Constellation, the country’s largest producer of dependable, emissions-free energy and a top energy supplier to homes, businesses, and public sector customers, and GridBeyond, a global leader in demand response (DR), front-of-the-meter, and behind-the-meter grid solutions, are working together to use GridBeyond’s AI-powered predictive analytics platform to help business customers in PJM save money by using less energy during peak hours. In addition to the financial benefits, DR assists grid operators and owners of power generation in resolving a pressing issue: how to supply the growing demand for dependable energy during a period when the grid is significantly underutilized outside of a few peak hours. When scaled up, this novel product could assist in easing the burden on the grid during periods of limited energy supply, lowering costs for all energy users and avoiding the need to construct additional, needless, and costly generating facilities.
According to a recent Duke University study, if certain major energy consumers reduced their usage for a few hours per year, a considerable portion of America’s rising energy demand could be readily satisfied. This is because, although up to a third of that generation is idle 80 percent of the time, on mild fall or spring days, or on nights and weekends, the electric grid was built to meet the highest demand for electricity at any given moment, such as on a sweltering July weekday. Outside of peak hours, the grid is therefore underutilized.
According to the Duke study, the United States could absorb an additional 76 gigawatts of energy use without constructing a single new power plant if big energy consumers were given financial incentives to reduce their energy use by just 0.25 percent. To put that into context, building 190 million solar panels, over 21,000 wind turbines, or over 127 combined cycle gas plants would be needed to reach 76 gigawatts. Curtailment would last an average of only 1.7 hours annually, during which time a major energy user might halt or scale back operations, transfer duty to other facilities, or use backup generators.
“This demand response platform is a better, cheaper, and faster way to meet America’s growing energy needs, help win the AI race, and lower costs for consumers,” stated Joe Dominguez, president and CEO of Constellation. “As the energy provider for 75 percent of America’s Fortune 100 companies, Constellation is well positioned to explore and eventually scale up this new and improved DR program. It’s just one of the ways we’re putting AI to work to solve one of the nation’s greatest challenges, the growing need for always-on power.”
When electricity prices in the United States declined, DR programs—once a well-liked and successful instrument for price protection and system stability during periods of peak demand—became less profitable than many businesses thought they were worth. Due to factors like growing costs, tighter energy supplies, the expansion of U.S. data centers, and improvements in the accuracy of AI data modeling, DR is currently receiving another look.
The announcement today follows the results of the most recent capacity auction held by PJM, the country’s largest grid operator, which brought in around 2,700 megawatts of new generation but did not enhance DR resources. This new AI-powered program will help corporate clients save on energy costs and create new ways to earn money, while also increasing PJM’s DR resources and helping market operators keep the system reliable.
To digitally model scenarios that can provide real-time energy optimization and assist clients in saving money by taking advantage of the financial benefits of grid-balancing services, GridBeyond’s AI platform offers a digital twin model of a customer’s website. This partnership can help clients save money on their energy bills while also reducing grid strain during the crucial few hours of the year when electricity demand peaks and expenses sharply increase.
“GridBeyond has long been committed to helping its customers manage energy consumption,” stated Michael Phelan, Chief Executive Officer of GridBeyond. “We are delighted about our collaboration with Constellation that will bring innovative solutions that deliver both cost savings and sustainability benefits that empower businesses to take control of their energy usage.”
Unlike traditional demand response tools, GridBeyond’s platform uses advanced meters and predictive analytics, allowing users to choose which operations to reduce in order to increase demand response earnings and save costs while keeping disruptions to a minimum. GridBeyond achieves this goal by utilizing real-time grid data and automated systems. Additionally, GridBeyond offers sub-meter-level load isolation, providing clients with comprehensive data on how much energy each system or piece of equipment uses in their operations.
By extending the operating licenses of its nuclear fleet, restarting the Crane Clean Energy Center in Pennsylvania, and increasing output from its nuclear facilities, Constellation has been attempting to fulfill America’s expanding energy needs. The GridBeyond partnership is another component of Constellation’s larger plan to ensure sufficient clean energy sources on the grid and to provide its customers with creative solutions that can be implemented immediately and have a significant positive long-term impact on the grid.
