Voltane

Glossary

What is co-location of load with generation?

Co-location means placing a large power user, such as a data center, at or next to a power plant so the two share a site or a grid connection.

Two main forms

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

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