Texas gets 1 GW AI-powered virtual power plant, enough to power 200,000 homes

Image: Renovate house

Texas is about to get a big energy boost: a new AI-powered virtual power plant (VPP) that will deliver capacity equivalent to 200,000 homes during peak demand.

NRG Energy collaborates with Renovate house to bring nearly 1 gigawatt (GW) of capacity to the Texas electric grid by 2035, with the goal of making it more resilient while helping residents save on energy costs.

The new VPP will rely on hundreds of thousands of smart thermostats and other connected home devices, using AI technology from Google Cloud. These devices, such as Vivint and Nest smart thermostats, are offered at no charge to eligible customers. By automating HVAC adjustments, they help shift energy use to a time when electricity is cheaper, cleaner and less taxed.

NRG and Renew Home have big plans for the VPP. Beginning in spring 2025, the companies plan to roll out the program across Texas, installing these smart thermostats in homes served by NRG’s electricity providers. Eventually, they plan to add home battery storage and electric vehicles to expand the power plant’s capabilities.

Texas has been experiencing record-breaking energy demand, with peak consumption reaching 85 GW in 2023. As the state’s population grows and extreme weather becomes more common, VPPs like these can play a key role in stabilizing the electric grid. VPPs bundle a wide range of small-scale energy sources, from smart thermostats to home batteries, and use them to balance supply and demand during times of high stress on the electricity grid.

This nearly 1 GW VPP will be one of the largest of its kind in Texas. NRG’s president of consumer operations, Rasesh Patel, calls it a “critical step” for improving the customer experience while making Texas’ energy infrastructure more sustainable and resilient.

In addition to Renew Home, NRG is working with Google Cloud to maximize the effectiveness of the power plant. Google Cloud’s AI and analytics tools help predict weather conditions, predict renewable generation, and optimize energy consumption, all of which will help make energy management smoother for both customers and the grid.

Ben Brown, CEO of Renew Home, said:

NRG’s commitment to creating a more resilient and sustainable energy future while making electricity bills more affordable makes them an ideal partner for co-developing this unique VPP program.

This initiative raises the bar for future-proofing our electricity infrastructure and realizing cost savings for customers.

Read: Chinese solar giant Trina is selling its Texas factory a week after opening

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