Good morning. Wednesday’s solar eclipse was a dream for astronomers—and a nightmare for European power pros. When the moon blocked gigawatts of solar output, costs spiked by hundreds of euros in suddenly shadowed countries like France and Germany…but the grid effect was short-lived.
Fortunately (or unfortunately, depending on who you ask) it’s a relatively rare cosmic phenomenon. 🌚 ☀️
— Molly, Carrie, and the Energy Central editorial team
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A VPP veteran told us the key to boosting customer participation 🔑
If you haven’t noticed, VPPs are kind of a big deal right now. It’s a moment long awaited by DER evangelists like Mathew Sachs, chief strategy officer at CPower—one of the country’s biggest VPP platforms. Last year, CPower customers delivered around 38 GWh of load relief to the grid from January-September (a 137% increase over all of 2024).
We asked Sachs, who has spent over a decade in the distributed energy space, to break down the current momentum—and offer a sneak peek of what’s next.
(This interview has been condensed and edited for clarity.)
Why do you think VPPs are only just starting to take off?
Like everything else, VPPs—and demand-response before it—have been on an innovation curve. Emergency demand-response was good proof that we could do it technically and economically. So, how do we scale it? Now is the moment, while we’re in an affordability crisis.
What are you excited for in the coming months (and years)?
For a long time, some distributed generation didn’t have a defining problem to solve. It was a nice-to-have. But now, we have a problem to solve that could be critical to how we evolve as a country.
With data centers, their grid problem is speed-to-power. But as costs come in and they start really competing, they will be trying to get more profit. I think that’ll motivate them to be flexible assets in their own right. PJM’s proposed Interim Resource Adequacy Service rules could unlock distributed batteries on many levels—distribution, the bulk grid, and even the home level.
What are the biggest challenges in bringing new customers into VPP programs, and how do you address them?
These programs are set around the grid's needs, not the consumers' needs. That's not a recipe for success. But it doesn’t have to be that way.
We’ve got to find ways to meet customers where they’re at. We started segmenting customers by their flexibility needs or capabilities, instead of by zip code or industry type. Putting that puzzle together is the challenge that our industry is going to face. 🧩
The DOE is hitting the brakes on a federal effort to fast-track interstate transmission.
What happened: In 2024, the Biden administration pinpointed three clogged corridors that would benefit from federal funding and streamlined permitting for new lines. These included stretches of Indigenous reservations and parts of the Southwest. Now, Energy Sec. Chris Wright is putting the kibosh on this effort.
Why? The DOE claimed that the corridor designation process “contributed to confusion and concern” in some communities. The agency also said that the Biden administration promoted the corridors as “a means to advance their Green New Scam agenda and ‘accelerate decarbonization.’”
The big picture: This highlights a key sticking point in the federal permitting reform debate. Democrats’ POV: We need interstate lines to widen the reach of clean energy. But prominent Republicans have opposed federal intervention in transmission infrastructure (and want to leave lines up to states and utilities).
Yes, but: The DOE noted that it has already shelled out billions for transmission upgrades around the country, including a $3.3B loan to AEP Texas and $26.5B to Georgia Power and Alabama Power.
Is it time to ramp up the interstate transmission buildout?
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A bipartisan Senate bill aims to shore up cyber defenses for municipal utilities and rural co-ops.
The bill would reauthorize a Biden-era DOE program providing these orgs with grants and technical assistance to fortify their cybersecurity setups, unlocking $250M over five years for these efforts. The bill’s companion in the House passed unanimously earlier this year.
Also on Capitol Hill: Sens. Richard Blumenthal (D-CT) and Josh Hawley (R-MO) unveiled a bill that would bar state-regulated utilities from handing execs bonuses (in years when electric rates rise quicker than inflation). Check it out: We broke down how utility CEO salaries stack up to other industries.
New York utilities want to own generation again.
The pitch: The NY PSC is mulling over utilities’ request to build their own wind and solar generation in what’s currently a deregulated market. Their argument? Utility-owned renewables would 1) lower costs 2) boost grid reliability and 3) advance the state’s emissions goals.
The pushback: Some critics claim this move could increase costs. For example, failed projects could hit utility customers’ wallets. Meanwhile, IPPs say the shift would delay new generation…but they don't exactly have a vested interest in opening up the market.
The trend: Utilities in other states are also eyeing re-regulation, including PA, OH, NJ, and IL. We are watching this space. 👀
California lawmakers are looking to rein in utility spending as energy costs skyrocket.
Surf's up, bills up: CA residents face power bills around 2X above the national average. Now, state Democrats want to change that. Their proposed legislation would: 1) Order utilities to prove they’re utilizing grid assets before building new infrastructure 2) reduce utility ROE on less-risky investments and 3) direct the state PUC to create performance-based metrics, among other measures.
This week, clean energy and environmental groups penned a letter in support of the bill: “Regulators, policymakers, and all Californians deserve clear, publicly accessible information about how efficiently the distribution grid is being used before building new infrastructure,” they wrote.
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Thanks for reading. Have a summery weekend!