2024 ‘a pivotal year’ for virtual power plant policy: report

Brian Martucci | Source: Utility DIVE | Posted 02/13/2025

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Following 105 policy actions nationwide last year, 2025 could see continued momentum as load begins to grow, the NC Clean Energy Technology Center and the Smart Electric Power Alliance say.


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In 2024, 38 states and the District of Columbia implemented a total of 105 policy actions related to virtual power plants (VPPs) and distributed energy resource (DER) aggregations, according to a report by the NC Clean Energy Technology Center and the Smart Electric Power Alliance. Notable states like California, Texas, and Illinois led the way with multiple actions aimed at enhancing programs that utilize battery storage and various DERs. The report anticipates continued growth in these initiatives into 2025, driven by increasing electricity demand from sectors such as data centers and electrified transport.

The report highlights significant developments, including Colorado and Maryland mandating utilities to propose VPP programs, and North Carolina's approval of Duke Energy's PowerPair VPP initiative. With U.S. electricity demand projected to rise significantly, VPPs are seen as a flexible and cost-effective solution to meet future resource needs while potentially saving billions in infrastructure costs. As awareness of VPPs' benefits grows among lawmakers and regulators, 2024 is deemed a pivotal year for advancing VPP and DER policies.



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Source Link: https://www.utilitydive.com/news/virtual-power-plants-policy-der-aggregations/739970/

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