State passes major new legislation set to reshape power access for half its population: ‘Ensures the best use of … technologies’

March 30, 2025

In February, Virginia lawmakers passed legislation to triple the amount of energy storage capacity of the state’s two public utility companies, Dominion Energy and Appalachian Power, which will bring down energy costs and help decarbonize the grid. 

Energy-Storage.News reported that the new ruling would increase targets set by the Virginia Clean Economy Act for Dominion and Appalachian Power from a combined 3,100 megawatts to a whopping 10,000 MW.

The Virginia Mercury explained that the VCEA, which was passed in 2020, called for public utilities to increase capacity to store extra energy produced from clean sources, such as solar and wind, for future use. 

The bill also required Dominion to generate electricity from carbon-neutral sources by 2045, and Appalachian Power would have until 2050 to comply. Del. Richard Sullivan, who proposed the bill, said ramping up energy storage would lower residents’ electric bills and ensure grid stability, especially in unpredictable weather. 

“This will position the commonwealth as a real national leader in developing energy storage … reduces the need to develop peaker plants, and ensures the best use of renewable technologies,” Sullivan said, per The Mercury.

The Mercury reported that Dominion is ahead of its year-end goal to add 250 MW of storage capacity to the grid and has petitioned the State Corporation Commission for approval to bring approximately 557 MW online. Some of the battery energy storage is already operational, and the utility provider is piloting three long-duration storage projects.

Dominion forecasts that energy costs for residents may rise by 50% by 2039, so adding more capacity is crucial to ensure customers have access to affordable, reliable energy. According to Inside Climate News, the​​ VCEA requires Virginia utilities to expand renewable energy projects — including solar and onshore wind —  by 16,100 MW, which will bring plenty of nonpolluting electricity online to be dispatched during peak demand. 

These energy projects will benefit residents by lowering energy costs and ensuring the lights stay on in stormy weather. They also help the planet by reducing the amount of planet-warming gases created in electricity production.

Solar energy development has brought over 1 million well-paying jobs to rural Virginia, which was previously heavily reliant on coal. Community solar programs are also taking off across the state, proving that Virginia is well on its way to a more sustainable future.

“We must increase storage development so that renewable energy produced at times it may not be needed can be stored to be put on the grid at the most useful time,” Sullivan said. “Investments in storage today will pay large dividends for ratepayers and grid stability for decades to come.”

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