Energy Vault’s Calistoga Resiliency Center Gains CPUC Approval for CAISO Market Participation, Marking a New Era in Grid-Scale Resiliency and Clean Energy Infrastructure
Energy Vault Holdings Inc. (NYSE: NRGV), a pioneer in sustainable, grid-scale energy storage solutions, has achieved a significant milestone with its Calistoga Resiliency Center (CRC) receiving formal approval from the California Public Utilities Commission (CPUC) to participate in California’s wholesale electricity markets operated by the California Independent System Operator (CAISO). This landmark regulatory clearance allows the CRC to enter CAISO’s energy and ancillary services markets, unlocking new revenue streams and operational flexibility.
The approval, in tandem with the recent execution of a Large Generator Interconnection Agreement (LGIA), ensures that the Calistoga Resiliency Center is now fully eligible to deliver essential grid services to California’s bulk power system. These steps follow crucial distribution system upgrades and represent the culmination of extensive planning, coordination, and innovation by Energy Vault and its partners. Together, they mark a pivotal step forward in modernizing the electric grid and deploying advanced clean energy technologies at scale.
A Blueprint for Resiliency in Napa Valley
Strategically located in Calistoga, a community in Northern California’s renowned Napa Valley, the CRC is more than just another energy storage installation—it’s a first-of-its-kind hybrid microgrid designed to address the evolving challenges of climate-related disruptions. The region, frequently impacted by wildfires, heat waves, and Public Safety Power Shutoff (PSPS) events, requires robust and reliable backup power solutions. The CRC answers this call by combining cutting-edge lithium-ion battery systems with hydrogen fuel cell technology in a fully integrated, AI-optimized facility.
The facility is engineered to serve a dual purpose. Primarily, it provides critical backup power to the Calistoga community during emergencies, especially during utility-triggered PSPS outages designed to mitigate wildfire risks. When not in emergency use, the CRC can now contribute to broader grid operations, participating in California’s electricity market as a flexible, revenue-generating asset.
Energy Vault’s proprietary energy storage and bidding technologies form the backbone of the CRC. These include H-VAULT™, a scalable, ultra long-duration energy storage platform, and Vault-Bidder™, an AI-driven software platform that enables intelligent asset bidding and dispatch across energy markets. These systems will allow the CRC to not only respond to grid demands in real time but also optimize revenues through strategic participation in services such as energy shifting, frequency regulation, and spinning reserves.
CPUC and CAISO Integration: Unlocking Market Potential
With the CPUC’s approval now secured, and the LGIA in place, the CRC is officially positioned to function as a market participant in CAISO’s dynamic energy marketplace. The removal of regulatory and interconnection hurdles means the CRC can now bid into CAISO’s day-ahead and real-time markets during periods when it is not required for emergency backup. This positions the facility as both a resilience asset for the local community and a dynamic grid resource, offering services to stabilize the broader California grid.
This development significantly enhances the project’s commercial viability. By capitalizing on energy market opportunities, Energy Vault will be able to recover operational costs more efficiently while delivering valuable services that contribute to grid reliability and decarbonization goals. For investors and regulators alike, this demonstrates how advanced microgrids can provide both community-level resilience and macroeconomic value.
Technology at the Core: H-VAULT™ and Vault-Bidder™
Energy Vault’s integrated platform approach sets the CRC apart from traditional microgrids. H-VAULT™, designed to deliver ultra long-duration energy storage capabilities, ensures that stored energy can be deployed across extended periods, making the system ideal for backup scenarios and prolonged grid outages. Meanwhile, Vault-Bidder™ uses real-time analytics and market signals to determine the most profitable and effective way to dispatch energy, either as reserve capacity, frequency support, or peak shaving.
This intelligent asset management platform allows for seamless interaction between physical assets and market conditions, helping to stabilize grid operations while ensuring economic efficiency. Such technological integration is critical for modernizing grid infrastructure and represents a scalable model for other regions facing similar climate and resiliency challenges.
A Vision for Clean, Profitable Resiliency
“The Calistoga Resiliency Center embodies the vision we’ve had since day one: enabling communities to thrive through clean, intelligent, and reliable energy systems,” said Marco Terruzzin, Chief Revenue Officer at Energy Vault. “This milestone not only affirms the performance of our H-VAULT™ and Vault-Bidder™ technologies but sets a precedent for what’s possible in building a grid that is both sustainable and financially robust. As grid operators worldwide face increasing demands for decarbonization and resiliency, CRC stands as a global model—delivering safety, sustainability, and profitability through innovation.”
His statement underscores a key insight: resiliency and profitability are not mutually exclusive. With advanced digital and physical infrastructure in place, projects like the Energy Vault CRC can fulfill critical social and environmental roles while also being economically self-sustaining.
Project Ownership, Financing, and Celebration
The Calistoga Resiliency Center is fully owned and operated by Energy Vault, with utility Pacific Gas and Electric Company (PG&E) serving as the long-term energy services partner. The project has benefited from a comprehensive financing package, including the successful close of $28 million in funding. A major portion of this was facilitated by the sale of the federal Investment Tax Credit (ITC) associated with the project, a strategic move that demonstrates Energy Vault’s ability to structure capital around clean energy incentives.
To celebrate this transformative achievement, a ribbon-cutting ceremony is scheduled for Friday, August 1, at the CRC site in Calistoga. The event will bring together key stakeholders, including local government representatives, project financiers, technology partners, and members of the public, to recognize the culmination of years of effort and innovation.
