Google Signs Three-Year, 100 MW Virtual Power Plant Deal in PJM
GOOG•Google has signed a three-year, 100 MW virtual power plant agreement in PJM with Voltus under its Bring Your Own Capacity product. The deal enrolls batteries, smart thermostats and other assets to deliver peak-demand capacity, funding participant payments and reducing the need for new grid generation buildout.
1. Agreement Structure
Google’s three-year agreement with Voltus will aggregate up to 100 MW of distributed energy resources annually into a virtual power plant operating within the PJM interconnection. The structure is demand-side capacity only, meaning Google pays for flexibility during peak grid stress instead of for continuous power supply.
2. Asset Enrollment and Operation
Voltus will enroll batteries, smart thermostats and other flexible devices from local businesses and homes across PJM’s Midwest and Mid-Atlantic regions. During peak demand events, the platform will discharge batteries or adjust thermostats simultaneously to deliver accredited capacity back to the grid.
3. Strategic Impact for Google
This is Google’s first commercial VPP deal under the BYOC framework and extends its demand flexibility strategy, which already integrates 1 GW of demand response capacity in long-term utility contracts. The agreement aims to reduce reliance on new generation or transmission infrastructure and lower overall energy costs.
