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Bill

HB 2346

Virtual power plant pilot program; each Phase II Utility shall petition SCC for approval to conduct.

2025 Regular Session Introduced by Elizabeth Bennett-Parker and 10 co-sponsors

Virginia requires major utilities to seek state approval for virtual power plant pilot programs aggregating distributed renewable energy resources to strengthen grid reliability.

Acts of Assembly Chapter text (CHAP0709)
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Bill Summary · HB 2346

Legislative bill overview

HB 2346 requires Virginia's Phase II utilities (major electric providers) to petition the State Corporation Commission for approval to operate virtual power plant (VPP) pilot programs. Virtual power plants aggregate distributed energy resources like rooftop solar, batteries, and smart devices to function as coordinated power generation units. The bill became effective July 1, 2025, after the Governor's initial veto was overridden by the House.

Why is this important

Virtual power plants can reduce strain on the electrical grid during peak demand, lower electricity costs, and integrate renewable energy more efficiently into Virginia's power system. This pilot program allows utilities to test VPP technology at scale while the state evaluates its effectiveness and develops regulatory frameworks. The technology is increasingly seen as critical infrastructure modernization as Virginia transitions its energy portfolio.

Potential points of contention

  • Utility resistance: The House vote (85-10 against the Governor's veto recommendation) suggests significant legislative support, but utilities may resist pilot requirements due to implementation costs and operational complexity
  • Consumer participation incentives: The bill's success depends on customers enrolling distributed energy resources; unclear compensation or incentive structures could limit participation rates
  • Regulatory uncertainty: The SCC approval process lacks defined criteria for what constitutes a successful pilot, potentially creating disputes over program evaluation and mandatory expansion

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

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