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NRG Increases 2025 Texas Residential VPP Target To 150 MW, Up From 20 MW
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In reporting second quarter earnings today, NRG Energy reported that NRG has raised its 2025 Texas Residential Virtual Power Plant target to 150 MW, up from 20 MW.
"The program remains on track to achieve 650 MW in Texas by 2030 and 1 GW by 2035," NRG said
NRG also said that the Vivint Home Essentials offering, which leads the VPP program, is active across all major brands and channels, with, "initial
adoption rate 15 percentage points better than plan."
In discussing the VPP program, NRG said, "~40% of customers purchased additional smart home services -- double
previously stated target of 20%".
NRG reported that it has entered into 295 MW of "premium, long-term retail agreements," to power data centers constructed on two NRG-owned sites in Texas.
These agreements are for 10 years, extendable up to 20 years
Pricing for these agreements is, "above midpoint of targeted $70–90/MWh range with protected margins," NRG said
Initial powering is expected by the second half of 2026, with the facilities to be fully online by 2030.
There is potential to expand up to 1 GW across additional sites on a long-term basis, NRG said
In response to an analyst question during an earnings call about the margin for such data center transactions, on the gamut from higher residential margins to lower C&I or POLR margins, Larry Coben, Chair, President, and Chief Executive Officer for NRG Energy said, generally, that the company views such data center margins as closer to a C&I contract with a "premium" margin
NRG reported retail volumes for the second quarter of 2025 as follows
NRG reported second quarter 2025 Adjusted EBITDA of $909 million, versus $962 million in the year-ago quarter, primarily impacted by the absence of earnings from the Airtron sale in 2024,
expiration of the Cottonwood lease, deactivation of Indian River Unit 4, and higher equity compensation as a result of higher share price in 2025
For NRG's Texas segment, second quarter 2025 Adjusted EBITDA was $512 million, $60 million higher than the $452 million reported in the prior-year quarter. The increase was primarily driven by, "improved retail margin."
For NRG's East segment, second quarter 2025 Adjusted EBITDA was $99 million, $110 million lower than the prior-year quarter. "This decrease is primarily driven by increased supply costs to serve retail load, partially offset by increased retail natural gas margins and higher capacity prices for owned generation," NRG said
For NRG's West/Services/Other segment, second quarter 2025 Adjusted EBITDA was $43 million, $30 million lower than the prior-year quarter. The decrease was primarily driven by the sale of Airtron in September 2024 and the expiration of the Cottonwood lease in May 2025, partially offset by higher retail power margins, NRG said
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Reports Improved Retail Margin In Texas & Other Markets
Enters Into 295 MW Of "Premium", Long-Term Retail Agreements To Power Data Centers On Two NRG-Owned Sites In Texas
August 6, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
Power (TWh)
2Q25 2Q25 2Q24 2Q24
Texas EWO Texas EWO
Home 10 4 11 4
Business 10 14 10 15
Total 20 18 21 19
Natural Gas Sales (MMDths)
Total -- 364 -- 395
EWO: East/West/Other, includes Services
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