestern Energy All‑Source Capacity RFP (South Dakota)

• 📅 Key Dates: Questions Due: Nov 3, 2025, Proposals Due: Nov 12, 2025, Bidder Presentations: Jan 5 – 9, 2026 (anticipated)

• 🎯 Focus Areas: All‑source resource additions to deliver 1,200 MW of firm capacity by 2029‑2030. Accepts proposals for renewable generation, battery or pumped‑hydro storage, thermal generation or hybrid resources.

• 🗺️ Region: South Dakota and adjacent markets (MISO)

• 🔗 RFP Link: https://www.northwesternenergy.com/docs/default-source/default-document-library/about-us/regulatory/2022-south-dakota-irp.pdf

• 🗒️ Our Notes: Projects must deliver at least 25 MW and begin commercial operation no later than June 1 2029 for the 2029 capacity need and June 1 2030 for the 2030 need.

ACORE Accelerate – 2026 Cohort

• 📅 Key Dates: Applications Close: Nov 5, 2025

• 🎯 Focus Areas: Supports emerging small and mid‑sized companies led by women and people of color in the U.S. renewable energy and energy‑storage sector. Provides a two‑year ACORE membership, mentorship and access to ACORE events.

• 🗺️ Region: Participants must be U.S.‑based and have an energy‑sector product or service.

• 🔗 RFP Link: https://acore.org/initiatives/accelerate/#:~:text=Apply%20for%20the%202026%20Cohort

LowCarbon.Earth Accelerator (2025 Cohort)

• 📅 Key Dates: Application Deadline: Nov 30, 2025

• 🎯 Focus Areas: Climate‑tech innovations addressing the circular economy, climate data and digital solutions, sustainable agriculture, clean energy and storage, water security and plastic recycling.

• 🗺️ Region: Asia‑Pacific (Virtual)

• 🔗 RFP Link: https://lowcarbon.earth/

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