Generac Holdings, a global leader in designing, manufacturing, and providing energy technology solutions and power products, has been selected to enter into negotiations by the Department of Energy (DOE) to receive a $50 million grant. This grant is part of the DOE's Grid Resilience and Innovation Partnership (GRIP), a $10.5 billion program established under the Bipartisan Infrastructure Law to boost grid flexibility, strengthen power system resilience against extreme weather, and ensure access to affordable, reliable energy for American communities.
In collaboration with the California Water Association (CWA), Generac aims to deploy clean energy solutions across water utilities throughout California. The total investment is expected to reach around $100 million, covering approximately 100 water utility sites, with a focus on Disadvantaged Communities (DACs).
“We’ve been providing reliable backup power to critical infrastructure like water and wastewater utilities in California and nationwide for over 65 years,” said Aaron Jagdfeld, Generac's President and CEO. “We are honored to be chosen by the DOE to expand our efforts, delivering innovative clean, resilient, and efficient power solutions for California’s grid.”
The project will include microgrids using battery energy storage systems, managed by distributed energy resource management systems (DERMS), forming virtual power plants (VPPs) to provide reliable load reduction during periods of grid stress. With at least 55% of sites in DACs, the project will enhance air and water quality, boost reliability, and generate operational savings.
“I am thrilled that Generac’s project has been selected for funding, and I thank the U.S. Department of Energy for supporting innovations that advance California’s clean energy goals,” said David Hochschild, Chair of the California Energy Commission. “This initiative will install battery systems at water utility facilities across the state, improving resilience during local outages and enhancing grid reliability with backup power during extreme events.”
California’s aging grid infrastructure, rising electrification demands, and extreme weather have strained the system. A heatwave in September 2022 underscored the need for sustainable energy solutions, as water utilities had to rely on fossil-fueled generators to maintain backup power during the crisis.
Jennifer Capitolo, Executive Director of CWA, added, “Through our close partnership with Generac, CWA and its members are honored to be beneficiaries of this $50 million DOE GRIP grant. This funding will help our member water utilities implement clean microgrid and advanced storage solutions, improving power resilience for the communities we serve.”
The project is expected to create around 200 union construction jobs and 33 direct jobs, with approximately $27 million in contracts directed toward businesses majority-owned or controlled by underrepresented groups. Additionally, 59% of the project’s benefits will go to DACs, with collaboration from several local unions including the Northern California Laborers, Operating Engineers, Teamsters, and IBEW Local Union.
