Virginia Legislates Tripling Energy Storage Targets to 10GW by 2045

image: skip plitt

The Virginia General Assembly has passed landmark legislation (HB2537/SB1394) that mandates Dominion Energy and Appalachian Power, the state’s two largest utilities, to deploy 10 gigawatts (GW) of energy storage by 2045—a threefold increase from the original 3.1 GW target set under the 2020 Virginia Clean Economy Act (VCEA).

The specific details are as follows: Dominion Energy must procure 5.22 GW of short-duration storage (≤4 hours) and 3.48 GW of long-duration storage (≥6 hours) by 2045, accounting for 87% of the statewide goal. Appalachian Power required to secure 780 MW of short-duration storage by 2040 and 520 MW of long-duration storage by 2045. This brings the total energy storage capacity required between the two utilities to 10 GW, more than triple the state’s current target.

Virginia’s electricity demand is projected to double within the next decade, driven by explosive growth in data centers—now the largest market globally. A 2023 study by the Joint Legislative Audit and Review Commission (JLARC) warned that meeting this demand requires massive new energy infrastructure.

Passed in 2020, the VCEA requires Virginia’s two public utilities, Dominion and Appalachian Power, to have a combined target to add 3.1 GW of energy storage capacity by the end of 2035. It also gives Dominion until 2045, and Appalachian until 2050, to supply electricity from only carbon-neutral sources.

The Senate version passed unanimously, while the House bill saw partisan division (54-44). Governor Glenn Youngkin, who vetoed other clean energy bills this session, is reviewing the legislation.

Analysts note the 10 GW target positions Virginia as a leader in energy storage, attracting investments from firms like Nvidia, which is developing AI-driven grid optimization tools to manage renewable intermittency.

This legislative overhaul reflects Virginia’s balancing act between decarbonization mandates and surging industrial energy demand. Critics argue the state’s heavy reliance on natural gas (56% of energy mix) and nuclear (32%) contradicts decarbonization goals.