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An Innovative Solution for a Modern Grid: VPP

The Virtual Power Plant (VPP) will transform homes and businesses from locations where we consume energy, to smart ecosystems where power is managed, optimized, and sometimes even generated.

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NRG Energy

By Rasesh Patel President of NRG Consumer NRG Energy

As President of NRG Consumer, Rasesh oversees NRG Smart Home and Home Energy, serving ~8 million customers across North America.

Electricity powers nearly every aspect of our lives—right now, it’s fueling the device you’re using to read this article. Yet for many, the concept of electricity generation might seem distant and obscure.

What if power generation is closer to home than you imagine? What if your home could be part of a collective effort to secure a more efficient and reliable electricity grid?

Virtual Power Plants (VPPs) are transforming the way we think about home-side energy solutions. With energy demand rising due to expanding electrification, generative AI, domestic manufacturing, population growth, and intensifying extreme weather—especially here in Texas—VPPs offer a smart path forward.

What is a Virtual Power Plant (VPP)?

A residential VPP is a network of in-home devices—like smart thermostats and home batteries—that work together to address peak power demand. These devices can release stored energy or adjust consumption to ease strain on the grid. VPPs capitalize on a concept called residential flexible load, which is home electricity usage that can be strategically shifted to times of day when supply and demand is equal, or supply exceeds demand.

Delivering a VPP Solution for Customers

NRG is teaming up with Renew Home and Google Cloud to advance residential VPP capabilities. By leveraging NRG's consumer reach and supply management expertise, Renew Home's residential energy management capabilities, and Google's advanced AI technology, the partnership intends to scale a 650-megawatt AI-powered VPP by 2030 and a 1 GW VPP by 2035 – all enabled by Google Cloud.

As part of the program, NRG, with Renew Home, will provide eligible customers with Vivint and Nest smart thermostats, professionally installed at no cost through NRG’s retail electricity providers and plans. These advanced thermostats make subtle, automatic HVAC adjustments shifting energy use to times when electricity is less constrained, less expensive, and cleaner—all while maintaining household comfort. By participating, homeowners can save energy, lower costs, and contribute to a more sustainable Texas energy grid.

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NRG Energy

This innovative program combines smart devices, energy intelligence, and AI to deliver a modern and efficient energy experience. Over time, it will expand to include devices like home batteries and electric vehicles, unlocking even greater energy savings for customers.

VPP program enrollment is set to launch for Texas customers in the spring of 2025.

Future-proofing the Texas Grid

Texans understand the challenges our energy grid has faced in recent years. Strengthening the resilience of our electricity supply requires innovative solutions like VPPs—reliable, flexible, and ready to meet the demands of the future.

This is an exciting moment for NRG and the energy industry as we shape a more sustainable and resilient future together.