Google has expanded its partnership with virtual power plant (VPP) firm Voltus to build a 1GW VPP across the PJM Interconnection region.

Voltus unlocks grid capacity by using flexible capacity from businesses and households, including thermostats, batteries, and other industrial assets. It then colocates the capacity into a Google-funded VPP. The system is designed to act as a decentralized power plant, automatically orchestrating distributed energy resources (DERs) during periods of high demand to reduce grid stress and unlock additional capacity on the electricity grid.

The VPP works by temporarily reducing these assets' energy use during peak demand to support grid reliability, with participating customers receiving direct economic benefits in return.

The deal builds on a 100MW agreement the two companies signed in June, which was then dubbed a Bring Your Own Capacity (BYOC) agreement. The deal is expected to last approximately three years.

Reacting to the news, Ellen Zuckerman, head of Energy Market Development North and South America at Google, said: “Building on our 100MW agreement from earlier this year, our virtual power plant is one of the largest known distributed capacity portfolios deployed by a hyperscaler to date.

“A VPP is a network of businesses and homes that use tools like commercial cooling systems, batteries, and smart thermostats to adjust their energy use. When synchronized and dispatched in response to grid needs, they free up extra capacity. In return, participants can get paid and lower their bills while strengthening the grid.”

Voltus is a distributed energy and VPP platform that operates across the US. It connects DERs to all nine wholesale markets in North America, with more than 7.5GW of DERs in operation. The company launched its BYOC solution in October of last year. The program is designed to accelerate data center development by leveraging existing flexibility on the grid. It achieves this by offering developers an alternative pathway to interconnection, using its VPP platform to deliver market-accredited capacity.

In February, the company inked a deal with Octopus Energy US to deliver BYOC solutions to utilities, grid operators, and data center firms across the country.