dream team

NRG Energy partners to launch Texas' largest AI-powered virtual power plant

NRG and Renew Home expect the virtual power plant program to arrive for Texas customers in spring of 2025. Photo via Getty Images

NRG Energy is partnering with a virtual power plant company to distribute hundreds of thousands of VPP-enabled smart thermostats by 2035 in an overall effort to improve the Texas grid's resiliency and help households manage and lower their energy costs.

Renew Home will create a nearly 1 gigawatt AI-powered VPP, which will be enabled by Google Cloud technology and be the largest AI-enabled VPP in Texas. NRG and Renew Home expect the VPP program to arrive for Texas customers in spring of 2025.

A 1 gigawatt VPP can deliver a capacity that is equivalent to 200,000 homes during peak demand times. NRG and Renew Home plan to offer Vivint and Nest smart thermostats, which will include professional installation at no cost to eligible customers as part of the goal to build the VPP.

The advanced thermostats can make automatic HVAC adjustments that can help customers shift their energy use to times when electricity is less expensive, and cleaner. The program will combine smart devices, energy intelligence, and AI. The companies expect to add devices like batteries and electric vehicles to the VPP.

“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,” Rasesh Patel, president of NRG Consumer, says in a news release. “We are excited about the transformative impact this collaboration will have on our customers and the broader energy landscape.”

NRG will also be utilizing the multi-year technology transformation with Google Cloud. NRG will be able to better predict weather conditions, forecast wind and solar generation output, and create predictive pricing models through the use of Google Cloud's data, analytics, and AI technology.

"As we move toward a more sustainable future and face increasing energy demands, 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,” Michael Clark, president - North America at Google Cloud, adds. "Our collaboration will help Texas meet its growing energy demands, and also empower consumers to get more from their energy, smart home, and essential home services in the future.”

Texas reached an unprecedented demand surge of 85 gigawatts in 2023.

“As rapid population growth and weather events create new challenges for meeting demand in ERCOT, VPPs can deliver a reliable, flexible and dispatchable energy resource,” Renew Home CEO Ben Brown continues. “NRG’s commitment to creating a more resilient and sustainable energy future while also 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 delivering cost savings to customers.”

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A View From HETI

Sage Geosystems has selected a site for its next major geothermal facility. Photo via sagegeosystems.com

Sage Geosystems, a Houston-based developer of geothermal power systems, has chosen a site in Nevada for its commercial-scale Project Vector facility.

The company’s two-well enhanced geothermal system (EGS) will deliver around-the-clock geothermal heat to Ormat Technologies’ Blue Mountain geothermal power plant in Winnemucca, Nevada.

The startup expects to begin drilling the first well later this year, with the first electricity to be generated in 2027 and full-scale production to start in 2028.

In the Nevada system, fluid will circulate through an engineered subsurface reservoir, absorb heat from the surrounding rock and return heat to the surface. The heat will be delivered to the Blue Mountain plant for conversion into electricity.

Project Vector builds on the performance of Sage’s SMECI facility in South Texas. That facility’s results, combined with Sage’s digital twin platform, will be used to shape to the design and development of Project Vector.

Project Vector supports Sage’s growing commercial pipeline, including a 150-megawatt geothermal power agreement with Meta Platforms, the parent company of Facebook and Instagram.

“Blue Mountain is an ideal location for Sage to take the next step in continuing to commercialize our proprietary EGS approach,” Jason Peart, chief operating officer at Sage, said in a release. “By delivering geothermal heat into an existing power plant, Project Vector can demonstrate the model for bringing firm, 24/7 geothermal power to market at scale.”

Project Vector extends Sage’s relationship with Ormat.

In August 2025, Sage and Ormat agreed to accelerate commercialization of Sage’s geothermal technology at an Ormat power plant. This January, Ormat co-led Sage’s $97 million Series B funding round.

Sage, founded in 2020, has raised about $159 million across three funding rounds.

As the startup ramps up its ESG platform, Sage is targeting data centers as customers, among other large-scale users of electricity.

“The energy needs are huge, and they need it now,” CEO Cindy Taff said on Data Center Frontiers’ podcast. “They can’t depend on the grid anymore.”

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