INSIGHTSSERIES
Power & Utilities | Smart Grid
May 12, 2025
States Expand Virtual Power Plant Programs to Address Peak Electricity Demand
From pilot projects to incentive programs and regulatory structures, states are integrating distributed energy resources into grid planning and operations.
Recent actions across U.S. states reflect the growth of virtual power plant (VPP) initiatives, as utilities and regulators evaluate aggregated customer-sited assets to manage peak demand, enhance reliability, and reduce system costs. States are moving forward with…Read the full report
Key Takeaways
- Virginia has enacted legislation requiring Dominion Energy to seek approval for a pilot program to manage electricity demand—including through virtual power plants—by evaluating grid services using up to 450 MW of aggregated distributed energy resources.
- Arizona Public Service’s new pilot program allows up to 5,000 customers and their battery providers to participate in events where stored battery power is used to support the grid during times of high electricity demand.
- California has adopted the fourth edition of guidelines for its Demand Side Grid Support program that offers incentives to electric customers who provide load reduction and backup generation to support the grid during extreme events.
