Google Funds PG&E Virtual Power Plant Pilot to Tame Rising Electricity Rates
PG&E and Google are launching a new virtual power plant (VPP) pilot program in San Jose, California. The SHARE VPP will integrate 21,000 energy devices, including home batteries and smart thermostats, to unlock additional capacity on the regional electric transmission system.
The program is funded by Google, which will cover all costs, including customer incentives. Google's goal is to optimize the grid and reduce electricity rates. The pilot aims to test whether better grid utilization can help spread future infrastructure costs over more usage.
PG&E has partnered with Tesla, Sunrun, Renew Home, and Demand Side Analytics to develop the program. The companies will integrate their existing energy devices into the VPP, which will provide 12 megawatts of capacity. Eventually, Rewiring America and Carrier will enroll hundreds of HVAC systems in the program.
The pilot is a test case for whether transmission grid relief can be achieved through a mix of existing and new distributed energy resources. If successful, the program could help lower costs for all customers and provide benefits to local communities.