MADERA, Calif. — Valley Children’s Healthcare confirmed this week that its pioneering microgrid power project remains on schedule, even after federal budget cuts eliminated funding for the second phase of the initiative.
The hospital’s renewable energy microgrid — designed to provide clean, resilient power to support critical care operations — is still scheduled to go online in 2026.
Right now, Phase 1 — which includes solar panels, fuel cells and short-duration battery storage — is fully funded and under construction.
“This project is about protecting the health and safety of children, no matter what challenges come our way,” said Valley Children’s Healthcare President and CEO Todd Suntrapak. “While we’re disappointed by the loss of federal support for Phase 2, our timeline hasn’t changed, and our commitment hasn’t wavered.”
The project’s second phase was set to include a long-duration battery storage system capable of powering hospital operations during extended outages. That component was supported by a $30 million grant from the U.S. Department of Energy (DOE), awarded to Faraday Microgrids, as part of a national DOE initiative to fund clean energy resilience projects across the country.
However, the funding was recently rescinded as part of broader federal budget cuts, leaving the long-duration storage system unfunded for now. The California Energy Commission (CEC) approved an additional $4 million grant, with the potential to award up to $28 million, for the Phase 2 project in February 2025.
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“CEC remains supportive of funding a long-duration energy storage project at Valley Children’s Hospital to add resilience and reliability to the critical facility,” said Jonah Steinbuck, director of the Research and Development Division at the California Energy Commission.
Mazzetti is a California-based consulting firm that developed the concept for Valley Children’s microgrid and provided engineering. The team is now helping with implementation.
“Valley Children’s has been a tremendous leader, using their own funds to develop the current microgrid,” said Mazzetti CEO Walt Vernon, who helped write portions of the National Electric Code that opened the door to such systems. “Madera County, like much of the Central Valley, struggles with air quality, and this project will protect the health of the community in so many ways.”
When operational, Valley Children’s microgrid will supply 80% of the hospital’s energy and reduce the campus’ carbon emissions by 50%.
Valley Children’s project will be the largest microgrid in the country attached to a hospital emergency backup system. The microgrid is a cornerstone of Valley Children’s broader sustainability strategy, which includes a commitment to net-zero carbon emissions by 2050 and participation in the DOE’s Better Climate Challenge.
“This project reflects our responsibility to care for children and improve the communities where they live, learn and play,” Suntrapak added. “We’re proud to be leading the way.”
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