Samsung Backs Startup to Stabilize Grid With Software and Batteries
▼ Summary
– The electrical grid has transformed significantly in the last decade with the rise of solar, wind, and batteries, but it still faces a fundamental peak-demand problem.
– Tech companies and data centers are particularly affected by power shortages, as they require massive amounts of electricity for AI operations.
– Grid Beyond builds virtual power plants by connecting distributed energy resources and managing demand, and recently raised €12 million in funding led by Samsung Ventures.
– The company uses batteries and flexible industrial loads to balance the grid, providing fast response and arbitrage opportunities that are cheaper than building new infrastructure.
– Batteries at data centers can smooth out power demand spikes from AI training, preventing grid instability and making it easier for facilities to secure grid connections.
The modern electrical grid faces a critical challenge: managing the sharp peaks in demand that can overwhelm supply, a problem intensified by the massive energy appetites of data centers and AI development. Samsung Ventures is leading a significant investment in Grid Beyond, a startup developing software and hardware solutions to stabilize power networks by creating virtual power plants. This approach aggregates distributed energy resources like batteries and renewable generation, along with flexible industrial demand, to provide the grid with rapid, reliable support exactly when it’s needed most.
Michael Phelan, co-founder and CEO of Grid Beyond, explains the core issue. “The problem on the grid is a peak problem. Most of the time you’re okay, you have plenty of power. But in those peak hours you might not have enough.” This shortage is now acutely felt by technology companies requiring vast amounts of electricity to train and operate advanced AI models. Phelan notes that solutions like stored battery energy or adjustable industrial loads, which can scale to hundreds of megawatts, are becoming essential to support the construction of new hyperscale data centers.
Grid Beyond’s technology acts as a digital conductor, stitching together disparate parts of the energy system, including solar farms, wind turbines, hydropower, and large-scale batteries, to function as a unified, virtual power plant. The company already manages approximately one gigawatt of generation and storage assets. On the demand side, it coordinates “several gigawatts” of flexible power usage across commercial and industrial facilities globally.
To accelerate its expansion, Grid Beyond recently secured a €12 million equity round. The investment was spearheaded by Samsung Ventures, with participation from a consortium of strategic backers including ABB, Act Venture Cattail, and Energy Impact Partners. The startup has installed its hardware controllers in facilities across Australia, Ireland, Japan, the United Kingdom, and the United States.
The company’s origins trace back to addressing grid stability on an island. As Ireland integrated substantial wind power, it encountered the inherent challenge of balancing supply and demand on an isolated grid. This environment proved ideal for developing and deploying flexible load management solutions, which form the foundation of Grid Beyond’s virtual power plant model.
Grid operators have traditionally managed peaks by incentivizing large consumers to temporarily reduce usage, a practice more economical than constructing new power plants or transmission lines. The rise of intermittent renewable energy has expanded this need, requiring customers to adjust consumption when solar or wind output drops.
The integration of large-scale battery storage adds a transformative new dimension to grid management. Grid Beyond oversees several major energy storage installations, such as a 200-megawatt battery system in California. These assets provide a swift, flexible source of supply to compensate for dips in renewable generation. Crucially, batteries respond to signals in milliseconds, far faster than traditional gas-fired peaking plants that require minutes to ramp up. This speed enables sophisticated energy arbitrage, buying and selling power to capitalize on real-time price fluctuations.
This capability is particularly valuable for modern data centers, whose power draw is not constant but spikes dramatically during intensive AI training sessions. These sudden surges can create dangerous oscillations on the grid. Batteries deployed at data center sites can absorb these sharp load increases, smoothing the facility’s overall power profile and preventing disruptive grid fluctuations. According to Phelan, this localized solution also simplifies the process for data centers to secure grid connections, as they present a more stable and predictable demand to network operators.
(Source: TechCrunch)
