Michigan Senate Advances Virtual Power Plant Legislation
The Energy and Environment Committee of the Michigan Senate moved forward with two bills that would set up and regulate virtual power plants (VPPs) in the state. Instead of or along with bigger power plants, VPPs use networks of scattered energy resources like solar panels, energy storage, and EV chargers to send power to the grid.
Senate Bills 731 and 732
At the end of December, Sen. Sue Shink (D) and Jeff Irwin (D) proposed Senate Bills 731 and 732. They aim to improve grid stability and infrastructure through VPP growth.
Shink said in a news statement,
“We can’t meet our state’s future energy needs with grids from the 20th century. This law will help us build the adaptability and dependability we need to meet the energy challenges of today.”
Financial Incentives and Grid Reliability
If SBs 731 and 732 are passed, they would require the Michigan Public Service Commission to create a VPP program that would compensate residents for reducing their energy use on the grid. This can lower a person’s energy costs and make the grid more reliable by preventing blackouts.
President of Vote Solar in the Midwest, Patty O’Keefe, said,
“Families deserve solutions that help them save money on their energy bills and give them peace of mind during extreme weather events right now, more than ever. That’s exactly what these bills do. The government is trying to build a new energy system that puts communities first and uses the clean energy sources that are already out there by using virtual power plants.”
