Virginia Takes First Steps in Establishing First US Virtual Power Plant

Virginia lawmakers recently took steps to create the first virtual power plant in the US, with a proposed set to be filed Dec. 1, 2025. 

Virginia is launching a major utility-scale virtual power plant (VPP) pilot led by Dominion Energy, marking one of the first efforts of its kind in the U.S. The initiative, signed into law in May 2025, mandates a 450 MW VPP pilot that incorporates residential batteries and electric school buses. This approach aims to enhance grid reliability, reduce emissions, and utilize distributed energy resources more efficiently. The pilot must be filed by December 2025 and evaluated by 2028 for possible long-term deployment.

For background, VPPs are nota single structure that generate power, but instead an interconnected network of different generation, transmission, and storage facilities. According to Reuters,

VPPs are networks of small energy-producing or storage devices, like solar panels and batteries, that are pooled together to serve the electricity grid.
With their participants’ approval, their energy can be tapped by utilities during times of high demand, or can be reserved for later use. Owners of the devices are compensated for their participation.
Virginia’s VPP pilot could serve as a future model for Maryland as both states navigate a fast-evolving energy landscape. Coming out of Maryland’s 2025 “Session of Energy”—which saw sweeping legislation focused on clean energy and grid resilience—Virginia’s VPP initiative offers valuable insight. Dominion Energy’s pilot may shape how Maryland builds its own distributed energy programs.