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The New Jersey Board of Public Utilities’ Virtual Power Plant (VPP) Straw Proposal outlines a framework for creating a statewide program that would aggregate distributed energy resources—such as battery storage, smart thermostats, electric vehicles, and flexible appliances—to reduce electricity demand during periods of peak grid stress. The proposal recommends a phased implementation, beginning with pilot programs and expanding over time, while establishing performance standards, consumer protections, and compensation mechanisms to encourage participation from both customers and third-party aggregators. It also emphasizes that VPPs can improve grid reliability, lower overall energy costs, and reduce the need for expensive investments in new power plants and transmission infrastructure by making better use of existing distributed resources. The document is intended to gather stakeholder feedback before the BPU develops a formal statewide VPP program.
