Two main forms
- New generation built for the load: a developer builds gas, solar or storage next to a new data center.
- Load added at an existing plant: a data center is built beside a plant that already runs, and takes some of its output.
This is different from a colocation data center, which is a building shared by many tenants.
Why developers use it
Co-location can shorten time to power, because some of the needed power is already on site. It can also reduce the new transmission a project needs.
Why regulators watch it
When a load takes power from an existing plant, less power may reach the rest of the grid, and questions arise about who pays for grid services. Regulators in several regions have been writing rules on this. In Texas, SB 6 covers large loads that co-locate with existing power plants. Check the PUCT and FERC for the current rules before relying on a co-location plan.
Questions people ask
Does a co-located load still need a grid connection?
In most cases yes, for backup and for the hours the plant cannot cover. That connection is studied like any other.
Is co-location the same as behind-the-meter generation?
They overlap. Behind-the-meter describes which side of the meter the generation sits on. Co-location describes the load and the plant sharing a site, whatever the metering.
Related
More glossary
- What is time to power?
- What is powered land?
- What is a powered shell?
- What is large load interconnection?
- What is a point of interconnection?
- What is an interconnection queue?
- What is queue position?
- What is ERCOT?
Need a site, or have one?
Tell us what you need and Voltane finds, reports on and prices candidate sites in ERCOT. Or bring a site you already have for a path-to-power report (by request for now).