Supporting a Reliable Grid: The Opportunity for Virtual Power Plants in Michigan

Michigan faces grid reliability issues, including frequent blackouts and narrowing capacity for peak demand. Virtual power plants (VPPs), which aggregate distributed energy resources (DERs), are proposed as a solution to support the state's clean energy goals of 80% by 2035 and 100% by 2040. The document recommends that utilities seek funding from the Department of Environment, Great Lakes, and Energy (EGLE) and the Michigan Public Service Commission (MPSC), utilize the MPSC's 90-day pilot review program, and that the legislature mandate VPP implementation. Additionally, it suggests the MPSC allow residential and small commercial aggregation in wholesale markets and update metering infrastructure procurement to ensure DER integration capabilities.

• Michigan's electric grid is characterized by an aging distribution system with frequent blackouts and a decrease in available capacity to meet peak demand. VPPs can mitigate these issues while helping the state achieve clean energy standards of 80% by 2035 and 100% by 2040.
• To advance VPPs, the brief recommends that Michigan utilities and third parties seek financing through the Michigan Public Service Commission (MPSC) and the Department of Environment, Great Lakes, and Energy (EGLE), and that investor-owned utilities use the MPSC's 90-day expedited pilot review program.
• The document proposes several regulatory and legislative actions: the Michigan legislature should pass laws requiring utilities to implement VPP programs, and the MPSC should allow the aggregation of small commercial and residential customers in wholesale markets and reform metering infrastructure procurement for better DER integration.

APA

RMI (2025). Supporting a Reliable Grid: The Opportunity for Virtual Power Plants in Michigan. https://rmi.org/resources/supporting-a-reliable-grid-the-opportunity-for-virtual-power-plants-in-michigan/

Chicago

RMI. Supporting a Reliable Grid: The Opportunity for Virtual Power Plants in Michigan. 2025. https://rmi.org/resources/supporting-a-reliable-grid-the-opportunity-for-virtual-power-plants-in-michigan/.

Wikipedia

{{cite report |author=RMI |title=Supporting a Reliable Grid: The Opportunity for Virtual Power Plants in Michigan |date=27 March 2025 |url=https://rmi.org/resources/supporting-a-reliable-grid-the-opportunity-for-virtual-power-plants-in-michigan/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025supporting, author = {{RMI}}, title = {{Supporting a Reliable Grid: The Opportunity for Virtual Power Plants in Michigan}}, institution = {RMI}, year = {2025}, month = mar, url = {https://rmi.org/resources/supporting-a-reliable-grid-the-opportunity-for-virtual-power-plants-in-michigan/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }