Two energy industry leaders are joining forces to help commercial and industrial (C&I) customers better leverage distributed generation and demand response programs.
Power generation and energy storage solutions provider Generac and CPower Energy, a leading virtual power plant (VPP) platform, announced their collaboration earlier this week.
The companies will work together to deploy distributed generation solutions, including battery energy storage systems, generators and microgrids, across the PJM Interconnection, which serves more than 65 million customers making it North America’s largest grid operator.
Generac will pair its generation and energy storage products with CPower’s wholesale market program access and demand response expertise, enabling customers to participate in capacity and ancillary services markets, as well as energy and on-bill programs.
"By working with CPower and Generac, C&I customers in PJM can more easily turn distributed generation assets into flexible energy assets that add value to the grid," said Glenn Bogarde, chief sales and marketing officer for CPower. "Beyond earning demand response revenue, customers can generate on-bill savings and reduce capacity charges by lowering electricity use when demand peaks."
C&I electricity bills are climbing rapidly in PJM
PJM’s territory covers all or parts of 13 states and the District of Columbia. Increased electricity demand from data centers combined with already tight supply in the region have driven energy prices to record highs in each of the grid operator’s last three capacity auctions.
Capacity charges, which can be up to 25% of a customer’s electricity bill, ensure the grid operator has sufficient generating capacity to ensure system reliability during peak demand.
In PJM, those rates jumped from $28.92 per MW-day in 2023 to $333.44/MW-day anticipated for the 2027/2028 delivery year – up more than 1,100% over four years.
Some industrial customers could see their electricity bills go up 1.5% to 5% in the coming years — potentially increasing operational expenditures by millions of dollars.
With greater demand expected from data centers, AI factories and other large loads, rates could be even higher by the end of the decade.
"Generac's comprehensive C&I product portfolio and competitive lead time and CPower’s market expertise provide customers with a unique opportunity to quickly capitalize on PJM's prices to improve their resiliency and energy savings outcomes," said Erik Wilde, EVP and president, domestic C&I at Generac. "The ability to combine multiple asset types, such as a generator plus a battery, further optimizes economic dispatch and operational resilience."
Expanding options for C&I customers
The collaboration with CPower is the latest move by Generac to expand its C&I business. In 2025, the company acquired both Ageto, a microgrid controller provider, and PowerPlay Battery Energy Storage System, an engineering, procurement and construction firm.
The company said both acquisitions would bolster its ability to provide a complete energy ecosystem to C&I customers.
CPower Energy was acquired last year by independent power producer NRG as part of a roughly $12 billion M&A deal that also included 18 natural gas-fired power plants.
CPower Energy is a presenter, exhibitor and sponsor in the upcoming Microgrid Knowledge Conference in Orlando. CPower’s Russ Newbold, vice president and GM of Distributed Generation Growth, will participate in a May 6 session on “AI-Enabled Microgrids for Mission-Critical Systems: Turning Reliability into Revenue.”
Microgrid Knowledge Conference runs May 4-6 at the Renaissance Seaworld. Registration is still open.
