The Michigan Senate Energy and Environment Committee has introduced two bills to establish and regulate virtual power plants (VPPs) in the state. VPPs use networks of distributed energy resources, such as solar, energy storage and EV chargers, to deliver power to the grid in addition to or in place of larger power plants.
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Senate Bills 731 and 732 were introduced in late December by Senators Sue Shink (D) and Jeff Irwin (D) as upgrades to electric grid reliability and infrastructure through VPP development.
“We cannot meet our state’s future energy needs with 20th century infrastructure,” Shink said in an interview press release. “This legislation will help us create the flexibility and reliability to meet today’s energy challenges.”
If SBs 731 and 732 are passed, the Michigan Public Service Commission would be required to establish a VPP program that would compensate households for their energy contributions to reduce demand on the electric grid. This can reduce a homeowner’s energy bills while increasing the resiliency of the electrical grid by combating power outages.
“Right now, more than ever, families deserve solutions that help lower their energy bills and give them peace of mind during extreme weather events,” said Patty O’Keefe, Vote for solar energy‘s Midwest Regional Director. “These bills do just that. By using virtual power plants, the state is helping build a modern energy system that puts communities first and uses the clean energy sources already available.”
