Everything’s Bigger in Texas, Including Virtual Power Plants
NRG Energy, a power generator and retail electricity provider, has partnered with Renew Home, a residential virtual power plant (VPP) operator, to create a 1-GW artificial intelligence-powered VPP in Texas.
The companies plan to distribute and install hundreds of thousands of VPP-enabled Vivint and Nest smart thermostats free of charge to eligible customers over the next decade with the dual goals of bolstering the resilience of the Texas power grid and reducing household energy costs.
“As rapid population growth and weather events create new challenges for meeting demand in ERCOT, VPPs can deliver a reliable, flexible and dispatchable energy resource,” Ben Brown, CEO of Renew Home, said in a statement.
VPPs use an intelligent control system and bidirectional technology to aggregate energy from networked resources located at multiple sites, such as rooftop solar systems, batteries, electric vehicles, smart thermostats and other distributed energy resources.
“This marks a pivotal step forward in our efforts to deliver more value and an enhanced experience to customers while empowering them with our virtual power plant capabilities,” said Rasesh Patel, president of NRG Consumer.
The companies plan to roll out their VPP program to Texas customers in the spring.
Home energy storage batteries and electric vehicles are expected to eventually be included in the VPP, creating more opportunities for customers to increase energy savings.
NRG Energy moves to the Google Cloud
The VPP will be powered by Google Cloud technology and to ensure it’s maximizing the VPP’s impact, NRG Energy has initiated a multi-year technology transformation with Google Cloud.
The utility will leverage Google Cloud’s data, analytics and AI technology to improve its forecasting around weather and wind and solar generation output, as well as establish better predictive pricing models.
"As we move toward a more sustainable future and face increasing energy demands, Google Cloud recognizes the importance of partnering with innovators like NRG and Renew Home to help transform the consumer energy experience with AI and the best of Google Cloud,” said Michael Clark, President, North America, Google Cloud. "Our collaboration will help Texas meet its growing energy demands, and also empower consumers to get more from their energy, smart home, and essential home services in the future.”
Big plans for VPPs
“By partnering with industry leaders like Renew Home and Google Cloud, we are set to deliver cutting-edge, AI-driven solutions that will bolster grid resilience and contribute to a more sustainable future,” Patel said”
Renew Home was created in 2023 as a result of the merger of Google Nest’s Renew and OhmConnect, along with a $100 million investment from majority owner Sidewalk Infrastructure Partners (SIP).
While there are several partnerships across the country building VPPs, including examples elsewhere in Texas and in Utah, Renew Home claims to be the largest residential VPP in North America.
The company plans to manage energy use in millions of homes across the country by controlling more than a dozen different types of connected devices, including smart thermostats, heating and cooling systems and water heaters.
As for the Texas VPP, Brown said, “This initiative raises the bar for future-proofing our electricity infrastructure and delivering cost savings to customers.”
VPPs are on the agenda for the 2025 Microgrid Knowledge Conference, which will be held in Dallas, April 15-17.
