In the past ten years, the electrical grid has undergone more transformation than in the previous fifty. Solar power, wind energy, and battery technology have shifted electricity generation from centralized producers. However, the grid continues to face the same core issues.

“The issue with the grid is primarily a peak issue. Typically, power levels are sufficient, but during peak periods, there may not be enough available,” stated Michael Phelan, co-founder and CEO of GridBeyond, in a conversation with TechCrunch.

Currently, these power shortages are especially affecting technology firms and data center operators, which require substantial electricity to train and run AI systems. 

“However, if you have adequate energy stored in a battery or can reduce an industrial load, which can reach hundreds of megawatts, you can initiate the establishment of those hyperscalers,” Phelan added.

GridBeyond is developing both hardware and software to integrate various segments of the grid into larger virtual power plants. The startup is already responsible for managing approximately 1 gigawatt of solar, batteries, wind, and hydropower, and has “several gigawatts” on the demand side across commercial and industrial sites, according to Phelan.

To broaden its offerings, GridBeyond recently secured a €12 million ($13.8 million) equity round led by Samsung Ventures, as exclusively reported by TechCrunch. Other investors include ABB, Act Venture Capital, Alantra’s Energy Transition Fund, Constellation Technology Ventures, EDP, Energy Impact Partners, Enterprise Ireland, Klima, Mirova, and the Japanese electronics and software company Yokogawa.

The startup has implemented its hardware controllers in batteries and renewable energy facilities, as well as substantial commercial and industrial operations across Australia, Ireland, Japan, the U.K., and the United States.

Similar to various virtual power plant companies, GridBeyond, based in Dublin, originated on an island. As Ireland began incorporating wind energy, Phelan noted, “they encountered an issue due to their island status, requiring them to balance the grid. Consequently, it was very applicable for them to have flexible loads they could introduce into the market.”

For an extended period, grid operators have requested large consumers to curtail their power consumption during extreme heat events, often providing financial incentives for reducing peak demand. This method is more cost-effective than constructing new transmission infrastructure or energy generation facilities. As renewable energy has proliferated, this strategy has been adopted more widely, enabling industrial and commercial clients to lessen their energy usage at night or during periods of low wind.

Recently, batteries have introduced a new element. GridBeyond oversees several significant energy storage projects, including a 200-megawatt battery in California. This flexible supply source helps address fluctuations in renewable energy output.

Batteries present another benefit: they can respond to demand much more swiftly than conventional peaking power plants, which may take minutes to activate. This capability allows the company to engage in rapid buying and selling of power through arbitrage. 

Additionally, it opens up new opportunities for data centers. Many facilities do not require a constant power supply, instead peaking during AI training sessions. These peaks can disrupt the grid—“akin to the issue that caused the collapse of the Spanish grid, which is not desirable,” Phelan explained. Batteries located at data centers can mitigate much of this load, stabilizing the site’s demand pattern on the grid to prevent unwanted fluctuations. 

By connecting to a nearby virtual power plant or utilizing batteries on-site, “it’s evidently simpler for them to establish a connection,” he mentioned.

Update 5:30 pm ET: The article was revised to specify that the investment originated from Constellation’s venture division, Constellation Technology Ventures.