Energy Policy Design Institute Launches Initiative to Advance Virtual Power Plant Adoption

Recognizing that virtual power plants (VPPs) remain underutilized despite growing interest and escalating energy affordability challenges, the Energy Policy Design Institute (EPDI) has launched the VPP Convergence Project, supported by an advisory group of policy experts and industry leaders.

EPDI, a Denver-based nonprofit focused on accelerating the energy transition through better, faster policymaking, aims to address barriers that have slowed VPP deployment. Across the U.S., utilities and regulators are facing mounting pressure to meet new energy demands—particularly from large load customers such as data centers—while keeping costs manageable for consumers.

Advocates say VPPs offer one of the fastest and most cost-effective ways to expand energy supply and capacity. However, according to EPDI Executive Director Ted Ko, enthusiasm has sometimes outpaced policy clarity. “The buzz around VPPs is getting louder, but in the policy arena, it can sound like a tangle of competing messages,” Ko said. “VPPs have much to offer, but they can be over-hyped in ways that confuse regulators, resulting in skeptical staff and delays to the policy changes required to make VPPs work.”

Ko said the VPP Convergence Project will focus on clearly articulating the VPP value proposition, developing policy frameworks, and providing tools to help regulators make confident, evidence-based decisions.

Former U.S. Department of Energy Loan Programs Office Director Jigar Shah, who serves as the project’s honorary chair, emphasized the need for collaboration across the energy technology sector.

“Energy technology companies are great innovators and competitors, but they need to come together to score big policy wins,” Shah said. “The VPP Convergence Project offers a great opportunity to build credibility and clear, consistent communication with regulators, so utilities and consumers can fully benefit from VPPs.”

The project’s steering committee includes Natalie Mims Frick, Lakin Garth (SEPA), Jeff Loiter (NARUC), Angela Long (Rockress Consulting), Lauren Shwisberg (RMI/VP3), and Alison Bates Wannop. Industry advisors represent distributed energy resource (DER) companies and associations such as EnergyHub, Tesla, Sunrun, Leap, Voltus, Sparkfund, UtilityAPI, Mission:data Coalition, Solar United Neighbors, Derapi, and Lightsmith Energy.

Kira Lawrence, senior policy advisor with the New Jersey Board of Public Utilities, said VPPs could play a pivotal role in managing costs and improving grid efficiency. “As we continue to work to reduce costs for ratepayers, VPPs, which have proven successful at delivering benefits to ratepayers throughout the country, are a key tool that we can employ to help us do just that,” Lawrence said. “We’re excited to participate in and look forward to the guidance and tools that emerge from the VPP Convergence Project to help make VPPs a reality in New Jersey.”

The VPP Convergence Project aims to synthesize best practices, create actionable policy tools, and align stakeholders around shared priorities.

More information is available at epdiusa.org/projects/vpp-convergence-project.