Google and Voltus Turn 100 Megawatts of Building Flexibility Into PJM’s Cheapest Capacity
A first-of-its-kind agreement pays homes and businesses for the load they already control, and it tells owners exactly where the next revenue line sits.
By Keith Reynolds | Publisher & Editor, ChargedUp!
Google will fund 100 MW of market-accredited capacity in PJM by aggregating existing batteries, thermostats, EV charging, and controllable equipment through Voltus. Homes and businesses get paid for flexibility; developers get a faster path to power than waiting years in the interconnection queue. For owners, controllable load becomes a new income line—resilience, demand-charge management, and capacity payments stack.
A few years ago, the answer to rising peak demand was steel in the ground: bigger substations, long lead times, and capital that served a handful of hours. This deal points to a different playbook: orchestrate what’s already installed. The memorable line here is simple—the cheapest new megawatt is the flexible one you already own.
Key takeaways
Inventory controllable load now—chillers, water heating, EV charging, and storage are the raw material of a capacity payment.
Underwrite batteries as dual‑use—resilience, demand‑charge management, and capacity revenue grow together.
Track aggregator and utility options—the ability to answer a grid signal is now a measurable difference in cash flow and leasing speed.What exactly happened?
On June 2, 2026, Google agreed to source 100 megawatts (MW) of capacity over three years from distributed energy resources (DERs) aggregated by Voltus into a virtual power plant (VPP) participating in PJM Interconnection markets. The Bring Your Own Capacity agreement pays the homes and businesses that provide the controllable load and gives large new loads a way to meet capacity needs without waiting on a substation upgrade.
Why is this capacity cheaper than building new infrastructure? What did Google actually buy?
Because it taps assets already in the field. Instead of financing new peak-only equipment, Voltus dispatches existing batteries and trims flexible loads in tight grid hours. A Brattle Group analysis cited with the announcement estimates better use of existing resources via VPPs could save U.S. consumers more than $100 billion over the next decade.
What did Google actually buy? The battery on the roof becomes an income line
A contract for accredited capacity assembled from thousands of devices across PJM—batteries, smart thermostats, EV charging, and other controllable loads—that can respond on command. The structure matters: Voltus launched this capacity product in October 2025 and extended distribution via Octopus Energy US in February 2026, positioning it as a repeatable path for hyperscale buyers and developers who need power access faster than the interconnection queue can deliver.
The battery on the roof becomes an income line
View storage as a dual-use asset. Underwrite it for operations and markets:
Capacity payments: Recurring revenue for standing ready to curtail load or discharge storage during system peaks or emergencies.
Demand-charge management: Discharge storage or adjust load during the intervals that set your monthly or yearly demand charges.
Resilience value: Storage and controls that earn market revenue also protect operations during outages—one set of assets, multiple paybacks.
Result: the same battery and building management system (BMS) that manage comfort and cost can also bid flexibility into wholesale programs through an aggregator.
If it shows up in NOI and holds through volatility, it supports valuation. That’s the owner’s lens.
What does this signal for data center leasing and site selection?
Hyperscale tenants are no longer insisting on firm megawatts only; they are trading operational flexibility for faster time-to-power. That elevates:
Controllable load and BMS capability:Sites that can shed or shift load on signal move to the front of the queue.
Onsite storage:BESS that is commission-ready for market participation shortens power timelines and improves tenant fit.
Utility-friendly site design:Visibility, telemetry, and interconnection at distribution voltage can be decisive in congested areas.
How are developers routing around the interconnection queue?
Alongside the Google–Voltus deal, Lightshift Energy is deploying multiple batteries in Virginia in less then or equal to
20 MW increments at existing distribution substations. The common logic: work with the grid that exists. For campuses behind a constrained feeder, distribution-scale storage is the on-ramp; the VPP is the marketplace it earns in.
Owner checklist: how to participate in PJM capacity via an aggregator
Inventory flexible assets:Chillers, heat pumps/water heating, EV charging, process loads, BESS, and controls. Confirm metering granularity and remote controllability.
Check eligibility:Aggregator programs differ by state and utility territory; some PJM states restrict third‑party aggregation. Verify rules before you plan revenue.
Telemetry and data:Sub‑hourly metering (often 1–5 minute intervals) and event telemetry are standard. Ensure IT/OT security and data pathways are in place.
Operational guardrails:Define comfort bands, production constraints, and minimum state‑of‑charge so dispatch never violates tenant SLAs.
Contract terms:Understand measurement & verification, performance baselines, non‑performance exposure, revenue splits, and settlement timelines.
Pilot first:Start with one asset class or one building, validate performance and settlements, then scale portfolio‑wide.
Risks, constraints, and program nuance
State opt‑out rules:In parts of PJM, state commissions may limit third‑party aggregation for certain customer classes. Your utility territory matters.
Baseline accuracy:Erratic operations can weaken baselines and reduce payable performance. Stabilize schedules where possible.
Non‑performance charges:Capacity obligations come with accountability. Build conservative availability margins and clear override protocols.
Co‑participation limits:Avoid double‑counting between utility demand response and wholesale aggregation; programs typically prohibit it.
Tenant experience:Thermostat setbacks and load shifts must be imperceptible to occupants; test sequences before live events.
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Frequently Asked Questions
What is the Google and Voltus Bring Your Own Capacity agreement?
A three-year deal in which Google funds a virtual power plant that aggregates customer-owned batteries and flexible equipment into 100 megawatts of market-accredited capacity in PJM, paying the customers who supply it.
How does a virtual power plant create revenue for a commercial building?
Buildings earn by: (1) avoiding demand charges during peaks, (2) receiving capacity payments for being available to respond, and (3) improving resilience during outages. The same battery management system and BMS that manage comfort and cost can bid flexibility into a wholesale market.
Why does the deal matter for commercial real estate?
It signals that hyperscale tenants now trade operational flexibility for faster power access, which raises the value of controllable load, onsite storage, and utility-friendly site design at industrial parks and campuses.
