Raleigh, N.C. and Washington, D.C. (January 29, 2026) – A new report published today by the NC Clean Energy Technology Center (NCCETC) and the Smart Electric Power Alliance (SEPA) provides insights into scores of state-level regulatory and legislative actions in 2025 related to virtual power plants (VPPs) and distributed energy resource (DER) aggregation.

Amid projected strong growth in U.S. electricity demand, states and utilities are increasingly exploring – and in many cases, prioritizing and utilizing – VPPs as a punctual, versatile solution to meet this challenge. 50 States of Virtual Power Plants and Supporting Distributed Energy Resources: 2025 State Policy Snapshot is designed to help electric utilities, industry partners, regulators, and legislators understand the scope, volume, evolution, and trajectory of VPP policy and program in the United States.

In 2025, 35 states and the District of Columbia advanced policies and regulatory actions related to VPPs and DER aggregation. States and utilities took a total of 106 such actions, with the majority targeting formal VPP programs, demand response programs, and/or active managed charging programs for electric vehicles.

 

2025 State and Utility Actions Addressing VPPs

 

Significant 2025 developments detailed in the report include:

• Arizona regulators approved Arizona Public Service’s new Bring Your Own Device Battery pilot.
• Colorado regulators approved Xcel Energy’s Aggregator VPP program.
• Connecticut regulators adopted an alternative performance-based incentive model for the state’s Energy Storage Solutions program.
• In Delaware, Delmarva Power proposed an Affordability and Load Flexibility Portfolio.
• Georgia regulators approved Georgia Power’s new customer-side solar-plus-storage pilot.
• Illinois lawmakers passed the Clean and Reliable Grid Affordability Act (subsequently enacted), including directives to develop new VPP programs.
• In Louisiana and New Orleans, Entergy proposed new demand response and battery storage programs.
• Maryland utilities proposed their DRIVE Act VPP programs.
• In Minnesota, Xcel Energy proposed its Capacity*Connect program.
• In Virginia, Dominion Energy proposed a new VPP pilot, as required by a 2025 law.

“We continued to see both state and utility leadership on VPP program development in 2025, with new states enacting VPP legislation and utilities filing major program proposals,” said Autumn Proudlove, Managing Director – Policy & Markets at NCCETC. “Of note this year were efforts to take a more holistic approach to DER aggregation, utilizing portfolios of programs and expanding technologies eligible for participation.”

The report also highlights four primary trends related to VPP actions, based on developments in 2025:

• The development of utility portfolios of demand-flexibility programs;
• The expansion of eligible technologies beyond battery storage;
• A continued focus on the use of pilot programs; and
• The use of DERMS to support VPP programs.

“Utilities and states tested and explored new approaches to VPPs in 2025,” said Rusty Haynes, Senior Manager, Research and Industry Strategy at SEPA. “By analyzing state regulatory and legislative developments, we spotlight where policy is backing scalable DER aggregation, giving stakeholders across the energy landscape a clear view of how VPPs can meet surging energy demand.”

 

View the 50 States of Power Plants and Supporting Distributed Energy Resources: 2025 State Policy Snapshot. 

 

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 www.nccleantech.ncsu.edu.

 

ABOUT THE SMART ELECTRIC POWER ALLIANCE

The Smart Electric Power Alliance (SEPA), a 501(c)(3) organization with over 1,000 members, accelerates the transition to a clean, affordable, and resilient electricity system for all. SEPA engages with its diverse membership—including utilities, policymakers, regulators, and technology companies—through education, collaboration, convening, and applied research to advance innovative solutions. For more information, visit www.sepapower.org.

MEDIA CONTACT: Shannon Helm, NCCETC, shannon_helm@ncsu.edu