Are Backup DERs Now Becoming a Part of the Grid’s Backbone?
- Janine Nobleza
- Aug 21
- 2 min read
Updated: 5 days ago
Distributed energy resources (DERs) have long been seen as “backup” — assets that sit idle until an emergency strikes. But two recent milestones suggest that DERs are evolving into something much more significant: a dependable, everyday backbone of the modern grid.
California’s DSGS Program: Scale and Value
California’s Demand Side Grid Support (DSGS) program offers a clear example of how quickly distributed storage is scaling. In 2025, the program enrolled nearly 700 MW of residential batteries — about the size of a gas plant — and projections indicate this figure could climb to 1,300 MW by 2028.
More importantly, these batteries have proven their ability to perform when needed. In a recent test, 100,000 homes delivered 539 MW at peak demand, showing that distributed storage can provide dependable, incremental capacity at scale. Beyond reliability, the economics are compelling: DSGS could unlock up to $206 million in net benefits by 2028, demonstrating that DERs are not just technically feasible but also cost-effective compared to traditional fossil peakers.
Voltus and the Everyday Reliability of VPPs
If DSGS highlights scale and economic value, Voltus shows us the other side of the story: reliability and everyday use. The company reports that its Virtual Power Plant (VPP) assets are now dispatched 365 days a year. Emergency calls surged in 2025, but what’s striking is that VPPs aren’t only called upon during crises. They are increasingly dispatched as part of routine grid balancing.
These dispatches are smarter, more targeted, and more responsive than ever — proving that DERs can function as always-on grid assets rather than last-resort measures. In renewable-heavy grids where variability is the norm, that kind of dependable flexibility is indispensable.
A Turning Point for the Grid
Taken together, these milestones signal a fundamental shift. DERs are no longer just emergency backup power. They are scaling to rival conventional generation, proving their economic value, and demonstrating reliability through daily operations.
In short, DERs are evolving into a critical part of the grid’s backbone — a role that will only deepen as renewables continue to grow and the demand for flexibility rises.
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