NRG Energy has partnered with Renew Home and Google Cloud to create a 1GW virtual power plant (VPP) in Texas.
The partners aim to distribute hundreds of thousands of VPP-enabled smart thermostats by 2035 and create a nearly 1GW artificial intelligence (AI) powered VPP enabled through Google Cloud to improve Texas grid resilience.
“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,” said Rasesh Patel, president of NRG.
Through Google Cloud's technology suite, NRG will integrate predictive analytics to refine weather forecasting, allowing for better anticipation of wind and solar energy outputs. This will allow NRG to optimize production and adjust to fluctuating renewable energy inputs.
Additionally, NRG will develop predictive pricing models to improve energy efficiency. The partners plan to expand potential energy-saving opportunities by adding devices like batteries and electric vehicles to the VPP.
"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.
NRG and Renew Home plan to roll out their VPP program in the spring of 2025.
The Texan grid is experiencing skyrocketing demand driven by data center developments across the state. Last Month, CenterPoint Energy reported a 700 percent increase in data center developers' requests to connect to the Houston area utility. Requests topped out at 8GW, rising 7GW from before the summer months when the requests totaled 1GW.
The new partnership follows NRG’s decision to divest its renewable advisory division to CBRE Group in October. The division brokered more than 5GW of clean power, focusing on community solar, large-scale energy contracts, Virtual Power Purchase Agreements, and other renewable opportunities.
Google Cloud has also signed several deals over 2024. Earlier this month, it partnered with Lumen Technologies to support its AI strategy.
