State Approves ComEd Virtual Power Plant
Posted onComEd Virtual Power Plant Approved
Data centers and climate change fueled heat waves have been driving up electricity demand. And with the PJM Interconnection facing a supply shortage, this has meant rising PTC rates. Thankfully, IL lawmakers approved a solution from ComEd that could help avoid blackouts. That solution is a Virtual Power Plant, or VPP. But how does this work, and what does it mean for your Illinois electricity bill? We’re going to explain how a VPP works. And, how to find the best energy supplier.
State Fighting Rising Electricity Rates
The cost of electricity has been skyrocketing. For instance, ComEd has seen an 8% increase this summer alone. And since December 2019, PTC rates have risen 44% in total! With rates soaring and no end in sight, lawmakers and utilities have been in a bind trying to find solutions.
Earlier this year, IL Gov. JB Pritzker signed the Clean and Reliable Grid Affordability Act (CRGA) into law. It's a response to rising electricity costs and tightening demand. And one of the ways they're combatting costs is by requiring electric utilities to develop VPP programs
What is a Virtual Power Plant?
A VPP brings together customer‑owned energy resources. These include EV battery storage and rooftop solar, and coordinates them as a single power source. Together, these power sources can supply energy to the grid at peak useage. Starting in 2027, the ComEd VPP will operate at pre-scheduled times. Customers who join the VPP program can send stored energy from their batteries back to the grid at peak times. In return, they get seasonal payments for the power they provide.
Will a Virtual Power Plant lower Electricity Costs?
VPP's have a lot of benefits, including lowering electricity costs. Virtual power plants have a low cost of entry, so even small homeowners can participate. This way, customers can earn modest payouts by providing energy to the grid. In addition, VPPs can offset grid demand at peak hours to avoid blackouts, keeping the lights on for everyone. So this can cut down on the use of expensive, "peak" plants that use fossil fuels, reducing not just costs but pollution as well. And VPPs do all of this without huge investments in new generators, batteries, or infrastructure.
Avoid Rising IL Electricity Rates
Rising energy demand has already caused PTC rates to rise this summer. As lawmakers work on solutions, rates may climb further. So, it’s important to shop for a cheap electricity fixed rate plan to save on your electric bills. Doing this now can save you money for months to years to come. Plus, if you have rooftop solar or an EV, then you can also sign up for the VPP program and save even more.
Start now by comparing rates, reading reviews, and shopping plans with us. Visit https://www.ilenergyratings.com to see the electric plans in the ComEd area.
