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The California Energy Commission announced $46.14 million in grant funding for distributed energy resources through its Distributed Electricity Backup Assets programme. The funding can support technologies such as batteries, microgrids and load-flexibility systems intended to strengthen grid reliability. Applications are due Jan. 26, 2027.
The California Energy Commission (CEC) has made US$46.14 million available through a grant solicitation for distributed energy resources, including batteries, microgrids and technologies that can shift electricity demand. The funding is part of the state’s Distributed Electricity Backup Assets (DEBA) Programme, which is intended to support grid reliability, including during extreme events when electricity supplies may be strained.
The CEC announced the funding on Oct. 23, according to Energy-Storage.News. The money is being offered through a Grant Funding Opportunity (GFO). The programme covers distributed energy resources that can either add electricity supply or shift load, potentially easing pressure on the grid during periods of high demand or other reliability challenges.
Eligible technology types cited in the report include battery energy storage systems (BESS), microgrids and load-flexibility technologies. The source does not specify how the US$46.14 million will be divided among these technologies, how many awards the solicitation will make, or the maximum grant available to an individual project.
Applicants must submit proposals by Jan. 26, 2027. The CEC scheduled a pre-application workshop for Nov. 5, 2026, to discuss the solicitation. The commission’s website is the source for submission details and deadlines, the report said.
Funding Targets Local Grid Support
The grant round offers public funding for resources that can help respond to grid reliability needs without relying only on large, centralized power plants. Batteries can store electricity for later use, while microgrids and flexible loads can provide other ways to manage supply and demand. The DEBA programme’s stated purpose is to help improve reliability and avoid blackouts during extreme events.
For energy developers and technology providers, the solicitation creates a potential route to fund projects with a reliability role. For California electricity customers, the intended benefit is a more capable grid during periods of stress. Those are programme goals, however; the announcement does not establish that the funding will prevent outages or specify the expected amount of new capacity or reliability benefit.
The size of the award makes the application timetable and eventual project selections relevant to the state’s storage and distributed-energy sectors. Until the CEC identifies recipients and projects, the practical effect of the funding remains unknown.
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DEBA’s Place in California’s Reserve
DEBA is part of California’s Strategic Reliability Reserve, established in 2022. The reserve was created through legislation associated with Governor Gavin Newsom’s Assembly Bill 205, which also introduced a CEC opt-in certification process for certain large battery storage projects exceeding 200 megawatt-hours.
The report describes DEBA as a separate funding route within that broader policy framework: rather than the opt-in certification process, it directs grants toward distributed resources aimed at reliability. The CEC has previously used DEBA to support a project. In 2025, utility-scale developer SB Energy received a US$25 million grant to buy battery storage for a solar-and-storage project in Riverside County, according to Energy-Storage.News.
CEC Commissioner Noemí Gallardo also discussed the commission’s opt-in scheme in an interview with the publication at the US Solar & Storage Finance event in Garden Grove. Gallardo said the commission had approved three projects, representing about two gigawatts, under that scheme. Those figures concern the opt-in process, not the new DEBA grant solicitation.
“The DEBA Programme provides funding for distributed energy resources, including battery energy storage systems, microgrids and load-flexibility technologies that can increase supply or shift load to improve grid reliability and help avoid blackouts during extreme events.”
— California Energy Commission, as described by Energy-Storage.News
Grant Awards and Project Details Pending
The announcement as reported does not identify prospective recipients, selected project locations, award sizes or the amount of storage capacity that the grants may support. It also does not set out a projected timeline for award decisions or construction. Those details will depend on the application and selection process.
The programme’s stated aim is to improve reliability and help avoid blackouts during extreme events, but the report provides no quantified estimate of how much outage risk this particular funding round could reduce. It is also unclear how much of the total will go to batteries compared with microgrids or load-flexibility projects.
The application deadline is reported as Jan. 26, 2027, and the workshop as Nov. 5, 2026. Applicants should confirm current requirements, deadlines and any updates directly with the CEC, as solicitation terms may contain details not included in the published report.
Applications Open Through January 2027
The next listed milestone is the CEC’s Nov. 5, 2026 pre-application workshop, where prospective applicants can hear about the GFO. Proposals are due by Jan. 26, 2027. The commission’s solicitation materials should provide the application instructions and any formal terms.
After the deadline, the CEC will need to review submissions and determine which projects, if any, receive grants. The source report does not give an award announcement date. Future updates are expected to clarify the recipients, project scope, technology mix and expected delivery schedule.
Key Questions
How much funding has California released?
The CEC announced US$46.14 million for grants under the Distributed Electricity Backup Assets Programme.
What kinds of projects can the DEBA programme support?
The report names battery energy storage systems, microgrids and load-flexibility technologies that can add supply or shift demand to support grid reliability.
When are applications due?
Applications are due Jan. 26, 2027. The CEC scheduled a pre-application workshop for Nov. 5, 2026; applicants should check the commission’s current solicitation materials for details.
Have projects been selected for this funding round?
The report does not identify any recipients for the US$46.14 million solicitation. It cites a separate 2025 DEBA grant of US$25 million to SB Energy for a Riverside County solar-and-storage project.
Does the funding guarantee fewer blackouts?
No. The programme is intended to strengthen reliability and help avoid blackouts during extreme events, but the report gives no measured forecast of outage reductions from this funding round.
Source: energy-storage.news
