AI Turns Urban Ice Batteries into Grid Powerhouses
- $6 billion: Projected growth of the VPP market by 2028, up from under $1 billion in 2021.
- 30,000 tons: Peak cooling capacity of CenTrio’s Union Station Plant in Houston, now integrated into grid stabilization efforts.
- 2050: CenTrio’s target year to achieve net-zero emissions across its entire portfolio.
Experts view this partnership as a groundbreaking model for leveraging existing urban infrastructure to enhance grid resilience and decarbonization, demonstrating how AI-driven optimization can turn traditional cooling systems into valuable grid assets.
AI Transforms Urban Cooling Systems into Grid Powerhouses
SAN FRANCISCO, CA – January 20, 2026 – In a move set to redefine the role of urban infrastructure in the energy transition, virtual power plant (VPP) operator Voltus and national district energy provider CenTrio have launched a strategic partnership to convert city-scale cooling systems into intelligent, revenue-generating assets for the electricity grid.
The collaboration will see Voltus’s artificial intelligence-powered platform manage and monetize CenTrio’s vast thermal energy storage systems, primarily large-scale ice batteries, transforming them from passive cooling infrastructure into active participants in grid stabilization and decarbonization efforts. This initiative represents a significant step forward in creating smarter, more resilient cities by unlocking the latent flexibility within existing infrastructure.
Unlocking the Power of Ice
At the heart of the partnership lies CenTrio’s sophisticated district energy technology. The company operates centralized plants that pipe chilled water to cool dense urban environments, serving everything from commercial skyscrapers and hospitals to sports stadiums and residential complexes. A key component of this operation is thermal energy storage, often in the form of massive ice battery systems.
These systems operate on a simple yet highly effective principle: they make ice during off-peak hours, typically overnight, when electricity demand is low and power is cheaper. During the hottest parts of the day, when air conditioning demand soars and the grid is most strained, the stored ice is used to chill water, drastically reducing the need to run energy-intensive chillers. This load-shifting capability is precisely what makes them so valuable to the grid.
Voltus’s role is to act as the digital intelligence layer, orchestrating these assets with a precision previously unattainable. The company's AI platform continuously analyzes a complex web of data—including real-time grid conditions, wholesale electricity market prices, and weather forecasts—to optimize the charge-and-discharge cycle of CenTrio's ice batteries. This ensures that cooling reliability for CenTrio's customers is maintained while maximizing value from grid services.
"CenTrio's ice battery technology represents the kind of flexible, sustainable infrastructure our grid needs," said Nathaniel Teichman, Senior Director of Partnerships at Voltus. "Our platform can intelligently coordinate these thermal storage assets to provide reliable grid services while maintaining essential cooling for CenTrio's customers."
A New Frontier in Decarbonization
This collaboration moves beyond traditional demand response, which typically focuses on reducing electricity consumption during peak demand to prevent blackouts or lower costs. The partnership will leverage Voltus’s pioneering Carbon Response program, a more targeted approach that dispatches flexible resources specifically when the carbon intensity of the grid is highest.
In essence, the platform identifies periods when the electricity supply is most reliant on fossil fuel-burning power plants and curtails CenTrio’s energy consumption at those precise moments. By shifting demand to times when cleaner energy sources like wind and solar are more abundant, the program actively reduces greenhouse gas emissions.
This initiative is a cornerstone of CenTrio’s ambitious Sustainable Infrastructure Plan, which commits the company to achieving net-zero emissions across its entire portfolio by 2050. The VPP market, projected to grow from under $1 billion in 2021 to over $6 billion by 2028, provides the economic framework to make such sustainability goals financially viable.
"This partnership with Voltus advances our commitment to achieve net zero emissions by 2050," stated Deena Morgan, Senior Vice President at CenTrio. "Through Carbon Response, we're not just providing reliable, efficient cooling – we're actively reducing grid carbon intensity and demonstrating how district energy infrastructure leads the decarbonization effort."
A Blueprint for Resilient Cities
The partnership will initially roll out in two critical markets. In Houston, CenTrio’s Union Station Plant, which serves 42 buildings across 19 million square feet and features a peak cooling capacity of 30,000 tons, will enroll its significant ice storage capabilities in the Carbon Response program. This will provide a vital source of flexibility to Texas's grid operator, ERCOT, particularly during periods of extreme heat.
Meanwhile, in New Orleans, CenTrio’s backup power generators will be integrated into the Midcontinent Independent System Operator's (MISO) Load Modifying Resource (LMR) program. This allows them to act as a paid capacity resource, enhancing regional grid reliability.
The Voltus-CenTrio model offers a scalable blueprint for other cities and large infrastructure holders. It demonstrates how existing, decades-old urban systems can be retrofitted with modern digital controls to address 21st-century challenges like grid instability and climate change. By aggregating these distributed energy resources (DERs) into a VPP, Voltus can offer grid operators a substantial, reliable block of flexible power without building a single new power plant.
This forward-thinking approach builds on CenTrio's established track record of innovation, which includes operating North America’s largest carbon-free ice battery system in Chicago and developing groundbreaking sewer-heat recovery projects in Denver. By transforming a core operational asset into an active grid tool, CenTrio is not only creating a new revenue stream but also pioneering a more integrated and sustainable energy future for the urban landscapes it serves.
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