Google and Tesla think we’re managing the power grid all wrong

Google, Tesla, data center developer Verrus and others say the power grid is underutilized and want everyone, especially politicians, to know that.

The companies, along with HVAC giant Carrier, virtual power plant company Renew Home, distributed energy resource developer Sparkfund, and smart electrical panel startup Span, have formed a new group called Utilize to get that message across. The group, which was launched on Tuesday, advocates for changing the way grids are built and used. The group correctly points out that the power grid is designed for short bursts of high demand. In most cases, there is a large amount of unused capacity.

I think the usage should be changed. The group claims there are already smarter ways to harness that power. We leverage many of these solutions with name checking, including battery storage, demand response, and virtual power plants. All of these solutions have emerged en masse over the past decade, but they remain underutilized. (Oh, that’s where the name comes from.)

These new technologies are often used to improve the resiliency of power grids. Take the Texas power grid, for example. Thanks to the increase in battery storage in the state, it has remained stable during the recent cold snap. Still, many regulators and politicians remain wary of these new technologies, choosing instead to stick with familiar options like centralized fossil fuel power plants.

Urise says it will “advocate for policies” that will encourage wider adoption of the new technology and will also benefit stakeholders.

Each member occupies a niche part of the grid. On the sales side, Tesla sells batteries and solar panels, Span sells electrical panels that can respond to load changes, Carrier makes heat pumps, and Sparkfund and Renew Home build and aggregate distributed energy resources. On the buy side, Google and Verrus require huge amounts of power to keep their servers running.

The organization calls itself the “Union,” which is a rather strange term. Utilize is already touting a victory in Congress, saying “some members of Utilize” supported a bill in Virginia that would require power companies to quantify and disclose their grid usage.

This language suggests that while Utilize may be pushing for policy changes, it may not be lobbying directly, at least not yet. TechCrunch did not receive a response to inquiries sent to Utilize and the state of Virginia regarding the organization’s status as a lobbyist.

Advocacy groups are no strangers to the utility industry, but Utilize’s combination of buy-side and sell-side companies with new technology makes it unique. Changing the way the grid is regulated is a long game, but if we don’t start now it will be too late.