In 2026, virtual power plants must scale or risk being left behind

The AI data center frenzy is shifting utilities’ focus to large-scale generation. But advocates say flexible, distributed energy resources still provide the biggest bang for the buck, according to our 2026 DER outlook.

By Herman K. Trabish • Jan. 27, 2026

Moody’s sees $3T in data center spending by 2030

The financial services company says costlier builds and power constraints could stretch out completion timelines, but demand remains strong.

By Sebastian Obando • Jan. 26, 2026

Explore the Trendline➔

Top 5 Stories from Utility Dive

Power demand is rising amid dramatic shifts in federal energy policy, but technology and markets continue to push the grid toward cleaner, more distributed resources. 

By Utility Dive staff

Gas sector takes furnace efficiency fight to Supreme Court

Advocates say proven energy-saving technologies can meet the stricter efficiency rules. The gas industry says the rules ban non-condensing furnaces and other products.

By Robert Walton • Jan. 22, 2026

Managed EV charging can save utilities and ratepayers money: report

By optimizing electric vehicle charging around peak times, utilities can delay costly distribution grid upgrades while cutting per-vehicle charging costs by 25% or more, Brattle Group said this month.

By Brian Martucci • Jan. 21, 2026

New Jersey governor orders state to accelerate solar, storage and virtual power plants

Gov. Mikie Sherrill, who was sworn in Tuesday, also ordered regulators to study how to “modernize” the traditional electric utility business model, including by making utility profits “less dependent on capital spending.”

By Robert Walton • Jan. 21, 2026

The data center dependency crisis: When our grid can’t function without big tech

We're sleepwalking into a future where our electric grid depends on the voluntary cooperation of private technology companies because the short-term benefits are too attractive to resist, writes Mothusi Pahl of Hartwell and Loche.

By Mothusi Pahl • Jan. 16, 2026

NJ governor seeks changes to ‘weaken’ large load tariff bill, lawmaker says

“We are not willing to bend to any changes to this bill,” Assemblyman David Bailey Jr. told Utility Dive. “If he does nothing, in essence, he pocket vetoes it ... That’s on him.”

By Meris Lutz • Jan. 15, 2026

Xcel defends storage ownership in distributed capacity pilot

The Minnesota utility floated modifications to its Capacity*Connect proposal, but it maintained it should own the batteries as it builds out the program. Stakeholders argued for more competition.

By Robert Walton • Jan. 14, 2026

Why robust planning is central to data center success

The size and pace of data center creation is a major shift for utilities and builders on many levels.

Jan. 12, 2026

Illinois sets 3-GW energy storage target, requires utilities to develop virtual power plants

Electricity bills in Illinois rose 15% last year. A new law aims to reduce energy costs by incentivizing new resources, expanding solar and growing efficiency programs.

By Robert Walton • Jan. 9, 2026

Utilities under pressure: 6 power sector trends to watch in 2026

Facing rising demand and aggressive load growth projections, utilities are rolling out massive spending plans. Now they'll have to walk a fine line with regulators and ratepayers.

By Meris Lutz , Robert Walton , Ethan Howland , Diana DiGangi • Jan. 8, 2026

How VPPs can help data centers connect to the grid faster

Virtual power plants can be developed quickly to satisfy data center demand, but reaching the scale required to meet soaring load growth will require new commercial models, according to RMI.

By Jesse Cohen, Mark Dyson and Lauren Shwisberg • Jan. 8, 2026

Modern rate design needed to meet Northeast, Mid-Atlantic grid challenges: NEEP

Seasonal rates and opt-out time-of-use plans are among the reforms that can find success without major technology or infrastructure upgrades, the energy-efficiency group said.

By Brian Martucci • Jan. 7, 2026

Federal agencies look to performance contracts as energy efficiency aid shrinks

Agencies are authorized by statute to use energy performance contracts to make efficiency upgrades with little up-front cost, the National Lab of the Rockies says.

By Joe Burns • Jan. 7, 2026

Programmatic alignment is key to scaling residential battery demand response

Utilities, battery manufacturers, technology providers and customers all operate under different incentive structures, writes Uplight’s Sneha Vasudevan.

By Sneha Vasudevan • Jan. 6, 2026

Home efficiency upgrades could offset data center loads while creating jobs: report

A report from AnnDyl shows significant potential benefits for local grids, employment and utility ratepayers when data center companies invest in residential energy efficiency.

By Brian Martucci • Dec. 23, 2025

Turing test-inspired tool compares virtual power plants to gas peakers

EnergyHub’s “Huels test” asks whether a grid operator can distinguish between a gas peaker plant and a VPP based on their operational characteristics. To pass, the VPP must match the visibility, “schedulability” and availability of a peaker.

By Brian Martucci • Dec. 17, 2025

Grid operators, ratepayers shouldn’t fear flexible data centers: GridCARE

The startup says its analysis shows that if a 1-GW data center incorporates “just modest amounts of flexibility,” it could reduce costs by 5% across all customer classes or unlock more than $1.35 billion in capital for the utility.

By Brian Martucci • Dec. 16, 2025

To power the AI revolution, we need a grid built for speed

Advancing AI requires utility incentive reforms that value digital upgrades like advanced metering and distributed energy resource management systems, Schneider Electric’s Jeannie Salo writes.

By Jeannie Salo • Dec. 11, 2025

Bill to expand weatherization programs passes through House committee

The bill would raise the average subsidy per housing unit from $6,500 to $12,000 for low-income households. It comes as the federal government and some states cut back on efficiency programs. 

By Brian Martucci • Dec. 10, 2025

Amazon to scale AI-enabled efficiency tool after pilot shaves 15% from energy use

The e-commerce giant plans to deploy Trane Technologies’ BrainBox AI platform across more than 30 sites within its grocery fulfillment and distribution network in the U.S.

By Phil Neuffer • Dec. 10, 2025

U.S. data center power demand could reach 106 GW by 2035: BloombergNEF

The forecast is 36% higher than its April estimate. Other experts warn that an AI bubble or speculative data center proposals could be fueling excessive load growth projections.

By Brian Martucci • Dec. 3, 2025

National Petroleum Council urges permitting reform

A new report from the council says the deepening interdependence of the gas and electric sectors necessitates more coordination between them, along with permitting reform from the government.

By Diana DiGangi • Dec. 3, 2025

Solving PJM’s data center problem

The grid operator must stop buying capacity for new data centers. Instead, it can provide them with only interruptible service until they bring their own capacity, write Tom Rutigliano and Claire Lang-Ree of the Natural Resources Defense Council.

By Tom Rutigliano and Claire Lang-Ree • Dec. 2, 2025

Utilities, regulators look to accelerate pilots to achieve speed-to-innovation

Stakeholders say clear cost limits, timelines and parameters for scaling can overcome the inertia of a traditionally risk-averse industry.

By Herman K. Trabish • Dec. 1, 2025