Constellation, Irish tech company announce AI-driven collaboration aimed at easing strain on PJM grid

Beyond the cost savings, the technology would  help in  solving  a major problem for grid operators and power generation owners in meeting rising demand for reliable energy at a time when, outside of a handful of peak hours, the grid is far below capacity. Businesses would receive financial incentives for cutting back on electricity use.

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 curtailing  their energy use for 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 cooler  fall or spring days or during nights and weekends, a release stated.

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 only 0.25 percent, the U.S. could absorb 76 gigawatts of additional energy consumption without building a single new power plant.

Reaching 76 gigawatts would require construction of about  127 combined cycle gas plants, more than 21,000 wind turbines or 190 million solar panels.

The average duration of cutbacks would be 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, the release stated.

“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, 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.”

Demand response (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 modeling, tighter energy supplies, rising costs and the expansion of U.S. data centers.

The 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 direct response  resources.

The above AI-powered program will add new DR resources in PJM by offering business customers an  opportunity to cut energy costs and unlock new revenue streams.

GridBeyond’s AI platform provides a digital twin model of a customer’s site that models  scenarios that can  help customers save money by participating in the economic rewards of grid-balancing services.

The collaboration can also help lower customers’ energy costs and relieves pressure on the grid during a 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, company CEO. “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 disruptions to overall operations, according to the release.

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.

GridBeyond, based in Dublin,  has worked with companies in Ireland in reducing electricity costs and has expanded its markets into the U.S. and other nations.

Constellation has been increasing output from its nuclear plants, restarting the nuclear-powered Crane Clean Energy Center (Three Mile Island)  in Pennsylvania and extending the operating licenses of its nuclear fleet. Microsoft will power data centers with the Crane plant's output.

Baltimore-based Constellation, which was spun off from Delmarva Power owner Exelon in 2022, operates the nation's largest fleet of nuclear plants. It is moving forward on gaining  approvals for a $16 billion purchase of Calpine, which operates natural gas-powered power plants in northern Delaware and Dover.

Earlier this year, the Trump Administration ordered a Pennsylvania Constellation natural-gas fired plant near the Delaware border to remain open, citing tight power supplies.