**Northeast USA**: As the region embraces an electrified power grid, experts at the RE+ Northeast 2025 conference emphasised the importance of virtual power plants (VPPs) in managing energy demands and fostering customer engagement to enhance renewable energy integration and grid stability.
As the Northeast intensifies its shift towards a decarbonised and electrified grid, virtual power plants (VPPs) are being recognised as a vital resource for managing the inherent challenges. Recently, the RE+ Northeast 2025 conference hosted a panel titled “VPPs: Maximising Their Value Through Smart Regulatory Choices”, where experts discussed strategic initiatives to enhance VPP development and rate design. The consensus among panelists was that a practical, engaging approach involving customers would be essential for fostering a deeper integration of renewable energy and demand flexibility.
The panel featured industry professionals including Thad Culley, director of public policy at Sunrun; Rachel Bryant, senior director of regulatory and policy business development at GridX; Kat Burnham, senior principal at Advanced Energy United; and Tilak Subrahmanian, vice president of energy efficiency and electric mobility at Eversource. The discussion was moderated by Lakin Garth, director of emerging technology for the Smart Electric Power Alliance (SEPA).
Subrahmanian asserted, “As we face this massive load growth from electrification, VPPs will be critical in managing the grid of the future.” He stressed the necessity of collaborative efforts to establish suitable regulatory frameworks and technological foundations to support VPP implementation. Burnham concurred, highlighting that VPPs have shown considerable promise in handling peak demand—a significant factor in energy costs and grid stability in the region. “VPPs have proven very successful at addressing peak demand, which is a huge part of our bills and grid stress in the Northeast,” Burnham remarked. She added that their real potential emerges in providing various grid services, including capacity and energy management.
The panel also referred to the success of a pilot enrolment initiative designed by GridX for a utility in the Northeast. Bryant remarked, “By doubling your enrollment, you see a lot more peak load reduction,” indicating that effective rate design combined with customer education could produce notable reductions in peak load. She explained, “The marketing of everything is really important in how we pitch VPPs,” while acknowledging potential extra costs during peak hours, she suggested that such pricing could still be offset by discount pricing during the remaining hours of the day.
Burnham underscored the importance of a regulatory climate that inspires predictability and confidence among stakeholders. Citing the Connected Solutions programme, she noted, “Successful VPP programs are those that empower customers, make participation easy, and provide clear financial incentives.” Culley shared that Connected Solutions has already attracted around 70,000 residential customers, along with 350 commercial and industrial customers across 800 locations in Massachusetts and New York.
The participation rates in these programmes were noted as strong, although Burnham pointed out that millions of potential participants still exist in the states. She advocated for measures that demonstrate the financial benefits of VPP involvement, stating, “That doesn’t usually happen with utilities, and so this is a way to shift the narrative.” Furthermore, she suggested that the integration of various devices—ranging from electric vehicles to smart thermostats—could support the successful expansion of VPPs.
Addressing customer perceptions of new rate structures, Bryant highlighted a common disconnect and the importance of clarity regarding the value these changes could bring. “Making energy and rate structures ‘fun again’ through intuitive tools is key to driving customer participation,” she said. Moreover, Culley encouraged an uncomplicated approach for jurisdictions considering VPP implementation, positing that immediate resource deployment can establish a valuable foundation for future sophisticated applications.
Sunrun’s involvement in VPPs includes a recent collaboration with Ford, enabling the use of customer-owned electric F-150 Lightning trucks as mobile power sources during peak periods. Culley noted that one customer earned $1,700 last summer from sharing stored energy during these times.
Overall, the panel discussion provided insights into the rapidly changing landscape of VPPs in the Northeast, emphasising that while their current impact on peak demand is significant, their broader potential will hinge on effective collaboration among utilities, regulators, and third-party providers. Despite the positive outlook, Burnham acknowledged that considerable efforts are still required to educate customers and foster a forward-thinking regulatory environment. “Policy work is a team sport, and so a lot of collaboration, working with the state agencies and working with industry directly to make sure that codes are forward-thinking and proactive,” she noted, emphasising the need for a concerted educational approach not only for consumers but also within the industry itself.
Source: Noah Wire Services
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