In this episode, I break down Pacific Gas & Electric’s (PG&E) announcement of a new Virtual Power Plant (VPP) called SHARE (Smart Home Assets for Reliability and Efficiency). I examine why Google is funding the program and what this initiative reveals about grid-edge capacity arbitrage and AI data center growth.

Here are the key points covered in today's analysis:

• The SHARE VPP Structure: PG&E is collaborating with Rewiring America, Carrier, Tesla, Sunrun, Renew Home, Demand Side Analytics, Encoord, and Google. Starting in fall 2026, the program plans to enroll approximately 21,000 flexible energy devices totaling about 12 MW to shift peak demand away from high-stress periods.
• Carrier Heat Pump Subsidies: Single-family home participants in Alameda and Santa Clara counties with central AC are eligible for Carrier battery-enabled heat pumps with a $5,000 discount, with the first 25 households receiving twice that incentive.
• Google's Funding & Capacity Arbitrage: Google is covering all program costs, customer incentives, and heat pump subsidies. This setup serves as a model for capacity arbitrage, where tech companies pay to free up capacity on the grid edge that can subsequently be claimed to connect additional data load sooner.
• The Economics of AI Data Centers: Compute leases for AI data centers operate in a unique economic tier—with Crusoe leasing compute at roughly $1.25 billion per month per gigawatt and BloombergNEF estimating revenue around $1.76 billion per month per gigawatt. This provides strong economic rationale to pay for grid-edge capacity to get online faster.
• Grid-Edge Arbitrage vs. Data Center Flexibility: While data centers are also testing operational flexibility to reduce load during peak hours, neither grid-edge demand response arbitrage nor data center operational flexibility has been fully proven at gigawatt scale yet.

If you find this analysis helpful, please like, subscribe, and leave a comment with your thoughts on how VPPs and data center growth are intersecting in your region.

Support the show

🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

💡 Stay Connected
Subscribe wherever you listen — including Spotify, Apple Podcasts, Amazon Music, and YouTube.

🌎 Learn More
Visit peterkellydetwiler.com
for weekly market insights, in-depth articles, and energy analysis.

In this episode, I break down PJM's recent filing to the Federal Energy Regulatory Commission (FERC) for an Interim Resource Adequacy Service (IRAS)
. As massive new data center loads exert a tremendous pull on grid reliability, power quality, and energy prices, this interim proposal represents a major new regulatory mechanism to manage large electrical loads
.
Here are the key details from the proposal that I analyze in this video:
The Scale of the Problem: Out of 32 gigawatts of forecasted demand growth in PJM between 2024 and 2030, a massive 30 gigawatts of that growth is driven by data centers
.
What is IRAS? PJM’s proposed Interim Resource Adequacy Service focuses specifically on new Large Load customers (primarily data centers) that do not provide their own power supply
.
The Emergency Shedding Protocol: Under IRAS, during periods of high grid stress, PJM would initiate an emergency notification procedure
. This signals utilities to reduce or transfer the electricity demand of these new large loads before calling on standard demand response resources or proceeding to rotating blackouts
.
The "Build, Bring, or Buy" Standard: Large loads that do not bring new capacity or cover their demand through the upcoming Reliability Backstop Procurement will be subject to IRAS
. This matches the White House Ratepayer Protection Pledge to "build, bring, or buy" the generation resources needed to satisfy new energy demands
.
The Large Load Registry: PJM plans to maintain a registry to track large loads and furnish information to state regulators and utilities
. This allows state-level entities to manage retail load reduction and cost allocation while PJM retains the tools needed to handle grid reliability
.
Emergency Demand Reductions: If utilities do not acquire capacity equal to or above the combined peak demand of these new large loads, PJM would direct those specific zones to reduce demand proportionally during emergencies
. Large loads may also waive compensation for cutting demand to protect ratepayers from rising bills
.
The 2029/2030 Capacity Auction Shift: Starting in December with the 2029/2030 base residual capacity auctions, new large loads that arrive without the necessary power supply won't be included as demand when future power needs are calculated
.
The Ratepayer Cost Impact: Over the last four capacity auctions (mid-2025 to mid-2029), PJM's capacity charges totaled over $63 billion
. The Independent Market Monitor calculated that data loads drove up capacity costs by $29.4 billion—accounting for approximately 46% of total capacity payments
. Most of these data loads are currently only projected rather than actually built
. This December's auction results will give us a clear look at how data loads continue to impact ratepayer costs
.
If you find this analysis of grid reliability and energy regulation helpful, please like, subscribe, and leave a comment with your thoughts on how your region is handling data center load growth.

Support the show

🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

💡 Stay Connected
Subscribe wherever you listen — including Spotify, Apple Podcasts, Amazon Music, and YouTube.

🌎 Learn More
Visit peterkellydetwiler.com
for weekly market insights, in-depth articles, and energy analysis.

In this episode, I break down three major developments on the Texas electric grid that are rapidly changing the landscape for large-power interconnections.

Here is what I unpack in today's analysis:

What is "Batch Zero"? I explain ERCOT's new vetting process requiring large load applicants over 75 MW (primarily data centers) to meet strict criteria before they can interconnect. To proceed, applicants must prove site control, show financial capability, submit an initial qualifying study, and pay a fee of $50,000 per megawatt of load.

The 500 GW Queue Reality Check: While ERCOT's interconnection queue recently reached a massive 500 GW, 294 GW was disqualified for failing to provide required details, leaving approximately 205 GW eligible for the Batch Zero study.

Governor Abbott's Mandate & The Regulatory Pause: I detail Texas Governor Greg Abbott’s directive ordering ERCOT and the PUC to audit all prospective data centers for their water and power consumption, alongside any tax benefits received, due to concerns about grid reliability.

ERCOT's "Good Cause Exception" Request: I discuss ERCOT's subsequent request to slow down the Batch Zero timeline while addressing these audit requirements, as well as their ask to continue processing 23 specific large-load projects to hold their place in line.

Market & Political Implications: I look at Bloomberg New Energy Finance’s estimate that this regulatory pause puts 20% of the U.S. data center pipeline at risk. Finally, I touch on how data center regulation is quickly evolving into a bipartisan issue across the country.

If you find this analysis helpful, please like, subscribe, and leave your thoughts in the comments below.

Support the show

🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

💡 Stay Connected
Subscribe wherever you listen — including Spotify, Apple Podcasts, Amazon Music, and YouTube.

🌎 Learn More
Visit peterkellydetwiler.com
for weekly market insights, in-depth articles, and energy analysis.