Senator Ghazala Hashmi (D-Richmond) hailed the signing of a new energy law on May 2, calling it a “crucial step forward” in advancing Virginia’s energy resilience and affordability.
The legislation, known as the Community Energy Act, was introduced by Hashmi in the Senate and carried in the House by Delegate Phil Hernandez (D-Norfolk).
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Signed into law by Governor Glenn Youngkin, the bipartisan measure establishes one of the largest virtual power plant (VPP) pilot program—a 450-megawatt initiative that will integrate distributed energy resources such as rooftop solar, battery storage, electric vehicles, and smart thermostats to support the grid and reduce costs.
The Community Energy Act (SB1100/HB2346) has been signed into law & will create the largest virtual power plant pilot program in the nation. This technology will benefit rate payers, while enhancing Virginia’s energy resilience & reliability. https://t.co/zmRgyqchyL pic.twitter.com/wikv134OTf
— Senator Hashmi (@SenatorHashmi) May 2, 2025
"In order to meet Virginia’s growing residential and commercial energy demand, we need innovative solutions such as virtual power plants and proactive investments," said Senator Hashmi. "As a Commonwealth, we are taking a crucial step forward with this bipartisan legislation that will benefit ratepayers while simultaneously enhancing Virginia’s energy resilience and reliability."
Delegate Hernandez highlighted the financial benefits for Virginians, stating, "This is a major win for families across Virginia who need lower energy bills. In fact, the legislation that was signed into law today creates the largest pilot program of its kind in the nation. It will help meet our growing demand for power and save families money."
The pilot program is scheduled to commence by December 2025, with utilities submitting VPP tariff proposals by November 2026. The State Corporation Commission will evaluate the program's effectiveness and consider establishing a permanent VPP framework by 2028.
Josephus Allmond, Staff Attorney with the Southern Environmental Law Center, praised the initiative stating, "At a time of increasing demand, this bill will help add immediate clean capacity to the grid, all while lowering bills for participating customers. This is just the kind of innovative, forward-thinking policy that Virginia needs."
The Community Energy Act is a component of the broader Community Access to Renewable Energy (CARE) package, which includes additional legislation to expand distributed generation and community solar projects across Virginia. These measures collectively aim to reduce reliance on fossil fuels, lower energy costs, and create clean energy jobs throughout the Commonwealth.
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