Generac Selected by the U.S. Department of Energy to Receive $50 Million Award to Support Grid Resilience Through Clean Energy Solutions with California’s Water Utilities

The project will invest in approximately 100 sites across California, with a focus on Disadvantaged Communities (DACs)

WAUKESHA, Wis., October 21, 2024 /PRNewswire/ -- Generac Holdings, Inc. (NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, today announced the company has been selected to enter into negotiations by the Department of Energy (DOE) to receive an award for a grant of $50 million as part of the DOE’s Grid Resilience and Innovation Partnership (GRIP). Established by the Bipartisan Infrastructure Law, the Grid Resilience and Innovation Partnerships (GRIP) Program is a $10.5 billion investment to enhance grid flexibility, improve the resilience of the power system against extreme weather, and ensure American communities have access to affordable, reliable, energy when and where they need it.

Generac, in collaboration with the California Water Association (CWA), aims to integrate clean energy solutions with water utilities statewide. The total investment is estimated to be approximately $100 million across about 100 California water utility sites, particularly in Disadvantaged Communities (DACs).

“We’ve been providing reliable backup power solutions to critical infrastructure, such as water and wastewater utilities, in California and across the US for more than 65 years,” said Aaron Jagdfeld, president and CEO at Generac. He added, “We are honored to be selected by the DOE to expand that scope by delivering these innovative solutions of clean, resilient, and efficient power for California and its grid.”

Under the project, microgrids, which will utilize battery energy storage and be managed by distributed energy resource management systems (DERMS), will form virtual power plants (VPPs) capable of delivering reliable load reduction during times of grid stress. Additionally, the project, with at least 55% of sites in DACs, will lead to improved air and water quality, reliability, and operational savings.

"I am thrilled Generac Power Systems project has been selected for funding and thank the U.S. Department of Energy for their ongoing support of innovations that advance California’s clean energy goals," said California Energy Commission Chair David Hochschild. "This effort will install battery systems at water utility facilities across the state, supporting resiliency during local outages and enhancing grid reliability by offering backup power during extreme events."

California’s electric grid is increasingly challenged by aging infrastructure, rising demands from electrification, and the effects of extreme weather. As an example, during a 10-day heat wave in September 2022, the grid was pushed to its limits, and water utilities played a vital role by providing backup power through fossil-fueled generators. This situation underscored the urgent need for more sustainable and resilient energy solutions.

“Made possible through our close partnership with Generac Power Systems, the California Water Association and our members are honored to be beneficiaries of this $50 million grant from the DOE GRIP program. This funding will help our member water utilities leverage clean microgrid and advanced storage solutions to improve local electric power resilience in the communities we serve,” said Jennifer Capitolo, CWA Executive Director.

The project will create an estimated 200 union construction jobs and 33 direct jobs, contract approximately $27 million with businesses majority owned or controlled by underrepresented persons or groups of underrepresented persons, and direct 59% of project benefits to DACs. Some or all of this project will be executed in collaboration with the Northern California Laborers, Northern California Operating Engineers, Operators Local Union, Teamsters Local Union, Laborers Local Union, Carpenters Local Union, Masons Local Union, or the IBEW Local Union.

For more information, visit the following link https://www.energy.gov/sites/default/files/2024-10/Generac_Power_Systems_GRIP2_Fact_Sheet.pdf for a background document on the project.