Full Title: Supporting a Reliable Grid: The Opportunity for Virtual Power Plants in Michigan
Author(s): Avery McEvoy and Matthew Land
Publisher(s): Rocky Mountain Institute
Publication Date: April 6, 2025
Full Text: Download Resource
Description (excerpt):
Michigan has an aging distribution grid with high incidents of blackouts. It also suffers from narrowing capacity availability for resources to meet peak demand. Virtual power plants (VPPs) — aggregations of distributed energy resources (DERs) that can provide utility-scale and utility-grade grid services — can help address those challenges while supporting the state in reaching its ambitious clean energy standard of 80% by 2035 and 100% by 2040.
According to the Department of Energy, VPPs can be configured to provide a range of benefits, including reliability and resilience, affordability, greenhouse gas emissions reductions, resource adequacy, and more.
This brief outlines the ways in which VPPs can support grid reliability, affordability, and decarbonization outcomes, with supporting metrics and case study examples from other states. Michigan utilities, regulators, and legislators have laid the groundwork for fundamental technologies, program structures, and market rules that are part of the foundation for VPPs. This brief concludes with a set of actions that Michigan utilities, regulators, and legislators can take to advance VPPs in the state to support affordable, reliable, decarbonized power for all Michiganders.