ERCOT braces for record-breaking power demand this summer

hot temps, high demand

ERCOT predicts power demand will hit a peak of more than 92.2 gigawatts this summer. Photo via Unsplash

The Electric Reliability Council of Texas, which manages about 90 percent of the state’s power, is waving a warning flag: The ERCOT grid may set a new record for peak demand this summer.

Based on expectations for a hotter summer this year than last year, ERCOT predicts power demand will hit a peak of more than 92.2 gigawatts this summer — enough power for roughly 18.4 million homes.

“Given the potential for extreme heat combined with significant load growth, ERCOT may surpass its current all-time summer peak,” the organization says in its 2026 summertime forecast.

Further taxing the ERCOT grid are power-hungry data centers and cryptocurrency-mining facilities.

Last year’s peak summer demand for ERCOT reached 83.7 megawatts on Aug. 18, and all-time peak demand of 85.5 gigawatts was recorded on Aug. 10, 2023.

Fortunately, ERCOT believes the grid is in good shape to withstand this summer’s heat: It found a 0.09 percent chance of a grid emergency in June and a 0.21 percent chance in July.

More generation of electricity from solar and wind is helping ERCOT meet stepped-up demand prompted by population growth, and the significant power needs of data centers and cryptocurrency-mining facilities.

About 27 million Texas customers depend on power from ERCOT’s grid.

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NRG Energy has partnered with Sunrun to grow its virtual power plant and support the ERCOT grid. Photo via Pexels.

NRG makes latest partnership to grow virtual power plant

VPP partners

Houston-based NRG Energy recently announced a new long-term partnership with San Francisco-based Sunrun that aims to meet Texas’ surging energy demands and accelerate the adoption of home battery storage in Texas. The partnership also aligns with NRG’s goal of developing a 1-gigawatt virtual power plant by connecting thousands of decentralized energy sources by 2035.

Through the partnership, the companies will offer Texas residents home energy solutions that pair Sunrun’s solar-plus-storage systems with optimized rate plans and smart battery programming through Reliant, NRG’s retail electricity provider. As new customers enroll, their stored energy can be aggregated and dispatched to the ERCOT grid, according to a news release.

Additionally, Sunrun and NRG will work to create customer plans that aggregate and dispatch distributed power and provide electricity to Texas’ grid during peak periods.

“Texas is growing fast, and our electricity supply must keep pace,” Brad Bentley, executive vice president and president of NRG Consumer, said in the release. “By teaming up with Sunrun, we’re unlocking a new source of dispatchable, flexible energy while giving customers the opportunity to unlock value from their homes and contribute to a more resilient grid

Participating Reliant customers will be paid for sharing their stored solar energy through the partnership. Sunrun will be compensated for aggregating the stored capacity.

“This partnership demonstrates the scale and strength of Sunrun’s storage and solar distributed power plant assets,” Sunrun CEO Mary Powell added in the release. “We are delivering critical energy infrastructure that gives Texas families affordable, resilient power and builds a reliable, flexible power plant for the grid.”

In December, Reliant also teamed up with San Francisco tech company GoodLeap to bolster residential battery participation and accelerate the growth of NRG’s virtual power plant network in Texas.

In 2024, NRG partnered with California-based Renew Home to distribute hundreds of thousands of VPP-enabled smart thermostats by 2035 to help households manage and lower their energy costs. At the time, the company reported that its 1-gigawatt VPP would be able to provide energy to 200,000 homes during peak demand.

CenterPoint Energy has launched a $65 million capital improvement plan that will focus on building and maintaining a “resilient” electric grid. Photo via centerpointenergy.com

CenterPoint launches $65B capital improvement plan

grid growth

To support rising demand for power, Houston-based utility company CenterPoint Energy has launched a $65 billion, 10-year capital improvement plan.

CenterPoint said that in its four-state service territory — Texas, Indiana, Minnesota and Ohio — the money will go toward building and maintaining a “resilient” electric grid and a safe natural gas system.

In the Houston area, CenterPoint forecasts peak demand for electricity will increase nearly 50 percent, to almost 31 gigawatts, by 2031 and peak demand will climb to almost 42 gigawatts by the middle of the next decade. CenterPoint provides energy to nearly 2.8 million customers in the Houston area.

In addition to the $65 billion capital improvement budget, which is almost 40 percent higher than the 2021 budget, CenterPoint has identified more than $10 billion in investment opportunities that could further improve electric and natural gas service.

“Every investment we make at CenterPoint is in service of our approximately seven million metered customers we have the privilege to serve,” CenterPoint president and CEO Jason Wells said in a news release.

“With our customer-driven yet conservative approach to growth, we continue to see significant potential for even more investment for the benefit of our customers that is not yet reflected in our new plan,” he added.

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Baker Hughes closes $13B acquisition of gas equipment maker Chart Industries

m&a activity

Houston-based energy technology company Baker Hughes has completed its $13.6 billion acquisition of Chart Industries, a provider of equipment and services for liquefying gases like LNG, hydrogen, nitrogen and oxygen.

