INSIGHTSSERIES
Power & Utilities | Smart Grid
May 4, 2026
States Turn to Virtual Power Plants to Support Grid Operations Amid Growing Demand
From new program designs to utility-led deployment, recent actions across Hawaii, Minnesota, New Jersey, and Virginia highlight varied approaches to scaling virtual power plants.
Virtual power plant (VPP) initiatives are expanding across U.S. states as customer-owned generation and storage are increasingly viewed as…Read the full report
Key Takeaways
- Hawaii regulators have initiated a docket to implement a VPP grid-services program to better integrate customer-sited resources and support grid operations across Hawaiian Electric’s service territories.
- The Minnesota Public Utilities Commission has approved the state’s first utility-owned VPP program, advancing Xcel Energy’s plan to link smaller battery units across the distribution system for storage and dispatch of electricity closer to where it is consumed.
- Virginia has enacted legislation allowing electric cooperatives to establish VPP programs and offer incentives for customer-sited battery storage to enhance grid flexibility and reliability.
