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NRG Energy and Sunrun Partner to Expand Distributed Energy in Texas

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Key Takeaways

  • NRG has partnered with Sunrun, linking home batteries to a VPP.
  • NRG taps home batteries for flexible, dispatchable energy and grid resilience.
  • NRG aims for a 1-GW virtual power plant by 2035, adding flexible capacity without building high-cost plants.

NRG Energy, Inc. (NRG - Free Report) has entered into a new multi-year agreement with Sunrun (RUN - Free Report) , which is a home solar and battery storage company.

Per the agreement, NRG's retail electricity brand, Reliant, will offer Sunrun's solar-plus-storage systems to homeowners of Texas.

What’s the Key Idea Behind This?

The objective of this partnership is to connect all home batteries storage systems, which will then act as one large virtual power plant. This network of home battery storage systems will supply excess clean power back to the grid and provide essential support when electricity demand on Texas’s grid is at its highest. The distributed energy will increase the reliability of the grid.

How Will This Partnership Benefit NRG Energy?

This strategic partnership is highly advantageous for the company, as rapid economic and population growth in the region is driving a sharp rise in electricity demand. Instead of building new, high-cost power plants, the company can tap into the existing distribution network of home battery storage systems.

NRG’s partnership with Sunrun will help unlock a new source of dispatchable, flexible energy, while enabling customers to generate value from their homes and strengthen overall grid resilience.

NRG offers a comprehensive home energy solution that includes optimized rate plans and smart battery programming through its retail electricity brand, Reliant. Combined with Sunrun’s solar-plus-storage systems, this solution helps customers manage their energy costs more effectively while also enabling the company to strengthen customer relationship management.

This partnership is expected to contribute toward NRG’s long-term goal of creating a 1-gigawatt (GW) virtual power plant by 2035.

Growing Demand for Reliable Clean Energy

Demand for clean electricity is rising due to economic developments, investments in massive AI based data centers, usage of electric vehicles and weather variation.

Millions of households across the United States can actively contribute to the proper functioning of the grid by each sending small volumes of electricity back to it.

NRG Energy and Sunrun can jointly harness power from individual homes to help create a more reliable grid and meet rising electricity demand in Texas

Price Movement of NRG

Over the past year, NRG’s shares have risen 70.9%, which beat the industry’s growth of 20.5%.

Zacks Investment Research

Zacks Rank & Key Picks

NRG currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the same industry are Ameren Corporation (AEE - Free Report) and IDACORP, Inc. (IDA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AEE and IDA’s estimated long-term (three-five years) earnings growth rate is 8.52% and 8.01%, respectively.

The Zacks Consensus Estimate for AEE and IDA’s 2025 earnings per share indicates year-over-year growth of 8.21% and 6.36%, respectively.

 


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Sunrun Inc. (RUN) - free report >>

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