This brief outlines the ways in which VPPs can support grid reliability, affordability, and decarbonization outcomes, with supporting metrics and case study examples from other states. Michigan utilities, regulators, and legislators have laid the groundwork for fundamental technologies, program structures, and market rules that are part of the foundation for VPPs. This brief concludes with a set of actions that Michigan utilities, regulators, and legislators can take to advance VPPs in the state to support affordable, reliable, decarbonized power for all Michiganders:
•Michigan utilities and third parties can apply for grant funding and financing for VPP projects through Michigan’s Department of Environment, Great Lakes, and Energy (EGLE) and the Michigan Public Service Commission (MPSC).
•Michigan investor-owned utilities can apply to the MPSC’s expedited 90-day pilot review program for VPP pilots.
•The Michigan legislature can pass VPP legislation requiring Michigan utilities to implement VPP programs to unlock a key source of system capacity and other grid services, while supporting energy affordability, reliability, and decarbonization outcomes.
•The MPSC can open up aggregation of residential and small commercial retail customers participating in wholesale markets and unbundle existing retail tariff mechanisms.
•The MPSC can open a proceeding to evaluate future advanced metering infrastructure-related planning and procurement strategies to increase transparency and stakeholder engagement, and ensure next generation metering investments have the necessary DER integration capabilities.
Access the brief here
