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

Solar generation is expected to reach 78 billion kilowatt-hours in 2026 in the ERCOT grid. Photo via Pexels

Solar power promises to shine even brighter in Texas this year.

A new forecast from the U.S. Energy Information Administration (EIA) indicates that for the first time, annual power generation from utility-scale solar will surpass annual power generation from coal across the territory covered by the Electric Reliability Council of Texas (ERCOT).

Solar generation is expected to reach 78 billion kilowatt-hours in 2026 in the ERCOT grid, compared with 60 billion kilowatt-hours for coal, the EIA forecast says. The ERCOT grid supplies power to about 90 percent of Texas, including the Houston area.

“Utility-scale solar generation has been increasing steadily in ERCOT as solar capacity additions help meet rapid electricity demand growth,” the forecast says.

Although natural gas remains the dominant source of electricity generation in ERCOT, accounting for an average 44 percent of electricity generation from 2021 to 2025, solar’s share of the generation mix rose from four percent to 12 percent. During the same period, coal’s share dropped from 19 percent to 13 percent.

EIA predicts about 40 percent of U.S. solar capacity, or 14 billion kilowatt-hours, added in 2026 will come from Texas.

Although EIA expects annual solar generation to exceed annual coal generation in 2026, solar surpassed coal in ERCOT on a monthly basis for the first time in March 2025, when solar generation totaled 4.33 billion kilowatt-hours and coal’s totaled 4.16 billion kilowatt-hours. Solar generation continued to exceed that of coal until August of that year.

“In 2026, we estimate that solar exceeded coal for the first time in March, and we forecast generation from solar installations in ERCOT will continue to exceed that from coal until December, when coal generation exceeds solar,” says EIA. “We expect solar generation to exceed that of coal for every month in 2027 except January and December.”

For 2027, EIA forecasts annual solar generation of 99 billion kilowatt-hours in the ERCOT grid, compared with 66 billion kilowatt-hours of annual coal generation.

In April, ERCOT projected almost 368 billion kilowatt-hours of demand in ERCOT’s territory by 2032. ERCOT’s all-time peak demand hit 85.5 billion kilowatt-hours in August 2023.

“Texas is experiencing exceptional growth and development, which is reshaping how large load demand is identified, verified, and incorporated into long-term planning,” ERCOT President and CEO Pablo Vegas said. “As a result of a changing landscape, we believe this forecast to be higher than expected … load growth.”

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