Baker Hughes says the deal advances its “strategic vision” to be a leader in energy and industrial technology.

Jim Apostolides, who had previously served as chief infrastructure and performance officer at Baker Hughes, leads the Chart business in his new role as senior vice president. Chart President and CEO Jill Evanko left the company in January to become CEO of Duravant, which makes equipment for food processing, packaging and materials handling.

Publicly traded Chart reported $4.3 billion in revenue for fiscal year 2025. Its customers operate in sectors such as gas infrastructure, nuclear, data centers, carbon capture and storage, space, and geothermal energy.

“Chart’s thermal management solutions bring complementary capabilities and aftermarket service offerings that accelerate our portfolio strategy,” Lorenzo Simonelli, chairman and CEO of Baker Hughes, said in a news release. “Together, we will expand the solutions we deliver across a broader range of energy and industrial markets and create greater value for customers and shareholders.”

Chart will operate as a new financial reporting segment within Baker Hughes, reflecting what Baker Hughes says is the “scale and strategic importance of its differentiated capabilities in air and gas handling, thermal management, and lifecycle services.”

Baker Hughes announced the Chart deal last July.

“We know Chart well, having worked alongside them on many critical energy infrastructure projects,” Signorelli said last year. “Their products and services are highly complementary to our offerings and strongly aligned with our intent to deliver distinctive and efficient end-to-end lifecycle solutions for our customers across their most critical applications.”

Chart’s website lists offices in Houston, The Woodlands, and Austin, with corporate headquarters in Ball Ground, Georgia. It’s unclear what will happen to those offices.

KBR appoints C-suite duo to lead forthcoming spinoff

Making Moves

In advance of the spinoff of its Mission Technology Solutions unit, Houston-based KBR has made two C-suite hires for the new business.

Michael LaRouche is coming aboard as president and CEO of the spinoff, currently called SpinCo, on Sept. 26. Nicholas Veasey joined as executive vice president and chief financial officer earlier this month, on July 1.

“Michael and Nick bring a highly complementary combination of operational leadership, financial expertise, and mission-driven experience, and together they will accelerate our impact for stakeholders,” Stuart Bradie, chairman, president and CEO of publicly traded KBR, said in a news release.

LaRouche currently is CEO of Serco North America, a Herndon, Virginia-based government services contractor. Veasey most recently was CFO of MAG Aerospace, a Fairfax, Virginia-based defense contractor.

SpinCo, a government services contractor, will launch with more than $5.3 billion in annual revenue and 20,000 employees. KBR’s total headcount is around 36,000. Branding for SpinCo, including a formal name, will be revealed in July.

“SpinCo is positioned as a top-tier provider of differentiated technology solutions, anchored by deep mission expertise, global scale, and a relentless commitment to delivering for our customers,” LaRouche says.

After the spinoff, the slimmed-down KBR will focus on its Sustainable Technology Solutions business, a provider of energy and industrial technology that generated $2.5 billion in revenue in 2025 and is designed to reduce carbon emissions and support energy transition efforts. Bradie will remain chairman, president and CEO of the business.

Both SpinCo and the new KBR will be public companies. The spinoff is scheduled to be completed in January 2027.

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This article first appeared on InnovationMap.com.

Houston PE firm makes latest nuclear industry acquisition

nuclear deal

Houston-based private equity firm Pelican Energy Partners has acquired California-based Veridiam for an undisclosed amount in an effort to further increase the firm’s focus on the nuclear energy sector.

Veridiam is a strategic manufacturer that specializes in the precision fabrication of components and assemblies made from exotic metals or advanced alloys for the nuclear, aerospace, defense, space and medical fields.

Following the acquisition, Veridiam will continue to operate under its existing name and will led by its current management team, including CEO Brian Joyal.

“Joining the Pelican platform accelerates our strategic trajectory," Joyal said in a news release. "With Pelican's support, we will accelerate the modernization and expansion of our manufacturing capabilities to meet unprecedented demand across the nuclear, aerospace, defense, and medical sectors. This partnership also enables us to expand our portfolio of mission-critical products and engineered solutions while maintaining the uncompromising quality, precision, and reliability standards that have defined Veridiam for more than 60 years."

Since 2011, Pelican has raised over $1 billion in committed capital and has realized over 15 investments. Currently, Pelican is investing from its fourth fund, which aims to support and advance companies that provide critical services and products to the nuclear power industry.

In 2024, Pelican raised a $450 million fund to invest in nuclear energy services and equipment companies.

The Veridiam deal comes after Pelican has completed several nuclear acquisitions. The PE firm acquired New Hampshire-based Environmental Alternatives Inc., which provides nuclear decontamination services, in April; it acquired Georgia-based WSI Welding Solution in December, which services the nuclear sector.

"Veridiam sits at the center of our investment thesis and reflects the kind of deal Pelican does best," Mike Scott, managing partner and founder of Pelican Energy Partners, added in the news release. "With the right capital and operating support, we see a clear opportunity to strengthen the business, invest in its capabilities, and create long-term value for customers and shareholders."

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