Google Funds 100-MW Virtual Power Plant in PJM Market
What happened
Google agreed to fund a 100-MW virtual power plant in the PJM Interconnection market. The agreement involves paying residential, commercial, and industrial customers in PJM to participate in a three-year VPP. This contract holds the VPP operator responsible for Google’s capacity obligation.
From utilitydive.com
Why it matters
The funding signals that distributed capacity is emerging as a valuable resource amid tightening power supplies. Industry sources state this agreement allows markets to treat distributed capacity like any other capacity resource. This move occurs as demand for capacity exceeds supply in PJM, even with record-high prices.
Google is building data centers that utilize the power grid managed by PJM Interconnection.
From utilitydive.com
Who's involved
- GoogleFunded the virtual power plant and actively participates in the PJM market.
- PJM InterconnectionOperates the regional grid where the VPP is located and manages electricity pricing.
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The entities involved
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Google
American multinational technology company, a subsidiary of Alphabet Inc.
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PJM Interconnection
US regional transmission organization