INTERVIEW: Distributed capacity procurement can transform energy landscape

In an era marked by rapid technological advancements and increasing energy demands, distributed capacity procurement is gaining attention as a potential game-changer in the energy sector. Sparkfund, a company focused on leveraging distributed energy resources, is one of the players in this evolving landscape.

In an interview, Pier LaFarge, co-founder and CEO of Sparkfund, shared insights into the company's approach to DCP. He emphasized the importance of strategically deploying batteries, solar panels, and generators in areas where the grid faces congestion or strain. This strategy aims to enhance grid efficiency and utilization while providing solutions for major consumers, such as data centers and manufacturers.

The placement of DERs is fundamental to the DCP model. By identifying and positioning these resources where they are most needed, Sparkfund assists utilities deploying these assets, ultimately optimizing their energy infrastructure. "Putting distributed energy resources at the right points can save money, including transmission and distribution costs," LaFarge noted. This approach is seen as a way for utilities to address the growing electricity demand driven by industrial and technological expansion.

Collaboration is essential for the success of DCP. Sparkfund engages with utilities, vendors, and developers to create an ecosystem that supports the deployment of DERs. "Utilities excel at larger infrastructure investments but may struggle with smaller-scale resources across their grids," LaFarge remarked. By acting as a facilitator, Sparkfund aims to streamline the procurement and installation of DERs while ensuring compliance and safety.

Sustainability, reliability at issue

DCP also plays a role in promoting sustainability and system-level reliability across the energy grid. By leveraging DERs, Sparkfund contributes to a more reliable power supply, particularly in communities vulnerable to extreme weather. For instance, their program with San Diego Gas and Electric provided backup generators to low-income residents in wildfire-prone areas. "Having backup power was critical for people living in these communities," LaFarge explained. This initiative highlights the potential of DCP to enhance grid resilience.

Moreover, the DCP model aligns with broader sustainability goals by supporting greater utilization of existing renewable energy resources. LaFarge emphasized that DCP allows utilities to expand their grids efficiently, stating, "It's a cost-effective way to grow capacity." With significant investments already made in wind farms and large-scale solar, storage ensures these assets are fully leveraged, capturing excess generation, smoothing intermittency, and placing downward pressure on rising ratepayer costs. By integrating storage with renewables, DCP not only supports a cleaner energy future but also helps utilities deliver more value from prior infrastructure investments.