Legislation introduced in the Michigan Senate would build a framework to enable “virtual power plants” in the state.
As the name suggests, those aren’t physical power plants. Instead, the idea revolves around utilities being able to take surplus power from distributed sources of energy, like rooftop solar panels. They can then redistribute it throughout the grid, especially during times when demand is highest.
“Mostly it's going to be summer afternoons when it's super hot,” said State Sen. Sue Shink, a Democrat who is one of the legislation’s co-sponsors. “Lots of people have air conditioners on, and that is also, not coincidentally, when the most solar power is being produced.”
Shink said virtual power plants would allow utilities to meet demand without using heavy-polluting “peaker plants” as they typically do now. In addition, she said, “It's a way to avoid building more power plants, while making sure that people are accessing the kind of power that they need at those really intense times."
States like Vermont have tried similiar approaches to power. Virtual power plants in Michigan should keep energy prices more affordable while also making the state grid more resilient.
“In Michigan, we have some of the highest prices and the worst reliability in the entire country,” Shink said. “We can have a better system that is more reliable and costs us less. And this legislation can help us do that.”
The legislation has only just been introduced and has yet to be considered by a Senate committee. Shink said there seems to be a lot of interest in the idea, but she’s not yet sure how much widespread support it has. She anticipates a lot of “conversations” will need to happen before it can move forward.
“I think one of the hurdles is to work with the utility companies to gain their support,” Shink said. “Because oftentimes if they don't support something, it doesn't happen. We've seen that time and time again in Michigan.”
