Why Grid-Interactive Efficient Buildings Feature Prominently in Joe Biden’s Plans
Originally published on RMI.org.
By John Matson
The White House on May 17 announced a slate of new programs aimed at integrating US buildings into the clean energy economy. The initiatives include electrification programs for existing homes, workforce training for next-generation jobs in the buildings sector, and efforts to increase the adoption of efficient electric heat pumps and EV fast chargers.
Alongside the plans for job training and building electrification, the announcement also highlighted the Biden administration’s goals for grid-interactive efficient buildings — a less well-known approach that has significant potential to reduce carbon emissions.
In this blog post, we’ll explore what grid-interactive efficient buildings are and why they feature so prominently in plans for a clean energy future.
What Are Grid-Interactive Efficient Buildings?
A grid-interactive efficient building (GEB) continuously optimizes energy use by combining efficiency measures such as LED lighting, efficient heat pumps, and high-performance windows with smart technologies such as solar, battery storage, and integrated building controls. Rather than simply consuming energy from the grid based on the building’s baseline energy use and occupant demands, a GEB interacts with the grid to continuously manage its demand in response to key signals from the electric utility.
To save money, reduce strain on the grid, or limit carbon emissions from electricity generation, a GEB might shed load (e.g., automatically dimming LED lights throughout the building) or shift its load from one time to another (e.g., drawing from on-site batteries rather than the grid) in a practice known as demand flexibility, or load flexibility.
What Is Demand Flexibility?
Demand flexibility is a building’s ability to shed or time-shift its energy demand in response to near-real-time signals about conditions on the grid. Demand flexibility signals can include the current price of electricity, the availability of renewable energy sources such as solar and wind, and the carbon intensity of the current energy mix. For instance, a GEB might employ demand flexibility to shift its peak electricity demand to a time of day when solar energy is abundant and might otherwise be curtailed.
Demand flexibility offers significant promise for reducing the carbon emissions from building operations, especially as the grid integrates more distributed energy resources. But the benefits can extend beyond cost and carbon savings. As detailed in a new RMI insight brief, buildings that flex their demand can shift energy away from peak usage times, when utilities often rely on fossil-burning “peaker” plants to help meet surging demand. Demand flexibility can therefore reduce the need for these peaker plants, eliminating not only their carbon emissions but also their significant contributions to air pollution.
What Are the Potential Benefits of GEBs?
The potential energy, emissions, and cost savings from combining energy efficiency and demand flexibility in GEBs are substantial. Buildings account for more than 70 percent of US electricity consumption and at least one-third of US emissions, according to the US Department of Energy’s Building Technologies Office (BTO). A new GEB roadmap from the BTO estimates that smarter, more efficient buildings can eliminate 80 million tons of CO2 emissions annually by 2030, reducing the emissions of the entire US power sector by 6 percent. The emissions savings from GEBs would be equivalent to retiring more than 50 midsize coal plants or taking 17 million cars off the road.
Widespread adoption of GEB technologies would reduce peak loads on the grid, which would in turn reduce the needed capacity of the grid to meet those demands. The cost savings of GEBs would therefore extend beyond the owners and tenants of the GEBs themselves. By 2040, the BTO calculates, GEBs could save the US power system more than $100 billion in cumulative electricity generation and transmission costs.
What Are the New US Goals for GEBs?
In the GEB roadmap, released May 17 in conjunction with the White House announcement, the US Department of Energy laid out a goal of tripling the energy efficiency and demand flexibility of buildings by 2030, relative to 2020 levels. To reach that goal, the roadmap articulates 14 recommendations, from enhancing R&D for smart-building technologies to policy options for encouraging integration of GEB practices.
Among the roadmap’s recommendations is that government agencies should “lead by example” — deploying GEB measures in government-owned buildings to demonstrate the benefits and provide valuable insights and best practices for more widespread deployment. Already, the vast majority of US states have adopted requirements for energy usage or efficiency in government buildings, and demand flexibility could become a valuable tool for meeting those requirements.
At the federal level, the savings from GEBs would be significant. The US General Services Administration (GSA) is the nation’s largest landlord, with nearly 10,000 buildings and more than 375 million square feet of real estate under its control. In a 2019 cost-benefit analysis, RMI found that the GSA could save $50 million annually (about 20 percent of its energy expenditures) by implementing GEB measures across its portfolio of buildings. In all six locations that RMI studied in the GSA analysis, the payback period for GEB improvements was less than four years (and in some cases less than a year), demonstrating the soundness of the investment for the government and for taxpayers.
