As the saying goes, everything's bigger in Texas. That certainly now extends to the Lone Star State's virtual power plants, known as VPPs.
Renew Home and NRG Energy announced plans to build a one gigawatt (GW) virtual plant capable of powering around 200,000 households during peak demand, as Interesting Engineering detailed.
That will make it the nation's biggest of its kind, Canary Media noted. The key to the virtual plant is smart thermostats that leverage AI to proactively optimize energy usage.
Nest and Vivint thermostats automatically preheat and precool ahead of when grid demand peaks. That enables Texans to save energy and pay less in heat waves and cold snaps, per Canary Media. It also reduces energy usage during peak demand, which enhances grid resilience.
To launch the program, Renew Home and NRG will distribute hundreds of thousands of the smart thermostats at no cost with free, professional installation for eligible customers.
"As rapid population growth and weather events create new challenges for meeting demand in ERCOT (Electricity Reliability Council of Texas), VPPs can deliver a reliable, flexible and dispatchable energy resource," said Renew Home CEO Ben Brown in a news release.
Brown is correct to point out that Texas is facing increasing demand on the grid. Fortunately, the state has been a national leader in clean energy production. That has paid major dividends with solar power and batteries teaming up in record-setting fashion to withstand major challenges in 2024.
The demand for air conditioning, in particular, skyrockets during heat events exacerbated by the warming climate. As extreme weather events like heat waves continue to hit Texas, these solutions can continue to bolster grid resilience and keep customers safe from sweltering conditions.
Battery technology is rapidly progressing, and the companies "expect to add devices like batteries and electric vehicles to the VPP, expanding energy savings opportunities for customers," according to the news release.
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In the short term, though, Brown told Canary Media that VPPs led by "smart thermostats are the quickest path to scale to provide immediate value to customers."
VPPs are an innovative solution to use AI to meet major energy challenges that come at a fraction of the cost of dirty energy solutions. Brown said they cost a 10th of a natural gas power plant, and also give customers agency in reducing their energy bills.
Nationally from New England to California, VPPs have made early strides in helping address the growing demand on the grid while saving customers money.
When it comes to this Texas-based partnership, it is materializing quickly.
The smart thermostats are coming soon, with plans to begin getting them into consumers' homes in spring 2025. As far as the lofty goal of one GW of power, the companies are targeting 2035 for the completion of the VPP.
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