Investing in Base Power: Modernizing the Electric Grid for the AI Era

Our aging electric grid is facing unprecedented challenges. Electricity demand is surging due to factors like AI adoption, consumer electrification, and the reshoring of manufacturing. Simultaneously, grid volatility and outages are on the rise, and interconnection queues are longer than ever. The grid, the largest machine ever constructed, is struggling to keep pace.

The Problem: An Outdated Grid

The author shares a personal anecdote about experiencing a four-day power outage during a storm while heavily pregnant. This experience highlighted the fragility and instability of the current electric grid. The grid wasn't built for the demands of the 21st century, leading to frequent disruptions.

The Solution: Base Power's Vision

Andreessen Horowitz (a16z) is investing in Base Power, a company aiming to build the new grid infrastructure needed for the current era. Base Power installs residential and commercial-scale batteries that not only lower energy bills and provide backup power but also form a rapidly scaling virtual power plant (VPP).

Batteries as the Foundation

At its core, Base Power's model involves installing batteries. However, the true innovation lies in how these distributed batteries create a flexible buffer for the entire grid. This network can absorb volatility, respond to real-time signals, and compensate when centralized infrastructure fails. As the network grows, Base Power is effectively becoming a bottom-up utility, complementing and redefining the traditional top-down system.

By providing flexibility at the point of consumption (the load source), Base Power delivers value to both homeowners and grid operators. Homeowners benefit from reduced peak usage and reliable backup power. Grid operators can avoid using expensive peaker plants and defer costly transmission upgrades designed for rare, extreme events. The ultimate outcome is lower electricity prices and fewer outages for consumers.

Built by Builders: Execution in a Complex Sector

Transforming the grid is a significant execution challenge due to its complexity and scale. Base Power distinguishes itself by building a high-throughput, software-driven deployment engine within a traditionally slow-moving sector. This includes:

Recruiting and Training: Effectively hiring and training electricians.
Manufacturing: Establishing a battery assembly line.
Navigating Red Tape: Streamlining the process of obtaining permits and dealing with utility regulations.

Base Power operates more like a full-stack power installation factory, focusing on a repeatable cycle of permit, design, and installation. The company's ability to install thousands of systems efficiently and with high quality across diverse locations in a short period is a testament to its operational excellence.

The Team Behind Base Power

The team, led by Zach Dell and Justin Lopas, comprises engineers, operators, and energy experts from leading technology companies such as Tesla, SpaceX, and Anduril. This team is adept at tackling complex, real-world problems, making them an ideal investment for a16z.

Series B Investment Announcement

Today, a16z is proud to announce its investment in Base Power's Series B funding round. This investment signifies a belief not just in battery technology, but in a fundamental reimagining of how energy is stored, delivered, and orchestrated. It's a commitment to a software-native utility built for a new energy paradigm and, most importantly, a bet on a team capable of reshaping the future of decentralized energy.

Call to Action

Base Power is actively hiring for individuals passionate about building the future of energy. Interested candidates are encouraged to explore career opportunities.

About the Author

Erin Price-Wright is a general partner at Andreessen Horowitz, focusing on American Dynamism and AI for the physical world. Her expertise lies in identifying and supporting companies that are driving significant technological and societal change.

Related Investments

The article also lists other relevant investments by a16z, including OpenRouter, Cluely, Flow, Toma, and LMArena, showcasing the firm's focus on innovative technology sectors.