INSIGHTSSERIES
Power & Utilities | Smart Grid
July 13, 2026
Virtual Power Plants: From Demonstration Projects to Grid Resources
State-led initiatives are positioning customer-sited energy resources as dispatchable assets to support grid operations.
Virtual power plants (VPPs) are evolving from demonstration projects into grid resources as states increasingly recognize the…Read the full report
Key Takeaways
- Regulators are integrating virtual power plants into long-term planning, resource adequacy, and demand management to strengthen grid resilience and meet growing electricity demand.
- States are moving beyond VPP pilots by advancing legislation, regulatory frameworks, and utility programs that support large-scale deployment.
- VPPs are increasingly recognized as flexible grid resources that can help improve reliability, integrate renewable energy, manage peak demand, defer infrastructure investments, and complement interconnection reforms and grid modernization initiatives.
