Constellation and GridBeyond Launch AI-Powered Demand Response Program in PJM to Improve Grid Flexibility and Save Customers Millions
Innovative AI-powered tool helps business customers save money by reducing their energy use during times of peak demand, increasing grid flexibility and lowering consumer costs
Constellation (NASDAQ:CEG), the nation's largest producer of emissions-free, reliable energy and a leading energy supplier to businesses, homes and public sector customers, and GridBeyond, an international leader in Front of the Meter, Behind the Meter, and demand response (DR) grid solutions, are collaborating to use GridBeyond's AI-powered predictive analytics platform to help business customers in PJM cut costs by reducing energy use during peak periods. Beyond the cost savings, DR also helps solve an urgent problem for grid operators and power generation owners: how to meet rising demand for reliable energy at a time when, outside of a handful of peak hours, the grid is vastly under-utilized. At scale, this new offering could help significantly reduce strain on the grid when energy supply is tight, lowering costs for all energy consumers and reducing the need to build new, expensive and unnecessary generation facilities.
A recent study by Duke University confirmed that much of America's growing demand for energy could easily be met if some large energy users curtailed their energy use for just a few hours of the year. That's because the electric grid was designed to serve the maximum electricity demand at any time, such as a sweltering hot July weekday, even though up to a third of that generation sits idle 80 percent of the time, on temperate fall or spring days or during nights and weekends. As a result, the grid is underutilized outside of peak periods. The Duke study confirmed that if large energy users were financially incentivized to cut energy use by just 0.25 percent, the U.S. could absorb 76 gigawatts of additional energy consumption without building a single new power plant. To put that into perspective, reaching 76 gigawatts would require construction of approximately 127 combined cycle gas plants, more than 21,000 wind turbines or 190 million solar panels. The average duration of curtailment would be just 1.7 hours per year, during which a large energy user could reduce or pause their operations, shift workload to other facilities or switch to 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," said 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 biggest challenges, the growing need for always-on power."
DR programs were once a popular and effective tool for price protection and grid stability during peak demand periods, but that changed when U.S. electricity prices dropped, and the financial benefits fell short of what many businesses considered worthwhile. Today DR is getting a second look, thanks to advances in the accuracy of AI data modelling, tighter energy supplies, rising costs and the expansion of U.S. data centers.
Today's announcement comes shortly after PJM, the nation's largest grid operator, released the results of its most recent capacity auction, which attracted nearly 2,700 megawatts of new generation but no increase in DR resources. This new AI-powered program will add new DR resources in PJM by offering business customers an unprecedented opportunity to cut energy costs and unlock new revenue streams, helping market operators maintain system reliability.
GridBeyond's AI platform provides a digital twin model of a customer's site that enables it to virtually model scenarios that can deliver real-time energy optimization and help customers save money by participating in the economic rewards of grid-balancing services. This collaboration can also help lower customers' energy costs and relieves pressure on the grid during the critical few hours per year when electricity use peaks and costs significantly spike.
"GridBeyond has long been committed to helping its customers manage energy consumption," said 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 DR tools, GridBeyond's platform integrates predictive analytics and advanced metering capabilities, allowing customers to use real-time grid data and automated systems to control which of their operations to curtail to maximize DR revenues and cost savings while minimizing disruption to overall operations. GridBeyond also brings the ability to isolate loads at a sub-meter level, which gives customers detailed information about the energy use of each system or piece of equipment in their operations.
Constellation has been working to meet America's growing energy needs by increasing output from its nuclear plants, restarting the Crane Clean Energy Center in Pennsylvania and extending the operating licenses of its nuclear fleet. The GridBeyond collaboration is another part of Constellation's broader strategy to ensure adequate sources of clean energy are available on the grid and provide innovative solutions for its consumers that can be implemented in the short term and have outsized positive impact on the grid in the long term.
About Constellation
Constellation Energy Corporation (NASDAQ:CEG), a Fortune 200 company headquartered in Baltimore, is the nation's largest producer of reliable, emissions-free energy and a leading energy supplier to businesses, homes and public sector customers nationwide, including three-fourths of Fortune 100 companies. With annual output that is nearly 90% carbon-free, our hydro, wind and solar facilities paired with the nation's largest nuclear fleet have the generating capacity to power the equivalent of 16 million homes, providing about 10% of the nation's clean energy. We are committed to investing in innovative technologies to drive the transition to a reliable, sustainable and secure energy future. Follow Constellation on LinkedIn and X.
This product offering is made available through Constellation New Energy, Inc., a subsidiary of Constellation and a leading supplier of energy products and services, including sustainable energy solutions for millions of homes, institutional customers, the public sector, community aggregations and businesses. For more information, visit www.constellation.com.
About GridBeyond
GridBeyond's vision is to deliver a global zero carbon future. By leveraging AI, we innovate and collaborate with our customers to create optimal value from energy generation, demand and storage to deliver a zero-carbon future. By bridging the gap between distributed energy resources and electricity markets, GridBeyond's technology means every connected asset – whether utility-scale renewables generation, battery storage, or industrial load – can be utilized to help maximize opportunities and enhance the grid. By intelligently dispatching flexibility into the right market, at the right time, asset owners and energy consumers unlock new revenues and savings, resilience, and management of price volatility, while supporting the transition to a Net Zero future. For more information, visit www.gridbeyond.com
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Paul Adams
Senior Manager, External Communications, Constellation
[email protected]
667-218-7700
Gabriella Di Salvo,
Global Head of Communications, GridBeyond
E: [email protected]
www.gridbeyond.com