50 States of Virtual Power Plants and Supporting Distributed Energy Resources: 2024 State Policy Snapshot
Research

50 States of Virtual Power Plants and Supporting Distributed Energy Resources: 2024 State Policy Snapshot

  • This report tracks 105 state and IOU actions related to VPPs and supporting DERs across 37 states and the District of Columbia (D.C.) in 2024.
  • Utilities are driving activity and expanding programs.
  • State policymakers and regulators are developing statewide VPP frameworks.
  • States are initiating VPP investigations and considering net metering program interactions.

While DERs and the concept of DER aggregation have been part of the electric utility landscape for years, recent technological advancements amidst forecasted increases in electricity demand have elevated their role in the clean energy transition.

Compared with utility-scale renewables such as solar and wind, these resources do not require the investment and build-out of additional transmission capacity and may not require significant distribution system investments. Furthermore, DER interconnection to the distribution grid is also typically less time-consuming and less expensive than interconnecting larger, utility-scale renewables at the transmission level while also enhancing reliability, cost savings, dispatchability, and flexibility.

This report takes a deep dive into state-level VPP and supporting DERs policy actions in 2024 and provides an outlook of expected 2025 activity. We created this report to help our audience understand the breadth and scope of policy actions related to VPPs and DER aggregations in the United States. We present:

  • Notable 2024 VPP and supporting DER state-level policy activity
  • Top VPP and supporting DER trends
  • Anticipated VPP and supporting DER policy activity in 2025
  • Detailed state-by-state actions in 2024

SEPA partnered with the North Carolina Clean Energy Technology Center to develop a summary of state-level policy actions supporting VPPs and DERs in 2024 and an outlook of expected 2025 actions. Download the report to learn more.

Authors:

  • Lakin Garth, Director, Research & Industry Strategy, Smart Electric Power Alliance
  • Janne Knieke, Analyst, Research & Industry Strategy, Smart Electric Power Alliance

With Contributions from Project Partner:

  • Autumn Proudlove, Managing Director – Policy & Markets, NC Clean Energy Technology Center

50 States of Virtual Power Plants and Supporting Distributed Energy Resources: 2024 State Policy Snapshot