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HB 562

Electric cooperatives; authorized to establish and implement a virtual power plant program.

2026 Regular Session Introduced by David Reid

Virginia bill authorizes electric cooperatives to establish virtual power plant programs aggregating distributed energy resources for enhanced grid flexibility and renewable integration.

Approved by Governor-Chapter 44 (effective 7/1/2026)
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Bill Summary · HB 562

Legislative bill overview

HB 562 authorizes electric cooperatives in Virginia to establish and operate virtual power plant (VPP) programs. Virtual power plants aggregate distributed energy resources—such as rooftop solar, batteries, and flexible loads—to function as a coordinated power source that can respond to grid demands. This legislative action removes barriers allowing cooperatives to develop and manage these systems.

Why is this important

Virtual power plants enhance grid flexibility, improve renewable energy integration, and can reduce electricity costs by optimizing when stored energy is used or sold back to the grid. For rural and cooperative-served communities, VPPs offer pathways to modernize aging infrastructure while maintaining local control over energy resources—a key cooperative principle.

Potential points of contention

  • Regulatory clarity: Unclear whether existing state utility regulations adequately cover VPP operations, potentially creating compliance ambiguities or requiring future regulatory guidance
  • Cost allocation: Questions about how infrastructure and management costs are distributed among cooperative members, and whether non-participating members subsidize participating ones
  • Grid coordination: Potential friction over how cooperatives' VPP operations interface with larger grid operators and independent system operators (ISOs) regarding reliability standards and real-time dispatch authority

Compiled from official sources — confirm details with the bill’s official record.

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