The Michigan Senate Energy and Environment Committee advanced two bills for establishing and regulating virtual power plants (VPPs) in the state. VPPs use networks of distributed energy resources, such as solar, energy storage and EV chargers, to supply power to the grid alongside or in lieu of larger power plants.
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Senate Bills 731 and 732 were introduced in late December by Sen. Sue Shink (D) and Jeff Irwin (D) as upgrades to grid reliability and infrastructure through VPP development.
“We can’t meet our state’s future energy needs with 20th-century infrastructure,” Shink said in a press release. “This legislation will help us create the flexibility and reliability to rise to modern energy challenges.”
If passed, SBs 731 and 732 would require the Michigan Public Service Commission to create a VPP program that would compensate households for contributing energy to reduce grid demands. This can reduce a homeowner’s utility bills while increasing grid resilience by curbing blackouts.
“Right now, more than ever, families deserve solutions that help reduce their energy bills and give them peace of mind during extreme weather events,” said Patty O’Keefe, Vote Solar’s Midwest regional director. “These bills are doing exactly that. By using virtual power plants the state is helping build a modern energy system that puts communities first and makes use of the clean energy resources already available.”
