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Clean Energy 101: The Changing Electricity Grid - RMI
This guide provides an overview of the traditional centralized electricity grid architecture and the emerging shift toward distributed energy resources (DERs) to improve reliability and flexibility in the face of rising demand and extreme weather.
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Document type: Guide
Grid-Scale Virtual Power Plants are Here. Have Utilities Noticed?
This policy brief by RMI argues that virtual power plants (VPPs)—aggregations of distributed energy resources like batteries and smart thermostats—have reached a scale capable of replacing traditional power plants but are not being adequately integrated into utility long-term planning. The document highlights that while VPPs are increasingly mentioned in regulatory filings, they are often not modeled as selectable resources on an equal footing with conventional generation, leading to a risk of inefficient grid overbuilding.
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Document type: Policy brief
Redefining Rooftop Solar Through Community Action
This case study examines Convite Solar, a community-led rooftop solar initiative in the Dominican Republic designed to expand clean energy access to low- and middle-income (LMI) households. The model utilizes standardized systems, collective labor, and cooperative financing to overcome the financial and technical barriers that have previously limited solar adoption to the wealthiest 4.5% of the population. A pilot in Nizao demonstrates the potential to reduce electricity bills and government subsidy burdens while enhancing energy security.
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Document type: Case study
How to Leverage Cost Allocation to Enable Rapid, Affordable, and Equitable Electrification
This report by RMI examines how public utility commissions in Minnesota, Massachusetts, and New York use different cost allocation strategies during proactive distribution planning to balance grid investment needs with customer affordability during the electrification of buildings and transportation.
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Document type: Report
How Virtual Power Plants Can Help the United States Win the AI Race
This policy brief by RMI argues that Virtual Power Plants (VPPs) can mitigate the grid constraints currently delaying the interconnection of data centers and other large loads in the United States. The document proposes three commercial models to accelerate VPP deployment and suggests policy reforms in interconnection, integrated planning, and customer protection to ensure the US remains competitive in the AI race.
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Document type: Policy brief
COMPARATIVE REVIEW OF GLOBAL APPROACHES TO ELECTRICITY TARIFF SETTING
This report provides a comparative analysis of global electricity tariff-setting methodologies, focusing on the process of determining revenue requirements and conducting Cost of Supply (CoS) studies. It examines various regulatory models—including rate-of-return, incentive-based, performance-based, and market-based pricing—and evaluates their effectiveness in balancing financial sustainability for utilities with affordability for consumers. The document concludes with specific recommendations for South Africa to modernize its tariff structures and revenue determination processes as it transitions toward a wholesale electricity market.
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Document type: Report
Supplemental Report on Utility VPPs
This supplemental report by RMI addresses the barriers to scaling Virtual Power Plants (VPPs) in the United States, specifically focusing on the challenges posed by inconsistent metering and telemetry requirements for distributed energy resources (DERs).
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Document type: Report
Reimagining the Electricity Sector in Island Nations with Virtual Power Plants
This report examines how distributed virtual power plants (VPPs) can address energy challenges in island nations, specifically focusing on the Caribbean. Using a case study from the US Virgin Islands, it analyzes how aggregating decentralized energy resources can improve grid stability, resilience, and affordability while reducing dependence on imported fossil fuels.
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Document type: Report
Supporting a Reliable Grid: The Opportunity for Virtual Power Plants in Michigan
This policy brief outlines how virtual power plants (VPPs)—aggregations of distributed energy resources—can address Michigan's aging distribution grid, blackout incidents, and narrowing capacity for peak demand while supporting clean energy standards of 80% by 2035 and 100% by 2040.
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Document type: Policy brief
Local Governments Can Achieve Texas-Sized Impacts from Distributed Energy Assets and Virtual Power Plants
This briefing by RMI outlines how local governments in Texas can accelerate the deployment of distributed energy resources (DERs) and virtual power plants (VPPs) to enhance grid reliability, reduce costs, and increase resilience against extreme weather.
