In the past decade, the electrical grid has evolved more than it did in the previous fifty years. The rise of solar, wind, and battery technologies has diversified power generation. Nonetheless, the grid continues to grapple with similar issues.
Michael Phelan, co-founder and CEO of GridBeyond, explained to TechCrunch, “The grid’s issue is a peak issue. Generally, there’s sufficient power, but during peak hours, there might be shortages.”
These shortages are notably problematic for tech companies and data center developers, who require substantial electricity to train and run AI models.
“If you have enough stored energy in a battery or can reduce industrial load by hundreds of megawatts, you can start establishing hyperscalers,” Phelan said.
GridBeyond has developed hardware and software that integrates various grid components to function as larger virtual power plants. The startup currently manages about 1 gigawatt of solar, batteries, wind, and hydropower. On the demand side, it oversees “several gigawatts” across commercial and industrial sites, Phelan reported.
To grow its holdings, GridBeyond recently secured a €12 million ($13.8 million) equity investment led by Samsung Ventures. Other investors include ABB, Act Venture Capital, Alantra’s Energy Transition Fund, Constellation, EDP, Energy Impact Partners, Enterprise Ireland, Klima, Mirova, and Yokogawa.
The startup has hardware controllers installed in batteries and renewable power facilities, along with large commercial and industrial sites in regions like Australia, Ireland, Japan, the U.K., and the U.S.
Headquartered in Dublin, GridBeyond began on an island, adapting as Ireland incorporated wind power. Phelan noted, “They needed grid balance, making flexible load offerings ideal.”
Grid operators have traditionally asked heavy users to limit power use during extreme conditions, compensating them to reduce peak demand, a cheaper alternative to building new infrastructure. This practice has gained traction with the influx of renewables, enabling customers to cut back usage at night or when wind power wanes.
Recently, batteries have added a new layer. GridBeyond manages several large energy storage systems, like a 200-megawatt battery in California, providing flexible supply to offset renewable dips.
Batteries are advantageous as they respond faster to demand than traditional peaking power plants. This rapid response facilitates power buying and selling through arbitrage.
This also benefits data centers, which do not constantly draw power but peak during AI training, potentially destabilizing the grid. On-site batteries or connection to nearby virtual power plants can mitigate these fluctuations, making energy connections easier.