Bipartisan Bill Introduced to Lower Electric Bills and Enhance Grid Reliability Through Virtual Power Plants
Reps. Kathy Castor, Jay Obernolte, and Doris Matsui have introduced the ON-DEMAND Act, a bipartisan bill aimed at reducing electricity bills and improving the reliability of the U.S. electric grid. The legislation focuses on promoting the wider adoption of virtual power plants (VPPs). VPPs work by coordinating various home and business devices, such as batteries, smart thermostats, water heaters, and rooftop solar systems, to balance electricity supply and demand. This coordination allows for shifting energy use to off-peak times, thereby reducing strain on the grid and potentially lowering overall energy costs. The bill directs the Department of Energy to establish standards, provide technical assistance, and strengthen consumer protections related to VPPs. The initiative has garnered support from various industry and advocacy groups, including Advanced Energy United, the Environmental Defense Fund, the Sierra Club, and Sunrun.