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Document type: Briefing
Scaling Utility-Enabled Distributed Energy Resources in Nigeria
This report by RMI outlines a strategic roadmap for scaling utility-enabled distributed energy resources (DERs) in Nigeria to improve power reliability and increase distribution company (DisCo) revenues.
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Document type: Report
Virtual Power Plant Flipbook
The Virtual Power Plant Flipbook is a guide by RMI designed to help utilities and stakeholders implement virtual power plants (VPPs) by providing a collection of case studies and a comparison matrix. It defines VPPs as aggregations of distributed energy resources used to enhance grid reliability, resilience, and decarbonization.
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Document type: Guide
VPP Policy Principles
This policy brief by RMI outlines principles for energy regulators and policymakers to leverage virtual power plants (VPPs) to enhance grid affordability and reliability by aggregating customer-sited distributed energy resources (DERs).
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Document type: Policy brief
VPP POLICY PRINCIPLES
This policy brief, authored by the VP3 Regulatory and Policy Strategy Working Group and published by RMI, establishes a set of foundational policy principles designed to enable the growth and integration of virtual power plants (VPPs). The document outlines 17 principles across five key areas—DER asset base, VPP design, equitable compensation, customer experience, and utility/system operator roles—to guide policymakers and energy industry stakeholders in creating a fair and efficient environment for VPPs over a one-to-four-year horizon.
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Document type: Policy brief
Virtual Power Plants, Real Benefits
This briefing from RMI describes the role of Virtual Power Plants (VPPs)—aggregations of distributed energy resources like batteries and electric vehicles—in enhancing grid reliability, affordability, and decarbonization, while outlining priorities to scale the market.
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Document type: Briefing
How Distributed Energy Resources Can Lower Power Bills, Raise Revenue in US Communities
This guide explains how Distributed Energy Resources (DERs) can lower energy costs and generate revenue for US communities. It highlights the impact of the Inflation Reduction Act and FERC Order No. 2222 in lowering barriers to entry and creating new value streams. The document outlines three paths for local governments to expand DERs: utilizing aggregation to enter wholesale markets, implementing demand response programs with municipal fleets, and leveraging federal and state funding to accelerate community-wide adoption.
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Document type: Guide
Regulatory Process Design for Decarbonization, Equity, and Innovation
This RMI report provides recommendations for modernizing the regulatory processes of state public utilities commissions (PUCs) in the United States to accelerate the transition to a decarbonized and equitable electric grid. It identifies four primary areas for reform: setting clear proceeding objectives, expanding stakeholder roles in solution development, reducing information asymmetry through data transparency, and initiating new inclusive processes such as regulatory sandboxes and updated benefit-cost analysis frameworks.
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Document type: Report
How to Build Clean Energy Portfolios
This guide by RMI provides a framework for updating electricity resource procurement processes for vertically integrated utilities in the US. It advocates for 'all-source', 'objective-aligned', and 'least-regrets' procurement to optimize the deployment of clean energy and distributed energy resources (DERs) during a period of significant projected investment.
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Document type: Guide
Improving Reliability for Underserved Communities
This policy brief by RMI examines the 'undergrid minigrid' model piloted in Mokoloki, Nigeria, and discusses its potential application to improve electricity reliability for underserved rural communities in India. The model involves a privately owned solar minigrid sharing existing distribution infrastructure with a utility company to provide reliable last-mile service.
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Document type: Policy brief
Boosting Community Resilience by Building Nigeria’s First Solar- and Battery-Powered Undergrid Minigrid
This case study describes the implementation of Nigeria's first solar- and battery-powered undergrid minigrid in the Mokoloki community of Ogun State. The project demonstrates a tripartite business model involving a utility, a private developer, and the community to provide reliable electricity in areas that are technically grid-connected but underserved.
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Document type: Case study