Oracle Says Opower Cut Peak Electricity Demand by 1 GW in 2026

Behavioral programs expand virtual power plants

Oracle Opower used behavioral demand response and peak time rebate programs to encourage customers to reduce or shift electricity use during periods of high demand. The company says the approach allows utilities to draw on flexible capacity across their customer base, including customers who do not have connected devices.

Opower programs supported utilities during 73 events in 2026, nearly 50% more than the 49 events reported for 2025. Utilities achieved average peak savings of 16,592 kilowatts per event, which Oracle equates to meeting the peak demand of 4,150 homes.

The 1 GW of demand reduction was equivalent, according to Oracle, to more than three Fredonia Generation Stations in Washington state. These are “peaker” power plants that provide backup electricity during demand surges. Oracle says the programs also helped customers reduce energy bills, with peak time rebate participants able to earn monetary incentives for cutting electricity use during events.

Utilities report wider participation and peak savings

Oracle says 4.3 million customers participated in its programs in 2026, up from 3.3 million in 2025. Puget Sound Energy used behavioral demand response as part of its virtual power plant strategy and reported peak load reductions of up to 16.6 megawatts per event across three successive seasons.

Earlier this year, PSE added a bill credit of $0.50/kWh to its Flex Events program alongside behavioral messaging. “We're excited to continue partnering with Oracle to design customer-focused solutions that are easy to participate in, reduce barriers to engagement, and deliver meaningful value to the people we serve,” Tom Smith, PSE’s supervisor for demand response, said in the announcement.

CPS Energy said more than one-third of its nearly a million customers participated in behavioral demand response events this summer. The utility said Oracle’s program brought more than 350,000 customers into its virtual power plant, while 12 events reached nearly 19 megawatts during August.

Year-round events and targeted messaging

Oracle expanded its behavioral demand response and peak time rebate programs earlier in 2026 to support events throughout the year. The company said this gives utilities the ability to apply lessons from summer programs before, during and after winter storms, as some regions move toward dual-peaking or winter-peaking electricity demand.

Opower also added tools that allow utilities to target different customer segments at the same time with different messages or product variations. Oracle says this can help utilities tailor communications to individual customers while broadening participation in demand response and virtual power plants.

For users, the programs can provide specific instructions and financial incentives instead of generic requests to consume less electricity. Oracle’s example is a message showing that shifting air conditioning use by 15 minutes could save money during a peak event, followed by information about the household’s performance. The company says this model can help households share in savings while supporting grid reliability.