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

A new study from Rice’s Kinder Institute reports Houston has been "losing ground" since the oil crash. Photo via Unsplash

A new study from Rice’s Kinder Institute shows that Houston is still feeling the economic effects of the 2014-2016 oil crash, more than a decade later.

Though Houston, nicknamed the Energy Capital of the World, has continued to grow over the time period, the city has still fallen behind other comparable metropolitan areas in earnings and job creation, according to the research. The report is one part of a three-part series that will take a look at regional economic mobility and suggest ideas to expand opportunity.

“When you look at what’s happened in other locations, we’re losing ground,” Flávio Cunha, director of the Center for Economic Mobility at Rice’s Kinder Institute for Urban Research, said in a release. “Our economy is growing, but it’s no longer growing at the rate it used to.”

Global oil prices fell 70 percent between 2014 and 2016, the report said, marking one of the three largest declines since World War II and the longest-lasting downturn since 1986. The report excluded pandemic-related gaps, and it mentions 2017’s Hurricane Harvey as a possible indicator that economic growth stalled after the 2014-2016 oil price crash recovery.

To understand the long-term impact of the crash, researchers compared Houston’s economic performance with 54 metropolitan areas like San Antonio, Pittsburgh and others with less dependence on the energy industry.

Some of the key findings in the report included:

  • Job creation: In 2019, Houston had approximately 240,000 fewer private-sector jobs than similar cities. Employment was 15 percent lower in goods-producing industries and 4 percent lower in the services industries than the control group.
  • Income shifts: Income per resident was 13 percent lower compared to the peer group. Workers who remained employed earned 10 percent less between 2015 and 2019 than in other metros. The 13 percent drop in income equates to roughly $76 billion a year in forgone income, or $10,700 per resident per year in 2025 dollars. The decline was a trend across every age group, education level and sex.
  • Population changes: The rate of people moving to Houston slowed, rather than a surge of people leaving.
  • Hiring changes: Hiring fell sharply for young workers ages 19-24.

Cunha says the most surprising finding was that these trends persisted a decade later. According to the report, by 2024, Houston’s wages and income per resident remained about a fifth and a sixth below those in peer cities, and jobs per resident had continued to lose ground.

“What really surprises me is not that there was this change. It’s that this change has been long-lasting,” he added. “We followed it up to 2024, and we still don’t detect that the economy has recovered from that one shock.”

Read the full report here.

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