Relying on home batteries and smart appliances to curb rising utility expenses, U.S. Representatives Kathy Castor, Jay Obernolte, and Doris Matsui introduced the ON-DEMAND Act on Wednesday.
- Directs the U.S. Department of Energy to establish clear standards for virtual power plants.
- Provides technical assistance to utilities, regulators, and grid operators to scale distributed energy resources.
- Implements consumer protections to ensure safe deployment of rooftop solar, batteries, and smart thermostats.
Rising electricity demand prompted lawmakers to pursue legislative remedies for mounting household utility costs. The Optimizing Networks for Distributed Energy Management and New Demand Act directs federal agencies to assist local grid operators in scaling virtual power plants.
“My neighbors need relief from sky-high electric bills, and we should be putting every practical solution to work to lower their costs,” said Rep. Castor.
Virtual power plants coordinate devices across homes and businesses, such as batteries, smart thermostats, water heaters, and rooftop solar systems, to balance electricity supply and demand. For example, water heating can be shifted to a less busy time, or battery power can be deployed during peak demand.
Industry stakeholders backed the legislative push to remove regulatory hurdles for distributed energy resources. Trade groups and technology firms emphasized the role of grid flexibility in managing constraints.
“As electricity demand continues to grow, innovative solutions like virtual power plants can help strengthen our electric grid and lower energy costs for American families,” said Congressman Obernolte.
“Families in Sacramento and across the country are paying too much for electricity, and we need to do more to bring those costs down,” said Congresswoman Matsui.
| Supporter Organization | Representative | Sector Focus |
|---|---|---|
| Advanced Energy United | Dylan Reed | Clean Energy Advocacy |
| National Electrical Manufacturers Association | Will Hupman | Electrical Equipment |
| Siemens USA | John Pappas | Industrial Manufacturing |
| Sunrun | Mary Powell | Residential Solar and Storage |
“Energy security and economic growth depend on a resilient and efficient electric power system,” said Will Hupman, Senior Vice President of Government Affairs at the National Electrical Manufacturers Association.
The legislation directs the Department of Energy to pursue open, stakeholder-driven processes for standards development.
“By addressing barriers to the deployment of virtual power plants, this legislation will help utilities unlock the full potential of distributed energy resources, improve grid flexibility, and make more efficient use of existing infrastructure,” said John Pappas, Government Affairs Director for Siemens USA.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
