The 50 States of Grid Modernization Q2 2025: States Pursue Rules for Microgrid Deployment and Storage Procurement in Q2 2025
Raleigh, NC – (July 23, 2025) The NC Clean Energy Technology Center (NCCETC) released its Q2 2025 edition of The 50 States of Grid Modernization. The quarterly series provides insights on state regulatory and legislative discussions and actions on grid modernization, utility business model and rate reforms, energy storage, microgrids, and demand response.
The report finds that 48 states, as well as the District of Columbia and Puerto Rico, took actions related to grid modernization during Q2 2025 (see figure below), with the greatest number of actions relating to energy storage deployment (77), overall utility business model reforms (37), smart grid technology deployment (35), interconnection rules (34), and performance-based regulation (28).
A total of 468 grid modernization actions were taken during Q2 2025, in addition to 290 introduced bills. Texas, California, Colorado, Connecticut, Massachusetts, and Michigan saw the most action during the quarter, followed by New York, Maine, and New Mexico.
Q2 2025 Legislative and Regulatory Action on Grid Modernization
The report discusses three trends in grid modernization actions taken in Q2 2025: (1) states mandating procurement of energy storage, (2) lawmakers implementing rules governing microgrid deployment, and (3) states integrating technology requirements into distribution and transmission planning.
“In Q2 2025, several states took steps toward conducting energy storage procurements,” noted David Sarkisian, Principal Policy Analyst at NCCETC, “These actions, normally prompted by state legislation, were often the first actions in service of achieving state energy targets.”
The report notes the top five policy developments of Q2 2025 were:
- Virginia lawmakers mandating a virtual power plant proposal;
- New Jersey regulators launching new energy storage incentive program;
- State agencies in Maine and Virginia releasing performance-based regulation studies;
- Connecticut and Maryland regulators proposing distribution system planning rules; and
- The Hawaii Public Utilities Commission declining to pursue implementation of its advanced rate design.
“This quarter, there was widespread effort to apply technologies to overcome grid issues,” said Vincent Potter, Project Manager at NCCETC. “Policymakers ordered utilities to integrate – or at least consider – alternative and emerging technologies like energy storage, grid-enhancing technologies, and non-wires alternatives when planning for their transmission and distribution systems.”
View the 50 States of Grid Modernization Q2 2025 Quarterly Report Executive Summary
View and Purchase the 50 States of Grid Modernization Q1 2025 Quarterly Report
ABOUT THE NC CLEAN ENERGY TECHNOLOGY CENTER
The NC Clean Energy Technology Center, as part of the College of Engineering at North Carolina State University, advances a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies, practices and policies. It serves as a resource for innovative, sustainable energy technologies through technology demonstration, technical assistance, outreach and training. For more information about the Center, visit: http://www.nccleantech.
Media Contact: Shannon Helm, NCCETC, shannon_helm@ncsu.edu