Virginia Mandates Dominion Energy to Launch Virtual Power Plant Pilot

Richmond, Virginia — A new law in Virginia requires Dominion Energy to submit a plan for a virtual power plant pilot to state regulators by December 1, 2025. This legislation, known as HB 2346/SB 1100, specifically targets Dominion Energy Virginia.

The law mandates that Dominion petition the State Corporation Commission, which oversees utility regulations, and propose a program tariff for residential, commercial, and industrial customers by November 15, 2026. Customers can join the program directly or through third-party aggregators.

After the pilot concludes on July 1, 2028, the commission must review its effectiveness in providing grid services during peak demand times. Following the evaluation, a permanent program will be developed, complete with procurement targets and performance metrics.

Shannon Anderson, the virtual power plant policy director for Solar United Neighbors (SUN), referred to the law as a significant bipartisan achievement. She noted that Virginia’s approach to virtual power plants aligns with SUN’s advocacy for distributed power plants (DPP).

“We don’t need more pilots,” Anderson stated. “The grid needs DPPs as big as possible now.” She highlighted the urgent need for distributed energy solutions in Virginia, particularly due to its prominent data center industry.

Thad Culley, public policy director for Sunrun, emphasized that this legislation marks a comprehensive strategy for tackling Virginia’s energy challenges under Governor Youngkin’s leadership. Angela Navarro, president of the clean energy firm ALN Policy and Law, echoed this sentiment, stating that the new tool will help address distribution system challenges.

The model legislation and VPP tariff developed by SUN aim to give lawmakers a framework for future regulatory filings and provide utilities with political assurance to pursue larger projects. Anderson mentioned that utility companies are increasingly recognizing the potential of large-scale virtual power plants.

Virginia is the first state to adopt legislation based on this model, but several other states, including New York, Illinois, and California, are considering similar measures. Additionally, numerous state utility commissions are moving forward with regulatory discussions related to virtual power plants as interest continues to grow.