The Department of Energy (DOE) recently released the 2025 Virtual Power Plant (VPP) Liftoff Report Update, with contributions from Clean Energy Works. The release of this updated report marks a significant milestone in the effort to scale VPPs across the nation.
VPPs are among the critical solutions to meet the pressing challenges the grid faces today and in the near-term. Nationally, deploying 80-160 gigawatt (GW) of VPP capacity (enough to serve 10-20% of peak load) by 2030 could support projected rapid load growth while reducing overall grid costs and increasing grid resilience. Although the current scale of VPPs has grown to 33 GW across North America, the pace of deployment still needs to accelerate to support projected load growth.
Building on the 2023 VPP Liftoff Report, this update emphasizes over 75 real-world examples and 60+ DOE and industry resources as critical tools for advancing national energy goals and shaping robust policy frameworks for scaling VPPs. Together, these examples highlight actionable pathways to accelerate VPP deployment and address pressing grid needs.
The Growing Challenges of a Strained Electric Grid
Since the release of DOE’s 2023 VPP Liftoff Report, challenges facing the U.S. electric grid have grown more urgent:
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- Rising Demand: Peak electricity demand is projected to grow from 800 GW in 2024 to 900 GW by 2030, driven by energy-intensive data centers, domestic manufacturing, and the electrification of transportation and heating.
- Increasing Costs: Utility investments in transmission and distribution infrastructure grew significantly between 2022 and 2023, with capital costs expected to keep rising to meet demand and replace aging grid assets—putting upward pressure on electricity rates for utility customers.
- Resilience Pressures: A record-breaking 28 extreme weather events in 2023 caused $95 billion in damages, highlighting the need for a grid that can withstand the growing frequency of severe storms, which are responsible for 75-80% of power outages.
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These trends underscore the importance of scalable, cost-effective solutions like VPPs to enhance reliability, control costs, and boost resilience in the face of mounting challenges.
DER Adoption with Equitable Benefits
The DOE’s update leads with a focus on equity, emphasizing distributed energy resources (DERs) adoption as a key opportunity to ensure clean energy access for priority communities and advance an equitable energy transition. VPPs aggregate DERs, such as smart appliances, rooftop solar with batteries, electric vehicles (EVs) and chargers, and commercial and industrial loads, that can balance electricity demand and supply and provide grid services like a traditional power plant.
The report touts Roanoke Cooperative’s Upgrade To $ave program illustrates a great example of how utilities can co-deliver energy efficiency and VPP measures to underserved communities, providing holistic benefits. By integrating energy efficiency upgrades (like weatherization and HVAC systems) with VPP and DER technologies, including smart thermostats and water heater control switches, Roanoke was able to broaden access to clean energy technologies to its member-owners, delivering tangible benefits to participants (like bill savings and increased comfort) and the utility. By harnessing the grid value of these measures, the utility provided direct installation of —at no cost to participants—and ongoing, monthly compensation for staying enrolled in its demand reponse program.
Shaping the VPP Future Together
The Clean Energy Works team is honored to have contributed to the DOE’s report, including sections on scaling DERs to deliver equitable benefits and facilitating development of the Roanoke Cooperative case study. Our input on inclusive utility investments, community-driven program models, and scalable financial solutions reflects years of collaborative effort with industry and government leaders. This milestone highlights the power of partnership, as none of this progress would have been possible without the dedication of community organizations, utilities, and key stakeholders working together to advance inclusive policies. By addressing persistent barriers to access, these collective efforts are helping ensure that clean energy benefits reach all communities equitably while driving the adoption of DERs and VPPs at scale.
If you’re interested in learning more about VPPs, DERs, and inclusive utility investments, reach out to our team:
Looking Ahead
The 2025 VPP Liftoff Report Update provides a strategic roadmap for policymakers and stakeholders to accelerate VPP deployment and meet critical grid needs. By implementing the proven solutions featured in the report, stakeholders nationwide can advance clean energy adoption while prioritizing equity.
As we continue to engage with DOE, utilities, and community partners, we’re reminded of the power of collaboration and long-term relationship building. Together, we can drive meaningful change and ensure that the benefits of a clean energy future leave no one behind.
