How one Texas energy retailer plans to forge a new path for VPPs

AI generated summary

Virtual power plants (VPPs) are garnering attention as a solution to grid flexibility and load growth issues, but the recent closure of Swell Energy and challenges faced by utility-scale pilots highlight the difficulties in this sector. While technical hurdles and slow utility adoption play a part, the primary obstacle lies in the struggle to generate profits in the VPP market.

Branch Energy, a Texas-based retail energy startup established in 2021, aims to revolutionize the VPP business model by managing behind-the-meter assets for existing customers, as opposed to the conventional revenue approach of adding margin to wholesale electricity. With a newly secured Series A funding, Branch plans to deploy financed and installed assets beyond their focus on AI-integrated retail energy platforms, starting with storage assets and targeting long-term commercial and industrial clients. By concentrating on Texas for now, Branch's unique approach sets it apart from competitors, focusing on simplicity and clean energy provision for a specific customer base.