Base Power, Backed by a16z, Provides Affordable Electricity to Grid’s Most Critical Areas
Base Power, an innovative energy storage startup, has kicked off sales of its large home battery systems in Illinois. This marks the company’s first entry into the territory of PJM Interconnection, the largest grid operator in the United States, which has faced significant challenges due to the influx of new data centers.
The PJM region includes Northern Virginia, a hotspot for data centers, which has seen a dramatic increase in energy demand. The limited development of new energy sources has nearly doubled wholesale electricity prices in PJM over the last year. The situation has become so critical that AEP, one of the prominent utility companies in the area, has considered exiting the market.
Founded two years ago in Texas, Base Power aims to create a virtual power plant that relies on residential batteries. These batteries, starting at 25 kilowatt-hours, are larger than many competitors’ offerings. Instead of selling the batteries outright, Base Power requires customers to purchase electricity directly from them, with rates in Illinois being 25% lower than those of the utility company ComEd.
Base Power’s timing is noteworthy, as it currently manages over 500 megawatt-hours of battery storage across Texas. The company charges its batteries when electricity prices are low and discharges them during peak demand periods on the grid.
Entering the PJM market coincides with a time of scrutiny for the grid operator, which has faced challenges in managing rising energy needs. PJM had put a stop to applications for new generating sources in 2022 but reopened the queue only in April. Unfortunately, this delay has occurred amid a surge in electricity demand over the past four years.
Base Power’s expansion accelerated following a significant $1 billion funding round led by Addition in October, building on a previous $200 million investment round that included contributions from Andreessen Horowitz, Lightspeed Venture Partners, and Valor Equity Partners earlier in 2025.
Traditionally, PJM has been slow to embrace new technologies like distributed energy storage. However, Base Power’s focus on residential installations allows it to bypass the cumbersome processes associated with the grid operator.
“We are deploying capacity behind the meter at residential homes, leveraging existing interconnections, so we do not get stuck in the interconnection queue,” explained Zach Dell, the founder and CEO of Base Power.
