New Virginia Laws to Improve Grid Utilization and Increase Energy Storage

On April 13, 2026, Virginia Governor Abigail Spanberger signed House Bill 434 into law, which creates a new regulatory framework for grid utilization initiatives. Under this legislation, the state's two major investor-owned utilities, Appalachian Power and Dominion Energy, must provide detailed distribution grid utilization data and propose additional measures such as non-wire solutions to increase capacity. Non-wire solutions include energy storage, demand response, and behind-the-meter resources. The State Corporation Commission will analyze the utilities' petitions before establishing timelines for the utilities to improve electric grid utilization based on the provided metrics.

Governor Spanberger also signed House Bill 895 and Senate Bill 448 into law on April 13, 2026, increasing the energy storage capacity targets in the Commonwealth. Additionally, the law requires the Virginia Department of Energy to collaborate with the Department of Environmental Quality and the Department of Fire Programs in developing model ordinances for localities regarding the regulation of energy storage projects. Under the legislation, the State Corporation Commission must hold a technical conference on energy storage safety standards and practices.