Texas Grid's New Power Play: Home Batteries as Virtual Power Plants

AUSTIN, TX – December 08, 2025 – In the heart of one of America's fastest-growing regions, a quiet revolution is underway to bolster an electric grid known for its volatility. Farmers Electric Cooperative, a utility with roots stretching back to 1937, has partnered with Austin-based startup Base Power to launch a first-of-its-kind residential battery program in Northeast Texas. The initiative promises not only to bring affordable, whole-home backup power to thousands but also to deploy a sophisticated, intelligent network that could serve as a blueprint for grid resilience nationwide.

For years, the Texas grid, managed by ERCOT, has been a case study in extremes—plagued by catastrophic failures during events like 2021’s Winter Storm Uri while simultaneously navigating the challenges of rapid population growth and massive renewable energy integration. This partnership tackles these issues head-on, moving beyond traditional, centralized power plants to build a more distributed, flexible, and intelligent energy infrastructure from the ground up.

A Virtual Power Plant for Northeast Texas

At the core of the collaboration is the creation of a 20-megawatt virtual power plant (VPP), a networked fleet of residential battery systems that can be dispatched in unison to support the grid. While the batteries are physically located at individual homes, Base Power's proprietary software and a “front-of-the-meter” deployment configuration give Farmers Electric Cooperative the ability to operate them as a single, cohesive power source.

This is where the real innovation lies. Using advanced algorithms, the system will perform two critical functions. First is peak shaving: during periods of extreme demand, such as a sweltering summer afternoon, the batteries can discharge stored energy, reducing the overall load on the cooperative’s system. This helps avoid the need to purchase expensive power from the wholesale market or fire up costly and less efficient “peaker” plants. Second is energy arbitrage: the system’s AI will automatically charge the batteries when electricity is cheap and abundant—often overnight or during periods of high wind and solar generation—and sell that power back to the grid when prices spike.

“Farmers is committed to bringing practical solutions to the communities we serve,” said Mark Stubbs, General Manager of Farmers Electric Cooperative, in the official announcement. “Partnering with Base Power allows us to offer our members an affordable path to whole-home resiliency while strengthening our system for long-term growth.”

This AI-driven optimization represents a significant leap forward in grid management. Instead of reacting to demand, the utility can proactively manage it, enhancing stability and keeping costs down for its entire membership. It's a prime example of the intelligent networks that are foundational to building smarter, more resilient cities.

Redefining Home Energy Security

While the grid-level benefits are substantial, the most compelling aspect for residents is the promise of reliable, automatic backup power with virtually no financial barrier. The new program offers whole-home outage protection with what the companies state is “zero impact” to a member’s electricity bill. Base Power manages the installation, ongoing maintenance, and service for the life of the battery.

This model shatters the existing paradigm for home energy resilience. Previously, a homeowner in the rapidly expanding Dallas-Fort Worth Metroplex seeking protection from outages faced a stark choice: invest $8,000 to $20,000 in a fossil-fuel-powered standby generator, with its associated fuel costs, noise, and maintenance, or make an even larger capital investment in a solar-plus-storage system. Base Power's approach removes this prohibitive upfront cost.

The financial mechanics are driven by the VPP model. The revenue generated from selling grid services—like peak shaving and energy arbitrage—to the ERCOT market effectively subsidizes the cost of the hardware and the backup service for the homeowner. It transforms a passive home into an active grid asset, creating value that is shared between the utility, the technology provider, and the consumer.

“We are excited to welcome the Farmers membership into a growing community of Texans who are seeking more reliable and affordable backup power,” noted Zach Dell, CEO of Base Power. “With our distributed battery platform, we can add meaningful, dispatchable capacity to support growth while providing households with protection against outages.”

The Cooperative Advantage in Action

The partnership also highlights the unique strengths of the electric cooperative model in driving innovation. As a member-owned entity, Farmers Electric Cooperative's primary mandate is to provide safe, reliable, and affordable service, not to maximize shareholder profits. This focus makes it an ideal vehicle for deploying solutions that deliver direct, tangible benefits to its community.

Serving over 100,000 meters across twelve counties in a region experiencing explosive growth, Farmers Electric is leveraging this partnership to future-proof its system. By investing in distributed energy resources (DERs) instead of solely relying on traditional, costly infrastructure upgrades, the cooperative can meet rising energy demand more nimbly and cost-effectively.

This strategy reflects a broader trend where legacy utilities are embracing cutting-edge technology to adapt to a changing energy landscape. The program not only enhances reliability for individual members but also fortifies the local grid, supporting the economic vitality of the entire region. It’s a forward-thinking approach that balances immediate member needs with a long-term vision for sustainable growth.

A Scalable Blueprint for the Electric Future

While the initial deployment is focused on Northeast Texas, the model itself is designed for scale. Base Power is already partnering with other utilities and expanding across Texas, demonstrating the replicability of its vertically integrated approach. In a state with a deregulated market and specific programs designed to encourage aggregated DER participation, the regulatory framework is supportive of such innovation.

The wider implications for the future of energy infrastructure are profound. The mass deployment of VPPs marks a fundamental shift away from a centralized, unidirectional grid toward a decentralized, bi-directional network. This distributed architecture is inherently more resilient, as it is less reliant on a few large power plants and long-distance transmission lines, which are vulnerable to single points of failure.

Furthermore, these distributed batteries are essential for unlocking the full potential of renewable energy. They act as a critical storage buffer, absorbing excess solar and wind power and deploying it when the sun isn't shining or the wind isn't blowing. As the nation moves toward a cleaner energy future, this ability to smooth out the intermittency of renewables will become increasingly vital.

With installations set to begin in January 2026, the partnership between Farmers Electric Cooperative and Base Power is more than just a local energy project. It is a live demonstration of how innovative business models and intelligent technology can converge to build the connected, resilient, and sustainable infrastructure required for the next wave of urban development.