Behind-the-Meter Power Generation: Still the Biggest Shift in the AI Power Economy
Back in May, we published a six-part series with Capco examining a shift taking shape across the power industry: AI was no longer just consuming more electricity, it was beginning to change who generates it, how it is sold, and where it is delivered. Four months later, the premise of “Behind-the-Meter and Beyond,” the article that opened this series, isn't just holding up, it's become the conversation the entire industry is having. And here's why: interconnection queues remain long, and AI infrastructure cannot wait for them. As a result, generators, both established utilities and new entrants, are building power plants dedicated to a single data center customer, operating behind-the-meter and outside the traditional grid market. This approach delivers power faster, but it introduces a challenge: the billing and settlement systems built for the traditional utility model were not designed for private, customer-specific deals at this scale or pace.
What does this mean in practice?
Behind-the-meter deals are structured around private, long-term PPAs with individualized terms, rather than a standard index price.
Traditional ETRM and utility billing systems aren't well suited to the individualized pricing and terms behind-the-meter deals require: they weren't built for high-frequency metering or customer-specific pricing at this scale.
Adoption is accelerating beyond traditional generators: infrastructure, midstream, and industrial operators are now building behind-the-meter generation for AI data centers, often under private, long-term PPAs that operate outside ISO/RTO markets today but are engineered to be market-ready for future grid participation.
Dig deeper
What separates a behind-the-meter deal from a standard utility contract? What does it take to bill and settle these deals correctly? How does PowerOptix help behind the meter generators operate, settle and scale these new businesses today and be ready to participate in ISO/RTO markets tomorrow? The original article answers all three.
Read the full article, here: Behind-the-Meter and Beyond, the first of six in the Hartigen and Capco series "Commercializing Power for the AI Economy."
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Up next: We’ll examine the key takeaways from “Why Behind-the-Meter and Beyond Is the New Power Frontier,” the second article in this series.
Hartigen and Capco help power producers, from established utilities to new market entrants, build the commercial and digital foundation to compete in the AI power economy. To learn more, contact Matt Lehto or Glen Ragland.