Pennsylvania Lawmakers Introduce Virtual Power Plants Legislation

Virtual power plants would offer a cost-effective alternative to peaker plants

HARRISBURG, PA –  Pennsylvania lawmakers today introduced legislation to unlock virtual power plants (VPPs) — a proven way to keep the grid reliable while reducing costs for families and businesses.

The legislation, sponsored by Representative Nate Davidson, would require electric utilities to establish a virtual power plant program by coordinating energy resources already located in homes and businesses across the Commonwealth. Virtual power plants offer a cost-effective alternative to expensive peaker plants, helping utilities meet peak demand while keeping costs down.

“We’ve seen states like Virginia move forward with virtual power plants in a bipartisan way because they work. They lower costs, strengthen reliability, and make smarter use of energy resources we already have,” said Representative Nate Davidson. “While we look to onboard additional generating capacity tomorrow, Pennsylvania should not leave this affordable, commonsense solution on the table today.”

“Affordability concerns are paramount in Pennsylvania right now, especially in the wake of the recent winter storm. The legislation equips utilities with more tools to manage grid challenges while delivering real, cost-saving benefits to ratepayers, oftentimes more quickly than the alternative,” said Chris D’Agostino, Pennsylvania Policy Lead at Advanced Energy United.

The bill now moves to the House Energy Committee.