Smart Regulatory Frameworks to Accelerate Smart Energy Solutions: Policies to Scale VPPs

The U.S. electricity grid has reached an inflection point. As more states and utilities set climate targets and the energy landscape evolves away from fossil fuel sources toward renewables, it will be even more important—and challenging—to deliver affordable and reliable electricity across all customer classes.

Distributed energy resources (DERs) are shifting the way we generate, distribute, and consume electrical power—and we need new ways to harness DERs to enhance grid resiliency and empower energy consumers. Virtual power plants (VPPs) have emerged as the most promising solution to this complex challenge, acting as the primary vehicle for aggregating and optimizing diverse DERs.

Download our 2023 policy brief to explore four key recommendations to accelerate VPP deployment in the U.S.

• Compensate VPPs appropriately.
• Incorporate VPPs into utility planning processes.
• Promote open standards and open access to APIs.
• Improve integration of VPPs into wholesale markets.