Speaking of: Experts say the US can expand grid capacity for data centers without driving up electricity bills…if regulators embrace flexible demand policies. (Utility Dive)
The challenge: Utilities plan to invest $1.1T in infrastructure through 2029 to meet surging load from hyperscalers and industrial customers. Without reform, those costs could flow straight to ratepayers, adding to already-steep price hikes.
The opportunity: Researchers from UC Berkeley and Duke say large loads could avoid those rate spikes by agreeing to curtail power during peak hours or by using VPPs and DERs to balance demand. Just 0.5% annual curtailment could offset up to 98 GW of new demand, according to the data.
The policy shift: States are experimenting with large-load tariffs that require flexibility commitments, on-site storage, or long-term capacity payments. Regulators in Illinois and California are also using DER aggregation to reduce local peaks.
Listen: Curious how major VPP pilots might really scale? Then our latest episode of Power Perspectives—all about how utilities are rethinking flexibility, customer engagement, and distributed assets after major VPP wins—is for you. Find it on Spotify, Apple, or YouTube.