Samsung bets this island startup can tame the grid with software and batteries

The electrical grid has undergone significant transformation over the last decade, driven by advancements in solar energy, wind power, and battery technology. Despite these developments, the grid still faces persistent challenges, particularly during peak demand periods. Michael Phelan, co-founder and CEO of Grid Beyond, highlighted this issue, stating, "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 energy shortfall is especially critical for tech firms and data centers, which require substantial electricity to support AI operations. Phelan explained, "If you have enough energy stored in a battery or an industrial load you can reduce—potentially hundreds of megawatts—you can facilitate the growth of hyperscalers." Grid Beyond is pioneering the integration of hardware and software to create a cohesive network of energy sources, effectively functioning as larger virtual power plants. The startup already manages around 1 gigawatt of energy from solar, batteries, wind, and hydropower, along with several gigawatts of demand from commercial and industrial facilities. To further its mission, Grid Beyond recently secured €12 million (approximately $13.8 million) in equity funding, led by Samsung Ventures. Other notable investors include ABB, Act Venture Cattail, Alantra’s Energy Transition Fund, Constellation, EDP, Energy Impact Partners, and Yokogawa. Their technology is already deployed in renewable energy installations and large commercial facilities across multiple countries, including Australia, Japan, the UK, and the United States. Originating from Ireland, Grid Beyond was well-positioned to tackle energy management challenges on the island, especially as the country increased its reliance on wind power. Phelan noted, “They hit this problem where they were an island and they had to balance the grid. Flexible load was essential for them.” Grid operators have long encouraged heavy energy users to reduce consumption during extreme demand periods, often incentivizing them to lower their power usage to avoid the costly construction of new infrastructure. As renewable energy sources proliferate, this practice has become more common, allowing industrial customers to shift their usage patterns. The advent of batteries has introduced a new layer of flexibility to energy management. Grid Beyond oversees several large energy storage projects, including a significant 200-megawatt battery in California. This technology not only helps to stabilize supply during fluctuations in renewable energy production but also enables rapid response to demand changes, outperforming traditional peaking power plants. This capability is particularly beneficial for data centers, which often experience spikes in power usage during AI training sessions. These spikes can destabilize the grid, but with batteries installed on-site, data centers can mitigate their impact. By connecting to a virtual power plant or utilizing local battery storage, data centers can achieve smoother energy profiles, minimizing unwanted fluctuations on the grid.