Virginia is exploring a transformative approach to energy management, inspired by Puerto Rico’s successful use of customer participation in maintaining grid stability. Following legislation passed by the Virginia General Assembly, Dominion Energy is now tasked with developing a pilot program for a virtual power plant (VPP) that could revolutionize how the state manages electricity demand and supply.
Puerto Rico’s experience post-Hurricane Maria demonstrates the potential of harnessing distributed energy resources. After the storm devastated much of the island’s electrical infrastructure in 2017, residents and nonprofits rapidly adopted rooftop solar panels equipped with batteries. Today, approximately 175,000 households, or about one in seven, have solar systems, with at least 160,000 also utilizing battery storage. These installations not only provide individual resilience but also contribute to grid stability.
Through programs managed by companies like Sunrun, these solar-plus-storage systems can be dispatched to support the grid during emergencies, effectively reducing power outages. Recently, Puerto Rico’s grid operator, LUMA Energy, announced a significant milestone: the dispatch of around 70,000 batteries, delivering roughly 48 MW of power—comparable to a small gas peaker plant—without fuel costs.
This community-driven energy approach exemplifies how consumers can actively participate in maintaining a reliable grid. The concept of a VPP aggregates multiple distributed resources, such as batteries, smart thermostats, and electric vehicle chargers, to provide collective support to the grid, especially during peak demand periods.
Virginia’s legislation, specifically House Bill 2346, mandates a pilot VPP program capable of managing up to 450 MW. The program emphasizes demand optimization using batteries, smart thermostats, EV charging, and other storage solutions. It also requires incentives for at least 15 MW of residential batteries and involves stakeholder engagement in its development.
Additionally, Dominion Energy is expanding its electric school bus program, which began in 2019. Currently, 135 electric buses across 25 districts can feed power back into the grid when not in use, further enhancing community energy resilience.
Broader VPP initiatives across the United States underscore their potential. For example, California’s grid operator recently tested over 100,000 residential batteries, which collectively supplied an average of 535 MW during a peak evening period—power comparable to a coal plant.
Other states are also experimenting with VPPs. Colorado and Texas have programs that aggregate solar-powered batteries and demand response, while Michigan compensates EV owners for off-peak charging, and Arizona’s utility leverages smart thermostats for peak reduction. Vermont’s Green Mountain Power runs two battery programs, allowing the utility to draw on stored energy during high demand.
While Virginia has not yet implemented a full VPP, its previous demand response efforts—such as the now-ended Smart Cooling Rewards program—set a foundation. That initiative remotely controlled air conditioners during hot days, reducing peak load and earning participants a modest payment.
The new legislation aims to take this a step further by creating a comprehensive VPP that relieves consumers of the burden of managing their energy assets actively. According to Josephus Allmond of the Southern Environmental Law Center, the initial focus will likely be on school buses and smart thermostats, with residential batteries poised for significant growth.
Stakeholders, including consumer groups and energy advocates, are expected to have a vital role in shaping the program. Many experts believe that integrating distributed energy resources into the grid can lead to a more resilient, efficient, and cost-effective power system—an opportunity that Puerto Rico’s pioneering efforts have helped illuminate.
The initiative in Virginia to develop a virtual power plant pilot program sounds promising and could really set a new standard for community involvement in energy resilience. I think drawing lessons from Puerto Rico’s post-Hurricane Maria recovery efforts highlights how distributed energy resources (DERs) can be game-changers, especially in emergency situations. The fact that residents can have rooftop solar and batteries not only increases their individual resilience but also collectively strengthens the grid.
One challenge I see is motivating widespread participation in residential batteries and EV chargers, especially when incentives are modest. How do you think Virginia can effectively encourage consumers to adopt these technologies en masse? Are there particular outreach strategies or policy incentives that have proven effective elsewhere?
It’s exciting to consider how integrating these assets could lead to more cost-effective and reliable power, particularly as climate change increases the frequency of extreme weather events. I’ll be curious to see how stakeholder engagement shapes the pilot program and whether it can overcome some of the barriers we’ve seen in similar initiatives.
I find the idea of Virginia adopting a community-driven energy model inspired by Puerto Rico’s experience very encouraging. The fact that Puerto Rico has managed to dispatch around 70,000 batteries supporting the grid during emergencies shows the potential for large-scale resilience when consumers are actively involved. From my personal experience volunteering during local disaster responses, I saw firsthand how distributed resources like solar plus storage can be crucial during outages. Implementing a virtual power plant (VPP) that manages these assets collectively could significantly reduce grid stress during peak demands or emergencies.
One aspect that intrigues me is the challenge of scaling residential participation. While incentives are important, I wonder if informative outreach and community engagement could motivate more homeowners to get involved, especially with the added appeal of energy independence and cost savings. Do any of you have insights or examples of outreach strategies that have successfully boosted consumer investment in distributed energy resources? It would be interesting to see how Virginia can replicate or innovate beyond what’s been tried elsewhere, aligning stakeholder interests and fostering long-term participation.