Energy Storage News•about 2 months ago
Minnesota regulator approves Xcel’s controversial utility-owned virtual power plant
Key Takeaway
Utility-owned VPPs are gaining significant regulatory approval, signaling a shift in capacity procurement that could reshape opportunities for IPPs and create new revenue streams for large power consumers.
AI Summary
- •Xcel Energy's Capacity*Connect virtual power plant (VPP) program in Minnesota received MPUC approval for a 200MW expansion.
- •This utility-owned VPP expansion signals a growing trend of utilities directly controlling distributed capacity, potentially impacting independent power producer (IPP) opportunities in traditional capacity markets.
- •Regulatory approval for utility-owned VPPs sets a precedent, indicating a shift in how capacity is procured and managed across regions like MISO.
- •Developers should note the increasing market for VPP-enabling technologies, while large loads can explore participation in such programs for demand charge reduction or revenue.
Topics
capacity-marketinterconnectmisopolicystorage