CESA Report Outlines Framework for Scaling Virtual Power Plants
A new report from the Clean Energy States Alliance highlights communication standards and regulatory clarity to expand virtual power plants.
- By Jesse Jacobs
- September 24, 2026
A report authored by Adam Warren for the Clean Energy States Alliance focuses on how virtual power plants operate and what state agencies can do to accelerate their deployment. The publication, titled The ABCs of VPPs: An Introduction to Virtual Power Plants, provides a guide for regulators, utilities and policymakers navigating grid modernization.
Virtual power plants pool smaller, distributed energy resources—such as residential battery storage, rooftop solar arrays, smart thermostats and electric vehicle chargers—to function like a single, traditional power plant. During periods of peak demand, grid operators can draw electricity from these bundled assets or dynamically reduce consumption across enrolled devices, lessening stress on regional transmission systems.
According to the report, expanding virtual power plants across state markets depends heavily on trusted communication protocols among smart devices, energy aggregators, utilities and market operators. Establishing standardized communication frameworks reduces software integration costs and makes programs easier to repeat across different service territories.
The analysis outlines key operational, technical and governance layers necessary for program design. It urges state officials to focus on customer protection rules, performance metrics, cybersecurity measures, data privacy and transparent compensation frameworks.
The report also emphasizes the role of equitable access in program design, noting that embedding equity considerations early helps build public trust and broader adoption among diverse ratepayer demographics.
The research was produced under the VPP Acceleration Initiative, a collaborative effort led by the Clean Energy States Alliance, the Clean Energy Group and the World Resources Institute to help state and local institutions deploy grid-edge technologies.
About the Author
Jesse Jacobs is Assistant Editor of EPOnline.com.
