Just about every week, Shawn Grant, who works for Salt Lake City-based Rocky Mountain Power, gets an inquiry from another utility looking for information about the company’s Wattsmart battery program.
“We want to do something. … How did you guys do it?’” Grant, the company’s customer innovation manager, says he’s often asked. “We’re always fielding those questions.”
The program pays customers with solar who opt to install battery storage systems for the ability to use that stored electricity to help balance flows on the electric grid.
For customers, the benefits come in the form of lower electric bills and backup power in case of an outage. For Rocky Mountain Power, which has 1.2 million customers in Utah, Wyoming and Idaho, the program allows the company to harness the collective power stored in those distributed batteries to shave electric demand when it spikes rather than calling for more generation from a traditional power plant, among other uses.
“We’re using every battery every day to reduce demand on the grid,” Grant said.
The concept is known as a virtual power plant, and grid operators, utilities, state regulators and lawmakers across the country are increasingly exploring the possibilities. They are seen as a cost-effective way to aid an electric grid that in many parts of the country is increasingly embattled by power plant retirements as well as difficulties building new, cleaner generation and the transmission lines they need — all at a time when huge projected electric demand increases loom.
“We’re now in this load-growth era,” said Robin Dutta, acting executive director at the Chesapeake Solar and Storage Association, a solar and storage industry group focused on Maryland, Virginia and Washington, D.C. “When you’re mitigating peak demand growth at the source, that’s perhaps the most cost effective way to modernize the grid.”
Nearly 800,000 American homes installed a new solar or solar and energy storage system in 2023, according to the Solar Energy Industry Association. That growth set a record, with about 6.8 gigawatts installed, a 12% increase from 2022. Electric vehicles, another potential grid resource as a store of energy, also broke a sales record last year, despite consumer uptake being slower than some expected.
“These are devices that people are buying anyway because they’re faster, better, cheaper and virtual power plants allows everybody to leverage these devices while putting some money back in the pockets of people that bought the thing in the first place,”said Brian Turner, a director at Advanced Energy United, a clean energy trade group
The U.S. Department of Energy found in a report last year that large-scale deployment of virtual power plants “could help address demand increases and rising peaks at lower cost than conventional resources, reducing the energy costs for Americans — one in six of whom are already behind on electricity bills.”
They’re not a new concept, the DOE noted, adding that most existing virtual power plants are so-called demand response programs. In Virginia, for example, the commonwealth for years has run a program that enrolls hundreds of public facilities (airports, universities, K-12 schools, municipal buildings, water treatment plants and others) that agree to reduce or shift their electric demand to relieve strain on the grid. The DOE report says deploying 80 to 160 gigawatts of virtual power plants by 2030 could save about $10 billion in annual grid costs and would “direct grid spending back to electricity consumers.” At that scale, virtual power plants could meet between 10 and 20% of peak electric demand. The Rocky Mountain Institute, a research nonprofit focused on sustainability, called virtual power plants “a valuable and largely overlooked resource for advancing key grid objectives,” including reliability, affordability, decarbonization and electrification, among others.
However, many states are starting to take notice of the potential:
Experts who study and run the nation’s electric grid are worried about the pace of the energy transition. Old coal and gas plant retirements are accelerating, driven by economics, state clean energy policies and utilities’ own decarbonization goals. At the same time, massive backlogs in the queues to connect new power resources — overwhelmingly wind, solar and battery projects — in the regional transmission organizations that run the grid in much of the country mean big delays in replacing that retiring power generation. And after roughly a decade of flat electric demand, load growth is projected by many experts to explode as a result of transportation, industrial and home heating electrification, as well as a surge in data center development, among other factors. Throw in the fact that the construction of new transmission lines, essential to get excess power to where it might be urgently needed, has also stagnated and a problematic picture emerges.
“Most utilities in the country are planning on pretty significant load growth,” said Turner from Advanced Energy United. ”They could plan to build a new peaker plant or they could plan to ‘build’ VPPs.”
