Stakeholders gather in Minnesota to explore the future of energy through virtual power plants

Leaders from across Minnesota convened Thursday to explore the promise of virtual power plants—an emerging energy solution that uses existing technologies like solar panels, battery storage, and smart thermostats to boost grid capacity and reliability while keeping costs down.  

Virtual power plants are gaining national momentum for their ability to quickly and affordably add grid capacity by leveraging existing resources, reducing reliability risks as demand grows. At the event — which was convened by the business advocacy nonprofit Ceres and hosted at the McKnight Foundation offices in Minneapolis — stakeholders highlighted how virtual power plants could help Minnesota lower energy costs, strengthen grid reliability, create new jobs, and attract new investments in innovative grid solutions.  

The cross-industry participants included representatives from Fresh Energy, Google, Minnesota Department of Commerce, Minnesota Public Utilities Commission, Minnesota Solar Energy Industries Association, and Great Lakes Regional Organizing Committee, Laborers' International Union of North America (LiUNA), Minnesota and North Dakota. 

“The Minnesota Solar Energy Industries Association (MnSEIA) is excited to collaborate with the Commission, lawmakers, and stakeholders to advance the conversation around Virtual Power Plants in Minnesota. By harnessing distributed energy resources, virtual power plants offer a flexible solution to reduce peak demand, lower costs for ratepayers, and enhance the resiliency of our energy system. We look forward to partnering with legislators and advocates in the year ahead to drive these innovative programs forward,” said David Moberg, policy and regulatory affairs associate, Minnesota Solar Energy Industries Association (MnSEIA).   

"Utility investments in conventional energy infrastructure have created high-quality jobs and careers for generations of Minnesotans,” said Keven Pranis, marketing manager, Great Lakes Regional Organizing Committee, Laborers' International Union of North America (LiUNA), Minnesota and North Dakota. “As we bring new resources online, including through virtual power plants, it's important to make sure that the new jobs are as good and as available to local workers as the existing jobs, and that we are building career pipelines that reach communities that are historically underrepresented our energy industry." 

The convening comes ahead of a key deadline for major Minnesota utility Xcel Energy’s Distributed Capacity Procurement filing on October 3, 2025. Minnesota state lawmakers are expected to consider legislation in 2026 aimed at leveraging virtual power plants to affordably meet Minnesota's growing energy demand and help achieve the state’s goal of 100% clean energy by 2040.   

“Virtual power plants are a powerful tool to accelerate the energy transition and unlock new investment,” said Kelly Trombley, senior director, state policy, at Ceres. “By leveraging the untapped potential of businesses with large facilities that already generate onsite renewable power, Minnesota can maximize energy resources, quickly add grid capacity, and reduce reliance on fossil fuels. Robust virtual power plant policies will ensure the state captures these economic and energy benefits.” 

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About Ceres

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.