Ice Energy, a leader in thermal energy storage and grid-scale solutions, has announced significant milestones for its Southern California Virtual Power Plant (VPP) Thermal Storage Project.
The company celebrated over five years of successful operation of its 25.6 MWh utility-scale program with Southern California Edison (SCE), which serves 15 million customers. This program is currently active at more than 100 customer sites, delivering over 45 GWh of capacity since its inception. Customers have reported savings of up to 20% on utility bills by using power during off-peak hours, thus reducing strain on the grid and enabling greater renewable energy deployment.
Joe Raasch, Ice Energy’s Director of Operations, highlighted the increasing electricity demand during peak cooling periods as a strain on California’s grid. The International Energy Agency (IEA) predicts that by 2050, one-third of peak electricity demand will come from air conditioning, contributing to blackout risks. Raasch emphasized Ice Energy’s role in supporting the grid’s efficiency and renewable energy integration, with a commitment to continue collaborating with SCE on this initiative.
Importantly, thermal storage programs like Ice Bear™ can be implemented quickly without requiring grid interconnection. The dispatchable technology acts as a local resource, aggregating into megawatt-scale VPPs. Ice Bear™ uses water for storage and is made entirely from recyclable materials, boasting over 100% efficiency depending on temperature differences during its tested 20-year lifespan.
Brice Soucy, an Ice Energy Board Member, noted that Ice Bear™ exemplifies climate technology addressing today’s energy transition needs. He underscored the transformational value created for both SCE and its customers and expressed enthusiasm for expanding similar programs across California and beyond.
The California Public Utility Commission (CPUC) supports the deployment of thermal energy storage and recognizes Ice Bear™ capacity as a reduction to Resource Adequacy requirements for utilities. Additionally, Ice Bear™ qualifies for the Standalone Energy Storage Investment Tax Credit under the Inflation Reduction Act, potentially reducing capital costs by over 40% due to its U.S. manufacturing.
Jason Zibarras, Founding Partner of Argo Infrastructure Partners, emphasized the urgent need for thermal energy storage solutions in California and beyond. He expressed optimism about adoption rates for programs that can be delivered to utilities on a performance contract basis without upfront costs, while providing long-term capacity benefits.
