Virginia Utility-Scale Virtual Power Plant Pilot Mandate
Source: Utility Dive
Dominion Energy’s New Mandate
On May 2, 2025, Virginia Governor Glenn Youngkin signed a crucial piece of legislation requiring Dominion Energy to propose a virtual power plant (VPP) pilot program with a capacity of up to 450 megawatts (MW). This law represents a significant milestone in the push for modernized energy solutions not only in Virginia but also sets a precedent nationally.
Details of the VPP Pilot Program
The new mandate stipulates that Dominion Energy’s Virginia subsidiary must develop a proposal for this virtual power plant pilot by December 1, 2025. The program is designed to include participation from a diverse range of customers, including:
- Residential
- Commercial
- Industrial
In a noteworthy inclusion, the pilot must also present incentives for at least 15 MW of residential battery additions, which will help enhance the stability and efficiency of the electric grid.
Innovative School Bus Program
In addition to the VPP, Dominion Energy is required to propose a program allowing it to utilize energy stored in electric school buses that are idled. This unique approach aims to maximize the use of existing infrastructure for energy storage, thereby optimizing the grid’s performance during peak demand.
Legislative Context
This legislation is tailored around model VPP enabling regulations developed by Solar United Neighbors, a group pushing for the integration of distributed energy resources (DER). Virginia stands out as the first state to adopt such legislation, yet similar bills have emerged in several other states, including Oregon and Massachusetts.
Goals and Future Evaluations
Following the pilot’s completion on July 1, 2028, the State Corporation Commission, which oversees utility regulation, will assess the program’s effectiveness in providing grid services during peak demand times. This review will be crucial for determining the utility’s future strategies regarding energy distribution and grid management.
Bipartisan Support
This legislation has been hailed as a “major bipartisan win” by stakeholders, emphasizing the collective agreement on the need for innovative solutions to energy challenges. Advocates, such as Shannon Anderson, the virtual power plant policy director for Solar United Neighbors, argue that the ongoing enthusiasm for such models could signal a transformative approach in the energy landscape.
Opening New Horizons for Distributed Energy
The Virginia VPP pilot is part of a broader national trend urging utilities to embrace large-scale virtual power plants as essential tools for responsiveness and energy management. As outlined by various experts, including Angela Navarro from ALN Policy and Law, this new regulatory framework enables utilities to tackle distribution system challenges and capacity constraints effectively.
By capitalizing on existing technologies, the program seeks to harness the potential of distributed energy sources, ensuring Virginia’s grid remains robust amidst growing energy demands.
Looking Ahead
With similar legislative measures being contemplated in states like California and New York, the push for virtual power plant programs reflects an emerging consensus on the importance of distributed energy systems in addressing current and future energy challenges. As Dominion Energy prepares to implement these initiatives, the eyes of the energy sector will be on Virginia, assessing the outcomes and potential for replicating success elsewhere.
Tags: Dominion Energy, virtual power plants, Virginia energy policy, Solar United Neighbors, grid management, energy legislation, distributed energy, electric school buses, bipartisan support, energy efficiency.