That’s where utility incentives come into play.
Generally speaking, Turner said, utilities that operate transmission and distribution systems are more friendly to the idea. Companies that also own their own generation, – and make a sizable chunk of their income from guaranteed profits on building new plants – , might not like the idea of a program that erodes the business case for a pricey new facility.
“That’s why we have utility commissions,” Turner said. “They exist to say to the utility that virtual power plants are a cheaper option for the ratepayer and therefore you should implement it.”
However, even companies that might have resisted the idea are facing such dire electric-demand growth scenarios that virtual power plants may be attractive ways to get more flexibility out of the grid more quickly than building new generation.
“This is a way to get the capacity online faster and oftentimes cheaper,” Turner said. “Meeting that load growth is a real challenge in a lot of places.”
CLEAN ENERGY: The vast majority of power on New England’s grid on March 30 — 82% — came from emissions-free energy resources, primarily wind and solar power, a feat considered unheard of just a decade ago. (Concord Monitor)
OFFSHORE WIND: Federal tax credits encourage wind project owners to repower their turbines and boost energy output, as is the case at the Twin Ridges Wind Farm near Pittsburgh. (Pittsburgh Post-Gazette)
NUCLEAR: PSEG tells federal energy regulators it will file for license renewals in 2027 for two nuclear plants — a four-year extension for Salem’s units and a 20-year extension at Hope Creek. (World Nuclear News)
GRID:
SOLAR: A farm resort near Scranton, Pennsylvania, receives federal rural energy funds to install enough solar on a building’s roof to power 15 homes. (WVIA)
COAL: The Army Corps of Engineers says it should be able to open a limited-access channel by the end of the month to access Baltimore’s port, through which a notable chunk of the country’s coal exports pass. (BisNow)
UTILITIES:
BUILDINGS: As some municipalities fight Massachusetts’ transit-oriented development rezoning plan, officials debate how far to take the policy and where to draw the line. (CommonWealth Beacon)
EQUITY: New York City releases a new environmental equity report finding that almost half of city residents deal with “disproportionate” pollution burdens and symptoms of climate change. (The Guardian)
TRANSIT: Although New York City is implementing congestion pricing, it’s unlikely to happen soon in Washington, D.C., where the city’s mayor still refuses to release a 2019 city study on the matter. (Axios DC)
COMMENTARY:
SOLAR: Texas’ grid operator announces solar supplied more power to the grid in March than coal for the first time, marking an important milestone in the clean energy transition. (Houston Chronicle)
ALSO:
OIL & GAS:
PIPELINES: A Louisiana State University professor develops a method of fiber-optic leak detection that could supplement or replace pressure gauges as a way of rapidly detecting leaks in oil and gas pipelines. (Reveille)
ELECTRIC VEHICLES:
TRANSITION:
GRID:
EMISSIONS: Republican Virginia Gov. Glenn Youngkin makes line-item changes to the state budget passed by Democrats that would mandate state participation in a regional carbon market. (Virginia Business)
UTILITIES:
COMMENTARY:
PIPELINES: The Standing Rock Sioux Tribe prepares a legal argument to shut down the Dakota Access pipeline that claims the operator’s environmental record should prevent it from obtaining a crucial easement. (E&E News)
ALSO: A carbon pipeline developer strikes a deal with a Nebraska environmental group that includes training first responders and donating to local nonprofits. (Nebraska Examiner)
COAL: Ohio clean energy and consumer advocates call on state regulators to force owners of two unprofitable coal plants to return more than $100 million to ratepayers. (WOSU)
GRID:
OIL & GAS: Ohio environmental advocates say the state’s draft study on the effects of opening about 40,000 acres of a national forest to oil and gas development doesn’t fully account for habitat and outdoor recreation losses. (Mahoning Matters)
POWER PLANTS:
