Google Contracts Voltus for 1,070 MW Virtual Power Plant in PJM

Overview

• Google has agreed with Voltus to assemble a virtual power plant in the PJM regional grid that can provide up to 1,070 megawatts of capacity to the company when needed.
• Voltus will aggregate thousands of small demand reductions and local storage resources, such as smart thermostats and onsite batteries, so they operate like a single controllable power plant.
• Participants will receive financial incentives for reducing or shifting load, but Google and Voltus have not disclosed how much they will pay or the full commercial terms.
• Google says virtual power plants are a near-term way to meet fast-growing electricity needs for AI data centers while it continues to evaluate longer-term generation options.
• The approach could deliver capacity faster and with lower emissions than building new fossil plants, but it depends on high participant enrollment, reliable coordination, and market approval in PJM.