In the aftermath of Hurricane Maria in 2017, Puerto Rico faced a devastating blow to its electrical infrastructure, plunging the island into ongoing power shortages and frequent outages. However, residents and nonprofits responded with resilience, deploying rooftop solar panels and battery systems that now serve as vital energy sources during emergencies. Today, approximately 175,000 households, or about one in seven, have solar installations, with at least 160,000 also equipped with batteries, enabling them to contribute to grid stability and resilience.
These distributed energy resources have proven their worth; in recent months, Puerto Rico’s grid operator announced a significant milestone by dispatching around 70,000 batteries, providing roughly 48 MW of power—comparable to a small gas peaker plant—without fuel costs. Such efforts exemplify how community participation in energy production and storage can reduce outages and enhance grid reliability.
This model, often referred to as a “virtual power plant” (VPP), aggregates customer-owned batteries and demand management measures such as smart thermostats and electric vehicle charging shifts. When combined, these resources benefit the entire grid by alleviating peak demand pressures and decreasing the need for new centralized generation.
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. The legislation, HB2346, directs the utility to create a program with up to 450 MW capacity, focusing on demand optimization through distributed energy resources, including batteries, smart thermostats, and electric vehicle chargers. The initiative emphasizes stakeholder engagement and aims to incentivize at least 15 MW of residential batteries.
Additionally, Dominion is expanding its electric school bus program, which began in 2019. As of early 2024, the utility has deployed 135 electric buses across 25 school districts, utilizing their batteries to support the grid during peak times.
Other states have also pioneered VPP initiatives. California’s grid operator recently tested over 100,000 residential batteries, which collectively delivered an average of 535 MW during evening hours—equivalent to a coal-fired plant—highlighting the potential of distributed resources in large-scale grid management.
Similarly, Colorado and Texas have launched programs aggregating solar-powered batteries, while Michigan incentivizes electric vehicle owners to charge off-peak, and Arizona Public Service leverages smart thermostats for demand response. Vermont’s Green Mountain Power operates two battery programs that allow the utility to draw power when needed.
While Virginia has yet to implement a full-scale VPP, its residents are familiar with demand response programs like Dominion’s former “Smart Cooling Rewards,” which remotely cycled air conditioners in exchange for small payments. The current “Peak Time Rebate” program encourages voluntary reductions during high-demand periods but requires active participation from consumers.
Industry experts, including environmental advocates and legal analysts, see the Virginia legislation as a promising step toward a more resilient, efficient, and customer-centric energy grid. Although the current program may initially focus on school buses and thermostats, there is considerable potential for residential batteries to play a larger role, which could significantly impact the state’s energy landscape.
As stakeholder engagement begins, the success of Virginia’s pilot will depend on balancing utility needs with consumer participation and technological innovation. The Puerto Rican experience demonstrates that empowering communities and utilizing distributed energy resources can transform vulnerabilities into strengths, ultimately creating a more sustainable energy future.