MN HF2986

Public utilities must file a virtual power plant tariff and program with the Minnesota Public Utilities Commission by 2026, enabling aggregation of distributed energy resources (solar, batteries, electric vehicles, smart thermostats, heat pumps) to address grid events during peak demand periods

Utilities must reduce winter and summer peak demand by at least 10% from 2025 baseline levels by 2028 through virtual power plant programs and other peak reduction measures

Eligible technologies include solar photovoltaic devices, energy storage systems, electric vehicles, smart thermostats, heat pumps, and demand response measures, with distributed energy resources capped at 10 megawatts capacity

Participants and aggregators receive performance-based compensation for electricity dispatched or demand reductions during grid events, with utilities prohibited from requiring collateral for program participation

Annual reporting to the commission and legislature begins January 31, 2028, covering enrolled capacity, peak reductions achieved, and recommendations to increase participation