In the aftermath of Hurricane Maria, Puerto Rico pioneered a community-driven approach to energy resilience by deploying rooftop solar panels paired with batteries. Today, these efforts have significantly bolstered the island’s ability to withstand power outages, with approximately 175,000 homes equipped with solar energy systems, and at least 160,000 of those also featuring battery backups. These installations not only provide individual households with energy security but also contribute to the island’s wider grid stability through innovative programs that leverage stored solar energy during emergencies.
Recently, Puerto Rico’s grid operator announced a major milestone in this initiative. By dispatching around 70,000 batteries—equivalent to roughly 48 megawatts of power—during a recent hurricane season, the island demonstrated the potential of distributed energy resources to support grid reliability without relying solely on traditional fossil fuel plants. This approach exemplifies how active customer participation can turn consumers into vital components of a resilient energy system.
The concept of a virtual power plant (VPP)—aggregating distributed energy resources such as batteries, demand response, and smart appliances—has garnered interest beyond Puerto Rico. VPPs allow communities to collectively provide grid services, reduce peak demand, and minimize the need for costly infrastructure investments. They also empower consumers to play a proactive role in energy management, often earning compensation for their participation.
Inspired by Puerto Rico’s success, Virginia’s General Assembly has mandated the development of a pilot VPP program by Dominion Energy, overseen by the State Corporation Commission. Legislation calls for a program capable of managing up to 450 megawatts, primarily utilizing batteries, smart thermostats, electric vehicle chargers, and other distributed resources. The initiative aims to incentivize residential participation, with a minimum of 15 megawatts dedicated to residential batteries, and involves stakeholder engagement to shape its deployment.
Additionally, Dominion is expanding its electric school bus program, which began in 2019, allowing the utility to utilize the batteries of 135 electric buses across twenty-five districts to support the grid during peak times. This aligns with broader efforts to incorporate more distributed energy solutions into Virginia’s grid.
Other states have already made strides in this direction. California, for example, recently tested a massive VPP comprising over 100,000 residential batteries, which supplied an average of 535 megawatts during evening hours—comparable to a traditional power plant. Similarly, programs in Colorado, Texas, Michigan, and Vermont illustrate a growing trend of integrating demand response and battery storage to improve grid stability and reduce costs.
Virginia’s potential VPP, while still in development, builds on existing demand response programs such as Dominion’s former “Smart Cooling Rewards” and current “Peak Time Rebate,” which incentivize consumers to reduce energy use during high-demand periods. Experts believe that a well-structured VPP could significantly enhance grid resilience, especially with increased customer participation.
As one advocate notes, even a modest aggregation of residential batteries could make a meaningful difference, especially if the program expands beyond initial targets. Stakeholders are eager to see how Dominion’s framework will evolve and what role customers will play in shaping Virginia’s energy future.
The Puerto Rican model underscores the transformative potential of distributed energy resources. Harnessing consumer-owned assets not only improves reliability but also fosters a more democratized and sustainable energy system, an approach that Virginia is now beginning to explore.