SOLAR: Illinois is an early participant in a federal program that uses new software to extend community solar to more low-income subscribers. (PV Magazine)
UTILITIES: Ohio’s consumer advocate says AEP’s recently approved electric security plan lacks transparency and is short on details about how it would benefit ratepayers. (Ohio Capital Journal)
ELECTRIC VEHICLES: Former President Trump uses increasingly violent rhetoric to oppose President Biden’s policies in support of electric vehicles, particularly in battle ground states like Michigan. (NBC News)
EFFICIENCY: A Nebraska agency seeks proposals to launch a weatherization program that helps low-income families invest in energy efficiency. (NTV)
OIL & GAS: The U.S. EPA is reportedly considering tougher emissions rules for new gas power plants ahead of their expected final release this month — a contrast with other Biden administration environmental rules that have generally been weakened after their initial proposal. (Washington Post)
ALSO:
CLEAN ENERGY: Renewable energy generation breaks records across the U.S., including in Texas, where wind energy and solar are toppling coal generation, and New England, which set an emissions-free power generation record in March. (E&E News, subscription; Houston Chronicle, Concord Monitor)
ELECTRIC VEHICLES: The nation’s first fully battery-powered tugboat is set to begin operating from California’s Port of San Diego later this spring. (Canary Media)
PIPELINES:
OFFSHORE WIND: The demise of several Northeast offshore wind projects last year sent Senate Majority Leader Chuck Schumer into a lobbying frenzy that resulted in a modified tax credit to benefit developers and the approval of new projects. (E&E News)
GRID:
COAL: The Army Corps of Engineers says it should be able to open a limited-access channel by the end of the month to access Baltimore’s port, through which a notable chunk of the country’s coal exports pass. (Daily Record)
SOLAR: Indigenous advocates protest a proposed solar development in central Washington state, saying it threatens cultural resources. (High Country News)
COMMENTARY:
SOLAR: Two large solar projects that have come online in South Dakota over the past year signal a new interest in solar for a state where wind energy has dominated renewable energy sources. (South Dakota News Watch)
ALSO: The Ohio Power Siting Board will hold a second public hearing on a large solar project after roughly 800 people packed a theater and public comments ran on for hours. (Knox Pages)
CARBON CAPTURE: The CEO of a multi-state carbon pipeline project maintains that it would be crucial for ethanol producers who could market low-carbon products. (NWestIowa.com)
ELECTRIC VEHICLES:
GRID:
WIND: Three former Minnesota high school students have used their technical training in renewable energy to support the development of an offshore wind project in Massachusetts. (Echo Journal)
RENEWABLES: Wisconsin utilities tout voluntary, subscription-based green pricing programs as a way for customers to support renewable energy investments without onsite installations. (Milwaukee Journal Sentinel)
UTILITIES: Consumer advocates and Indiana utility NIPSCO agree on a rate increase request that’s about 75% of what the utility sought to pay for gas infrastructure investments. (Chicago Tribune)
COMMENTARY: Some Minnesota environmental groups’ newfound opposition to a statewide low-carbon fuel standard raises questions about the future of the state’s ethanol industry, a columnist writes. (Star Tribune)
TRANSPORTATION: While North Carolina has required its power sector to zero out emissions, it has been reluctant to take on reducing dependence on cars, which experts say will be necessary to reach climate goals. (Energy News Network)
ALSO:
SOLAR:
HYDROGEN:
WIND: A 21-year-old Texas wind farm has been rebuilt, enabling it to generate more power with 38 turbines instead of the previous 160. (Electrek)
UTILITIES:
NUCLEAR: A Department of Energy official says despite Plant Vogtle’s delays and cost overruns, the lessons learned from the project could help propel nuclear energy forward. (Grist)
