Advancing grid modernization with a virtual power plant or distributed energy resources management system
Overview
The Virtual Power Plant (VPP) or Distributed Energy Resources Management System (DERMS) Pilot Project aims to modernize the District of Columbia’s energy delivery system for increased sustainability. This pilot project, recommended by the PowerPath DC Pilot Projects Governance Board, aims to demonstrate the grid interactivity and interoperability of buildings and Distributed Energy Resources (DERs), allowing them to act as grid resources. Some expected outcomes of the pilot include reduce greenhouse gas emissions as well as impacts on power quality and peak usage.
In support of the District’s clean energy goals, the VPP or DERMS pilot must be equitable, scalable, and provide an accessible customer enrollment process, particularly for low-to-moderate-income individuals. The project(s) must also include a continuity plan to ensure they can continue operating after the conclusion of the pilot period without additional funding.
Project Status
The DCPSC issued a Request for Proposals with more than $4.4 million in available funding, with proposals due by January 22, 2026. The Commission seeks experts to design and manage these projects over a period of up to five years, including at least two years of operational demonstration. Management of the pilot will include operational oversight, maintenance, and performance monitoring.
Background
This pilot is part of a broader effort under the Pepco Holdings, Inc.-Exelon merger agreement, which established a $21.55 million Pilot Project Fund Subaccount to support energy modernization projects in the District. The project builds upon the Commission's investigation into Modernizing the Energy Delivery System for Increased Sustainability (MEDSIS) and aims to provide insights for identifying technologies and policies that can advance the District's energy modernization goals.