Research The Next Generation of Flexible Demand Utilities and regulators can implement broad, flexible DER strategies, with both direct and aggregator enrollment, to enable VPPs to meet increasing grid needs. In 2024, a total of 105 states and investor-owned utilities (IOUs) took action related to VPPs across 38 states and the District of Columbia. During the first half of 2025, these actions continued apace, with notable developments in states facing substantial load growth from data centers. Virginia’s HB2346 requires Dominion Energy to file a VPP pilot program of up to 450 MW of DERs across multiple regions by December 1, 2025. HB2346 represents a significant development toward scaling VPPs to deliver responsive, dispatchable capacity that complements traditional generation. This report serves as a guide for utilities, regulators, and other energy stakeholders in understanding how the planning and deployment of VPPs can evolve amid shifting regulatory conditions. Using Virginia HB2346 as an example, it highlights how new laws are reshaping the regulatory landscape for VPPs. This case study explores how proactive regulatory planning for VPPs integrates solar PV, battery storage, smart thermostats, EV charging, and other flexible loads. These resources can cost-effectively manage rising electricity demand, enhance grid reliability, and support decarbonization. The report distills key insights from HB2346 and situates them within a broader context of utility innovation, state-level policy priorities, and evolving program design. Authors: Ashley Lynn Qua, Senior Manager, Transportation Electrification Carina Wallack, Senior Manager, Content Strategy Elijah Perry, Manager, Energy Equity & Inclusion Lakin Garth, Senior Director, Grid Strategy Mary Palmer, Director, Energy Equity & Inclusion Solange Camacho, Analyst, Research & Industry Strategy Weston Dengler, Senior Analyst, Research & Industry Strategy The Next Generation of Flexible Demand Name* First Last Email* Company*State (Optional)What state do you live in?AlabamaAlaskaAmerican SamoaArizonaArkansasArmed Forces AmericasArmed Forces EuropeArmed Forces PacificCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaNorthern Mariana IslandsOhioOklahomaOregonPennsylvaniaPuerto RicoRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUS Virgin IslandsUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingTitle* Sign me up to receive updates on ?