Revolutionizing the Power Grid: Base Power’s Affordable Electricity Solution

Energy Storage Startup Base Power Expands into Illinois Grid Territory

Base Power, an energy storage startup, has recently started selling its massive home battery systems to residents in Illinois. This move marks the company’s entry into the territory operated by PJM Interconnection, the largest grid operator in the U.S. that has been facing challenges due to the increasing number of data centers.

One of PJM’s territories includes Northern Virginia, known for being one of the most densely populated data center regions globally. The high concentration of data centers, combined with a lack of new generating sources, has led to a significant increase in wholesale electricity prices within PJM over the past year. The situation has become so severe that AEP, a major utility in the region, is considering leaving the market.

Base Power originated in Texas two years ago with the goal of creating a virtual power plant centered around residential batteries. Unlike its competitors, Base offers larger batteries starting at 25 kilowatt-hours and requires customers to purchase electricity from the company. In Illinois, Base Power’s rates are 25% lower than utility provider ComEd’s.

The company’s strategic timing has been advantageous, with Base currently operating over 500 megawatt-hours of battery storage in Texas. By charging during off-peak times and discharging when the grid requires additional power, Base has been able to optimize its battery usage effectively.

Base’s expansion into the PJM grid comes at a crucial moment when the operator is facing criticism for its handling of increasing electricity demand. PJM had previously halted applications for new generating sources starting in 2022 but reopened the queue in April. Base’s entry into the market aligns well with the rising demand for electricity in recent years.

Since October, Base Power has been rapidly expanding following a $1 billion funding round led by Addition. This funding round closely followed a $200 million investment led by Andreessen Horowitz, Lightspeed Venture Partners, and Valor Equity Partners in April 2025.

While PJM has been slow to adopt new technologies like distributed energy storage historically, Base’s focus on residential solutions allows the company to bypass the challenges posed by the grid operator. According to Zach Dell, Base Power’s founder and CEO, the company deploys capacity behind the meter at residential homes, leveraging existing connections to avoid delays in the interconnection queue.

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