At a glance
- Voltus expects the expansion to take three to four years to ramp, and the contract runs through 2040.
- The June program started at 100 MW, so the expansion takes the program to more than ten times that starting capacity.
- For infrastructure investors and allocators, the expansion attaches a 2040-dated contracted revenue stream to demand-response capacity, similar to long-dated offtake agreements.
Google and Voltus expanded their PJM virtual power plant to 1,170 MW, adding 1,070 MW to the June agreement. Voltus expects the expansion to take three to four years to ramp, and the contract runs through 2040.
The June program started at 100 MW, so the expansion takes the program to more than ten times that starting capacity. The virtual power plant pays participating homes and businesses for cutting electricity demand at peak times in PJM.
For infrastructure investors and allocators, the expansion attaches a 2040-dated contracted revenue stream to demand-response capacity, similar to long-dated offtake agreements. The capacity is coordinated load reductions rather than generated power.
Demand response as grid access
The ramp requires Voltus to enroll and retain enough homes and businesses to deliver 1,170 MW of peak-demand reductions before full contract revenue is realized. That means revenue will be back-loaded even though the term is long.
The companies said the expansion frees space on an energy-strapped PJM grid for data centers. The contract gives Voltus a long-dated buyer, but leaves Google exposed to the performance risk of a distributed participant network.
Reported by The Wrap desk from Private Infrastructure Daily coverage. Published . Corrections