OIL & GAS: Developers of a pipeline to carry natural gas from the Permian Basin to the Gulf Coast are hoping to have it operational by 2028. (S&P Global)
COMMENTARY: A Virginia advocate says lawmakers have ignored “the energy crisis that is hurtling towards us” by failing to regulate data center growth. (Power for the People VA)
CLEAN ENERGY: New York’s governor proposes a new policy that would speed up clean energy project siting by requiring approval within a year of proposal — but some legislators say there needs to be more guardrails to protect labor and farmlands. (NY Focus)
ELECTRIC VEHICLES:
OFFSHORE WIND:
GRID: A new joint venture intends to develop and manage 200 MWs of microgrid projects in New York. (news release)
BUILDINGS: Maryland environmental groups “feel betrayed” over a new budget amendment they say will hurt implementation of clean building provisions of a 2022 climate solutions act. (Maryland Matters)
SOLAR:
FLOODS: Heavy rain in southwest Pennsylvania this week rose river levels in Pittsburgh to the highest point in almost 20 years, flooding parks. (Trib Live)
WORKFORCE: A Massachusetts public high school will receive millions of dollars from the state to fund a clean energy education pilot project for students. (Daily Hampshire Gazette)
OIL & GAS: Arizona residents push back on a proposed 98 MW natural gas peaker plant in the western part of the state, saying it would harm air quality and property values. (Arizona Republic)
ALSO: California regulators reject advocates’ proposal to tighten gas flaring regulations at petroleum refineries and to livestream the burnoffs. (E&E News, subscription)
ELECTRIC VEHICLES:
UTILITIES: A Hawaii lawyer alleges a termite-damaged utility pole sparked last year’s deadly Maui wildfires after it was toppled by high winds. (Honolulu Civil Beat)
CARBON CAPTURE:
BIOFUELS: Oregon advocates push back on a proposal to store biofuels instead of crude oil at a Portland facility, saying the conversion won’t reduce air pollution or safety risks. (Oregonian)
SOLAR: California grid operators predict today’s solar eclipse will diminish solar power output in the state for a short period, but say utility customers will not be affected. (San Diego Union-Tribune)
HYDROPOWER: Hawaii advocates drop a lawsuit seeking to block a proposed hydropower project over potential environmental impacts after developers scale back plans. (Honolulu Civil Beat)
CLEAN ENERGY: New Mexico Gov. Michelle Lujan Grisham says policy decisions have put her state at the “epicenter” of the clean energy transition. (NM Political Report)
WIND:
GRID: An unusually severe wind storm raises wildfire hazard and batters utility equipment in Colorado, leaving more than 150,000 customers without power. (Boulder Reporting Lab)
COMMENTARY: A Utah editorial board says the state’s misguided fossil fuel-friendly policies paved the way for a utility to keep burning coal at the expense of ratepayers and air quality. (Salt Lake Tribune)
CLIMATE: NOAA released a report Friday showing levels of carbon dioxide and methane in the atmosphere reached historic highs last year, with one scientist saying the methane spike in particular “should terrify us.” (Associated Press)
CLEAN ENERGY:
ELECTRIC VEHICLES:
TRANSPORTATION:
SOLAR: Solar generated more electricity than coal in Texas for the first time last month, providing more than 10% of the state’s electricity. (IEEFA)
WIND: Wyoming researchers paint turbine blades black in an experimental effort aimed at reducing bird collisions with wind power facilities. (Wyoming Public Radio)
NUCLEAR: A Department of Energy official says despite Plant Vogtle’s delays and cost overruns, the lessons learned from the project could help propel nuclear energy forward. (Grist)
CARBON CAPTURE: The CEO of a multi-state carbon pipeline project maintains that it would be crucial for ethanol producers who could market low-carbon products. (NWestIowa.com)
MINING: Efforts to develop a lithium mining site in Nevada face a major obstacle: Finding enough water. (Inside Climate News)
COMMENTARY: A climate journalist finds that traveling by train — at least, on America’s outdated diesel-powered ones — can in some cases be worse for the climate than flying. (New York Times)