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Utility Diveabout 1 month ago

Competitive markets are best for virtual power plants, consumers

Key Takeaway

Competitive markets are crucial for unlocking the full potential of virtual power plants and decentralized energy resources, preventing utilities from stifling private innovation and consumer benefits.

AI Summary

  • Utilities are likely to prioritize their owned infrastructure over the rapid expansion of private-sector virtual power plants (VPPs) and decentralized energy resources (DERs) like rooftop solar.
  • The article advocates for policy and regulatory changes that enable robust private-sector VPP participation in competitive energy markets.
  • For developers, this highlights the critical need for fair market access and compensation mechanisms for VPPs; for large loads, it underscores the importance of policies that foster diverse and competitive energy supply options.

Topics

capacity-marketfinancinginterconnectpolicysolarstorage

Article Content

If allowed, utilities will prioritize infrastructure they own over rapid expansion of rooftop solar and other decentralized energy resources, writes Shannon Anderson of Solar United Neighbors, who argues for enabling private-sector VPP participation.