DSGS: California’s Award-Winning Virtual Power Plant (VPP) Program

In this webinar, hosted by the Clean Energy States Alliance, guest speakers from the California Energy Commission (CEC) will present their award-winning Demand Side Grid Support (DSGS) program. This virtual power plant (VPP) program offers performance-based compensation to electric customers who provide load reduction and backup generation to support the state’s electric grid during times of high energy demand, reducing the risk of blackouts. Participating households have either battery storage systems or smart devices such as electric vehicle chargers, electric water heaters, electric panels, or HVAC systems. When electricity demand is high, customer batteries deliver power to the grid and smart devices shift when they operate to a time when energy demand is lower. By drawing on customer-sited resources, utilities can defer expensive grid upgrades like building new power plants and grid infrastructure, which reduces energy bills for all California ratepayers.  

DSGS participation grew over 7X in just two years since its launch in 2023 and is considered by industry to be the largest VPP program in the world with over 124,000 enrolled customers across California, including strong participation in low- and moderate-income communities. 

The CEC received a 2026 State Leadership in Clean Energy Award for the DSGS program. According to the judges: “VPP programs are important to the future of the electricity system. California’s DSGS program is ambitious and successful, balancing grid reliability and affordability.”  

Webinar panelists:  

• Aloke Gupta, Deputy Director, RREDI Division, CEC  
• Ashley Emery, Program Manager, Reliability Branch, CEC 
• Payam Narvand, Supervisor, DSGS Program, CEC  
• Brian Vollbrecht, Energy Program Data Analyst, CEC  
• Nate Hausman, Senior Project Director, Clean Energy States Alliance (moderator)    

This webinar is a presentation of the VPP Acceleration Initiative. The Initiative helps states, local governments, communities, and financial institutions deploy and scale VPPs—advancing affordability, strengthening resilience and grid reliability, and supporting decarbonization. This initiative is led by CESA, Clean Energy Group (CEG), and World Resources Institute (WRI).