Next Steps at the Federal Level
A new report from the National Renewable Energy Laboratory (NREL) provides a blueprint for the GSA to select buildings that are ideal candidates for cost-effective GEB projects. The report also lays out strategies and best practices for integrating GEB measures into the various phases of contract development for energy-focused building retrofits.
The NREL report notes that the sheer number of buildings managed by the GSA would allow the agency to screen its real estate portfolio for the highest-value GEB candidates before applying the early lessons learned in implementing GEB measures in performance contracts. NREL also notes that the buildings with the greatest economic potential for grid-interactive efficiency tend to share features such as time-of-use energy rates, high demand charges for a building’s peak energy usage, or utility or state programs that incentivize utility customers to be responsive in their energy demand.
One of the challenges identified by the new reports from BTO and NREL is the maturity and availability of some technologies that would optimize GEB implementation. Systems for coordinated, whole-building automation in response to signals from the grid are among the emerging technologies that will be needed to maximize GEBs’ benefits. The GSA’s Proving Ground program is evaluating some of these building control systems in demonstration projects, and the learnings from those evaluations should help to further shape best practices for implementing GEB projects nationwide.
The Path to 2030 and Beyond
By integrating energy efficiency, distributed energy generation technologies, and demand flexibility into its buildings, the GSA can help to advance the state of the art in grid-interactive efficient buildings. The proof points from GEB projects in the federal government’s building portfolio will not only help advance the DOE goal of tripling demand flexibility and efficiency measures by 2030. They should also make for a cleaner, more resilient grid powering smarter, more efficient buildings—all while saving taxpayers money.
BYD’s new EV is about the size of a Tesla Model 3, but half the cost in China. After launching the e7, BYD is already boasting that it will be the “winner’s choice” for midsize EV sedans. Here’s our first look at the new low-cost electric sedan.
Will the new BYD e7 EV rival the Tesla Model 3 in China?
After previewing the e7 for the first time a little over a month ago, BYD officially launched the midsize electric sedan on Saturday.
The new e7 is available in three “Smart” trims, starting at 103,800 yuan, or about $14,500. For a limited time, BYD is offering a renewal price of 99,800 yuan ($13,900).
Buyers can choose from two BYD Blade battery options: 48 or 57.8 kWh, providing CLTC driving ranges of 450 and 520 km, respectively.
BYD’s new midsize EV sedan is about the size of a Tesla Model 3: 4,780 mm long, 1,900 mm wide, 1,515 mm tall, and 2,820 mm wheelbase.
Although it looks similar to other BYD models, the e7 has a few unique design elements, including a “Smiling and high-spirited” front face design, full-score LED headlights, and a duck tail.
We knew it would be a lower-priced EV after the preview showed the e7 with traditional door handles, rather than the flush ones found on newer models.
Like BYD’s other new vehicles, the interior is relatively simple with a 15.6″ central infotainment at the center and a 5″ driver display cluster. It’s also loaded with the advanced version of BYD’s smart cockpit and DiLink100.
The “ingeniously crafted comfortable cockpit,” as BYD calls it, is available with ergonomic cloud-sensing seats, an integrated hand gear, and a panoramic sunroof.
Although the e7 is part of BYD’s e-series, a lower-priced lineup aimed at younger drivers or taxi services, it’s now being absorbed into its Ocean series with other popular EVs like the Dolphin and Seagull.
BYD’s new EV is over half the cost of a base Tesla Model 3 RWD model in China, which starts at 235,500 yuan ($32,700). But, to be fair, the base Model 3 has a CLTC driving range of up to 634 km (394 miles). For 275,500 yuan ($38,200), the Model 3 Long Range AWD is rated with up to 713 km (443 miles) CLTC range.
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Hyundai is gaining traction where most automakers are struggling to stay afloat. Despite a flood of low-cost electric cars and an intensifying price war, Hyundai sees an opportunity “to write a new chapter” with its first dedicated EV rolling out in China.
Will Hyundai’s new EV spark a comeback in China?
Leading up to its debut, we thought it could be the IONIQ 4 with a sleek new look. The ELEXIO is Hyundai’s first custom-tailored EV for China.
