Program Design for Battery-Based Virtual Power Plants

In just ten years, battery-based virtual power plants (BVPPs) have become a fast-growing new model for adding distributed electrical capacity and supporting grid services in the United States. Adding to the momentum is the projected rapid growth of peak electricity demand in many areas of the country over the coming decade, which will likely accelerate the scale-up of BVPPs in these areas. 

BVPP programs are currently available in at least 26 states, plus Puerto Rico. Many more are advancing through regulatory dockets and will become active over the coming year.  

Although still in the formative stages, the BVPP model has matured sufficiently that common practices have emerged and some best practices can be identified.  

This issue brief by the Clean Energy States Alliance (CESA) covers BVPP program design. The brief surveys and summarizes the characteristics of existing BVPPs, discusses design elements such as battery ownership and compensation mechanisms, and provides a high-level overview of the current state of BVPPs in the United States

CESA has also published a table outlining all 48 currently active BVPP programs in the US. The table includes details on program incentives, battery ownership, eligible technologies, equity considerations, and more. Explore the table here.  

This work is supported by the U.S. Department of Energy through the National Community Solar Partnership+ (NCSP+), in partnership with Lawrence Berkeley National Laboratory. In addition to resource creation under NCSP+, CESA also facilitates working groups on:  

• Solar+storage monetization 
• Energy affordability
• Community solar 

Working group participation is open to state agency offices, quasi-public agencies created through state legislation or executive order, and nonprofit administrators of statewide energy programs. Learn more about these working groups at CESA’s NCSP+ webpage.