USA, Minnesota: Minnesota will soon have its first virtual power plant after approval from the state Public Utilities Commission for a pilot by Xcel Energy.
The state becomes one of around two dozen in the US developing virtual power plants, which use software to link distributed energy sources and operate them as a single system to reduce pressure on the grid.
Virtual power plants connect resources such as solar panels and batteries. Supporters say even a single home system, like a Tesla Powerwall, can make a bigger impact when combined across many users, according to the Minnesota Solar Energy Industries Association.
Executive director Logan O’Grady said bundled systems help manage peak demand, especially during hot weather when electricity use rises sharply.
The $430 M pilot, due in 2028, will use a network of utility-owned batteries rather than relying on customer systems. Locations have not been confirmed, but regulators said units will be placed closer to homes and workplaces to improve flexibility and resilience.
A similar test in California delivered 535 MW, enough to cover about half of San Francisco’s peak demand.
Supporters say these systems can reduce the need for polluting gas-fired peaker plants. Critics argue Xcel’s approach misses the chance to use cheaper customer-owned assets.
Xcel’s Bria Shea said utility ownership ensures faster response, better coordination, and clearer responsibility during peak stress on the grid.
Minnesota Public Utilities Commission said the project will still bring benefits through improved efficiency and reduced connection times.
Source: Government Technology
