PG&E Expands California Microgrid Network with $30 Million Investment

Pacific Gas and Electric Company has committed an additional $30 million to its Microgrid Incentive Program, selecting six new projects to bolster energy reliability. These local clean energy systems, designed to operate independently during grid outages, now represent a total investment of $73 million across Northern and Central California.

Money Talk·September 17, 2026·reads: 1,098

PG&E Expands California Microgrid Network with $30 Million Investment

The latest funding round supports a diverse range of infrastructure, including solar-plus-storage arrays and biomass facilities intended to shield critical services like hospitals, fire stations, and schools from power disruptions. This expansion builds upon $43 million previously allocated in 2025, moving the total portfolio to 15 projects spanning rural, coastal, and high wildfire-risk regions.

Among the most notable developments is the advancement of the Firemain Linked Auxiliary Supply/Hydraulic Energy Storage (FLASHES) initiative in Lake County. This project utilizes a unique pumped-hydro design, where solar energy powers water movement to elevated storage tanks. When electricity demand peaks or the grid fails, the water is released through turbines to generate power, simultaneously providing a secondary water source for firefighting efforts.

Separately, the second round of awards includes a significant project in San Mateo County led by WestLight Energy. The Pescadero microgrid will integrate a 1.5-megawatt solar array and a 2-megawatt battery system to support over 200 customers, ensuring at least 24 hours of standalone operation for the remote coastal community. As these projects shift from conceptual design to early-stage development, they aim to serve as a scalable model for utility-community collaboration in long-duration energy resilience.