During its global debut earlier this month in Shanghai, Hyundai said China is a “must-fight place,” calling it “the core of Hyundai Motor’s global strategy.” The company also revealed its “In China, for China, to the World” strategy as it looks to make a comeback in the world’s largest EV market.
According to Hyundai, the company is already seeing early success. On Monday, Hyundai’s joint venture in China, Beijing Hyundai, announced that its losses improved by over 100 billion won ($72 million) in the first quarter.
The company posted a net loss of 42.3 billion won in the first three months of 2025, down from the massive 146 billion won ($105 million) in Q1 2024. At this pace, Hyundai could see a profit by the second quarter in China.
Hyundai said lower operating costs spurred the cost improvements after the company sold its Chongqing plant last year.
It’s also due to rising exports. Beijing Hyundai exported 14,999 vehicles in Q1, up significantly from just 608 a year ago. Hyundai’s Chinese JV is investing 8 billion yuan ( $1.1 billion) as it looks to revamp the business.
Although it’s already seeing some success, Hyundai’s new ELEXIO electric SUV is expected to accelerate its momentum. With the EV launching in the second half of 2025, Hyundai could turn a profit by the end of the year. It may even happen as early as the second quarter.
Hyundai claims the new EV opens “a new starting point for the transformation from traditional fuel vehicle giant to electrification” in China.
The ELEXIO electric SUV, dubbed the Chinese version of its popular IONIQ 5, rocks a new look with crystal cube LED headlights and a full-length light bar that stretches across the front.
Based on Hyundai’s E-GMP platform, which powers the IONIQ 5, the ELEXIO is rated with up to 435 miles (700 km) CLTC driving range. More details, including prices and trim options, will be revealed closer to launch. Check back soon for the latest.
What do you think of Hyundai’s new electric SUV? Would you buy the ELEXIO in Europe, the US, or other global markets? Let us know in the comments.
Source: Newsis, Beijing Hyundai
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Tesla announced it paid Powerwall owners $9.9 million through its virtual power plant programs in 2024.
Distributed energy is working.
A virtual power plant (VPP) consists of distributed energy storage systems, like Tesla Powerwalls, used in concert to provide grid services and avoid the use of polluting and expensive peaker power plants.
Peaker plants are fossil fuel-powered power plants that are activated in peak energy usage times to ensure the grid has enough power to supply the demand and avoid brownouts.
It is a fairly new technology that aims to decentralize the grid, helping make it more secure and stable while reducing costs.
Tesla has been an early adopter of the technology through the deployment of its Powerwall, a popular home battery pack.
In areas with high penetration of the home battery, Tesla can make a deal with the local electric utility to pull power from the Powerwalls in customer homes when needed, and those homeowners get compensated at an attractive rate.
Today, Tesla announced that it paid Powerwall owners nearly $10 million through VPPs in 2024:
We paid out $9.9M to Powerwall owners who supported the grid through Virtual Power Plant participation in 2024.
Tesla’s first VPP launched in Australia in 2019. The company first aimed for 50,000 homes, but we learned that it is at about 7,000 homes and 35 MW as of the end of last year when Tesla was looking to sell the virtual power plant.
In 2021, Tesla launched a VPP pilot program in California, in which Powerwall owners would voluntarily and without compensation let the VPP pull power from their battery packs when the grid needed it.
It helped Tesla prove the usefulness of such a system.
Following the pilot program, Tesla and PG&E, the electric utility covering Northern California, launched the first official virtual power plant through the Tesla app.
This new version of the Tesla Virtual Power Plant actually compensates Powerwall owners $2 per kWh that they contribute to the grid during emergency load reduction events. Homeowners are expected to get between $10 and $60 per event.
Later, we reported that Tesla’s California VPP expanded to Southern California Edison (SCE) to now cover most of the state.
Last year, Tesla’s California VPPs reached over 100 MW in capacity, and the company also started building significant VPPs in Texas.
Some Powerwall owners are now reporting making hundreds of dollars per year per Powerwall through Tesla’s virtual power plant.
Electrek’s Take
This is awesome. I love distributed energy. VPPs not only make home energy storage more financially viable, but they also often mean that fossil fuel-powered peaker plants are being replaced by solar power and energy storage, as most Powerwalls and other home battery packs are linked to home solar power.
It’s not super popular yet because it requires the cooperation of the electric utilities and the regulators, but it appears to be viable in most places.
If you have home solar and energy storage, or looking to add solar and energy storage at home, it’s worth looking into.
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