Brad Pilgrim, co-founder & CEO of Parity looks at how HVAC automation and GEBs can preserve the grid, protect occupants, and generate revenue.
Summer 2025 has already delivered record-breaking heat for cities like New York and Philadelphia. On the hottest days, New York’s energy consumption can exceed its energy demand capacity. Cities have issued grid warnings, opened cooling centers, and asked buildings to dial down demand.
There has also been considerable discussion about battery storage and AI-driven energy loads. Projects like DEPCOM’s 800 MWh battery installation rightly get attention, especially with their use of HVAC as core infrastructure to maintain temperature stability.
That same principle applies to an even bigger and often overlooked opportunity: our buildings. It's becoming clear that buildings need to be flexible with their energy demand to support the grid.
Buildings have to be responsive in the face of extreme events that are becoming increasingly common. That’s the potential of Grid-interactive Efficient Buildings (GEBs), and the role HVAC automation can play in helping buildings to support the grid, protect tenants, and unlock new revenue streams.
If the grid is going to keep up, it doesn’t only need more capacity; it also needs to be more efficient.
GEBs are not a future concept; they're already here
The electric grid was designed in the 19th century and built for steady, predictable loads. What we have now is the opposite. AI, EVs, heat domes, and ageing infrastructure are pushing power systems to their limits and beyond - with building operators and residents left to deal with the fallout.
GEBs combine smart technologies and advanced automation to dynamically adjust their energy use in response to the needs of the electric grid. This means these buildings can lower their demand when the grid is stressed and ramp back up once the peak has passed. This not only supports grid stability but also reduces utility costs by avoiding expensive peak-time energy use.
These are buildings that can dynamically shift energy use based on grid signals, lowering demand when needed and flexing back without impacting occupant comfort or safety. They are how we adapt and protect our grid.
And the biggest, most underutilized asset in all of this? HVAC.
HVAC systems account for up to 60% of building energy use. Yet most of them are in set-and-forget mode. Manual, inefficient, and completely disconnected from what’s happening on the grid.
Parity changes that.
How parity responded during NYC’s June heatwave
When triple-digit temperatures pushed NYC’s grid to the brink earlier this year, Parity’s Optimizer service went to work behind the scenes.
Demand response events were called three days in a row, and Parity’s automated demand response protocols curtailed more than 1 megawatt (MW) of HVAC load across 50+ buildings with no onsite staff work required. This was accomplished while maintaining tenant comfort through Parity’s unique knowledge of the site and techniques such as strategic pre-cooling.
This wasn’t a drill. It was a real stress event, with real consequences.
Parity’s service helped buildings reduce demand at the exact moment it mattered most. That’s the power of HVAC automation: predictable performance delivered instantly, at scale.
Automation Isn’t Optional for HVAC
There’s no demand flexibility without automation. Parity’s Optimizer service remotely controls and optimizes HVAC systems in real time, responding to grid conditions and adjusting cooling loads automatically.
It’s not only about making adjustments during peak demand. It's about building resilience into the core of how buildings operate. During extreme heat, HVAC automation is essential.
The stakes are even higher when you’re responsible for residents or hotel guests who rely on indoor spaces for safety.
Parity’s tech provides operators with peace of mind. Pre-cooling strategies kick in ahead of a demand response event. Loads are tapered dynamically, not manually. Systems ramp back up gradually to avoid post-event spikes.
This approach not only generates revenue through participation in demand response programs but also reduces CO2 emissions and lowers exposure to fines from building performance standards like Local Law 97.
At the same time, automating and optimizing HVAC performance drives significant utility cost savings by reducing unnecessary energy usage and improving system performance.
The path forward
Battery storage will absolutely play a key role in grid stability. But it’s not the only path. If we want a resilient, affordable, and decarbonized grid, we need to look inside our buildings and make their biggest loads responsive.
HVAC isn’t a side note. It’s critical infrastructure, not just in battery farms, but in every multifamily high-rise and hotel property.
The GEBs era isn’t about installing more fancy hardware. It’s about automating and making better use of what we already have.