New Battery-Enabled Virtual Power Plant Taking Shape in Texas

Battery and virtual power plant (VPP) technology provider sonnen announced more details around its Texas-based residential VPP this week.

The company (whose name is stylized lower-case) will join forces with retail electricity provider Abundance Energy and energy technology company Energywell Technology Licensing on its behind-the-meter, battery-enabled virtual power plants.

The VPP was launched in January in partnership with SOLRITE Energy, a company specializing in financing solar and battery systems. Under the program, SOLRITE is installing solar panels and sonnen batteries with no upfront costs for eligible customers.

The batteries are networked into virtual power plants under a 25-year power purchase agreement. Excess energy is sold to the grid, enhancing grid stability and reliability while generating revenue for sonnen and SOLRITE and covering the cost of the equipment.

VPPs use advanced software and communication technologies to manage, optimize and coordinate the output of distributed energy resources (DERs), like rooftop solar and energy storage systems, electric vehicles, smart thermostats, and smart home devices, such as appliances, televisions and smart lights.

Virtual power plants aggregate tens, hundreds or even thousands of DERs into a single, dispatchable resource that can either reduce load or create supply during times of peak demand, helping the grid to stay in balance.

Participants benefit from lower-than average electricity prices thanks to the solar panels. The backup power provided by the battery also provides resilience during grid disruptions.

“Our VPP solutions enable customers to actively participate in the energy market while maintaining resilience in their homes,” Blake Richetta, chairman and CEO of sonnen, said in a statement.

Electricity provider selected

In this week’s announcement, sonnen revealed that the VPP program will be available to Abundance Energy customers with a sonnenConnect home battery.

Abundance Energy is a Texas-based digital-native retail electricity provider (REP). REPs are companies that buy electricity at wholesale prices and resell it directly to customers at prices the REP controls.

Often referred to as the “last mile” of the electricity supply chain, REPs do not generate electricity, nor are they responsible for the transmission and distribution infrastructure.

With more than 120 REPs in Texas, the market is highly competitive. Residential and commercial customers in deregulated parts of the state can compare rates and plans from REPs to select the best energy provider for their situation.

“Our mission is to empower homeowners with smarter, more sustainable energy solutions,” said Thomas Mandry, CEO of Abundance Energy.

Optimizing market participation

sonnen’s virtual power plant battery control technology will be integrated with Energywell’s Proton platform, enabling continuous management and optimization of the networked batteries based on real-time market price signals, customer usage and solar generation.

The Proton platform also provides advanced forecasting and optimization tools to dynamically balance energy supply and demand, maximizing value for both the grid and the customer.

“The Texas energy landscape is evolving, and this partnership exemplifies the future of distributed energy,” said Michael Fallquist, CEO of Energywell. “By optimizing stored energy, we are reducing reliance on fossil fuels and lowering carbon emissions, building a smarter, cleaner, and more flexible grid.”

“By combining sonnen’s best-in-class battery and virtual power plant technology [and] Energywell’s market expertise through its Proton platform, we are delivering an innovative VPP model that benefits both customers and the Texas grid,” Mandry said.

VPPs on the rise in Texas

In recent years, the Lone Star state’s electric grid has faltered under pressure from extreme weather events like Winter Storm Uri and summer heat waves. To help stabilize the grid, the state has invested heavily in distributed energy resources like wind, solar and energy storage.

In fact, the state has one of the fastest growing solar and energy storage markets in the country, according to ERCOT, the state’s primary grid operator. VPPs are also gaining popularity.

sonnen reports that its VPP will include a customer base equivalent to 60 MWh. Based on projected monthly growth, the company expects it will overtake Tesla as the largest VPP in Texas by the end of 2026.

Tesla Electric customers in Houston and Dallas that have Powerwall storage systems in their homes are currently eligible to participate in Tesla virtual power plants through ERCOT’s Aggregated Distributed Energy Resource (ADER) program.

In March, the Guadalupe Valley Electric Cooperative announced it was launching a VPP pilot project with Tesla Powerwall owners as part of ADER.

In November, NRG Energy and Renew Home also entered the Texas VPP market, announcing plans for a 1-GW AI-powered virtual power plant. The companies will leverage hundreds of thousands of VPP-enabled Vivent and Nest smart thermostats, which will be given free of charge to qualified participants.