Released October 1, 2026

2026 Virginia Energy Plan

Delivering affordable, reliable, and local clean energy that works for every community in Virginia and powers a thriving economy — today and for generations to come.

A message from Governor Abigail Spanberger

Governor Abigail Spanberger

My fellow Virginians,

Every four years, the Commonwealth develops an Energy Plan to guide our energy policy and decision-making for the years ahead.

We have written this Energy Plan at a moment unlike any in the recent past. Electricity demand is rising rapidly, and our energy system will need to grow at a pace we have not seen in more than 80 years.

Read the full letter

To meet this moment, my Administration started by engaging thousands of Virginians — residents, businesses, utilities, advocates, and local government leaders — through public listening sessions, stakeholder engagement meetings, and a statewide survey. We wanted to know what they need from our energy system.

Across our Commonwealth, Virginians conveyed the same priorities. Energy should be reliable, with enough power to support Virginia's growth. It should be clean and built in a way that protects the health of our communities and the natural resources around us. It should be local, so the jobs and benefits of our energy growth stay here in Virginia. And universally, everyone said it must be affordable.

Understanding the complexity of this moment, we knew that this year's Energy Plan needed to do more than present a prescriptive path forward — it needed to analyze the options before us.

To achieve this, we used sophisticated modeling and analysis to develop this Energy Plan — the same kind of modeling utilities use to decide what to build, when, and at what cost. In fact, Virginia Energy is now one of the few state energy offices in the country that can conduct this modeling in-house.

The Energy Plan models four primary pathways to explore the costs, benefits, and realities of each potential energy mix. Some models lean more on local energy — like rooftop solar and batteries. Other models build more nuclear power here at home and rely less on electricity from out of state. While others look at what would happen if solar deployment were limited or no new gas plants were built. Notably, each of the four models keeps Virginia on a path to net-zero emissions by 2050.

Further, the Energy Plan does not simply consider the cost of building new power — it considers the potential trade-offs that come with each modeled path forward so that they are part of the discussion from the start.

And, importantly, the Energy Plan also models the cost of walking away from our clean energy commitments. While some might question whether abandoning Virginia's Clean Economy Act or once again exiting the Regional Green House Gas Initiative could produce cost savings, the model quantitatively disputes this notion. Not only would taking these actions nearly double carbon emissions over the next two decades, doing so would also cost Virginians an estimated $145 billion in health impacts.

In producing this Energy Plan, we have clearly demonstrated that there are multiple paths forward that would allow Virginia to meet our clean energy goals, strengthen our energy mix, and power growth, investment and innovation.

In presenting four similar, yet different modeled paths forward, rather than one prescriptive path, we are recognizing that trade-offs exist with every energy choice, that unforeseeable circumstances may influence our options, and that advancing technologies will impact our choices and outcomes into the future.

With this recognition, the work of our Administration — in concert with the General Assembly — is to ensure Virginia is prepared to be nimble, responsive, innovative in delivering an affordable, reliable, clean energy future.

I want to extend my appreciation to the Virginians who helped inform this Energy Plan, the Virginia Energy team for their tireless work, modeling, and data analyses, and the members of my Administration who worked to deliver this 2026 Virginia Energy Plan.

I look forward to working with legislators, local leaders, businesses, utilities, and communities across the Commonwealth as we demonstrate all that is possible when we deliver affordable, reliable, and local clean energy to power a thriving economy — today and for generations to come.

Sincerely,Governor Abigail Spanberger

Virginia is at a pivotal moment.

Rapid growth in electricity demand is creating new opportunities for jobs, investment, and innovation, but it is also putting pressure on household bills, electric grid reliability, and the communities that host new infrastructure. The choices Virginia makes today will determine whether Virginia becomes a state for energy innovation and will shape whether families can afford their bills, whether businesses can grow with confidence, and whether communities share equitably in the benefits of growth.

The 2026 Virginia Energy Plan (VEP) presents a practical path forward to meet this moment. It aims to deliver tangible improvements today while building the energy system that Virginia needs for the future. For families, that means affordable and more predictable energy costs, comfortable and efficient homes, cleaner air, and dependable service. For businesses, it means affordable, available, reliable power that supports investment, innovation, and long-term growth. This effort is guided by a unified long-term vision. Deliver affordable, reliable, and local clean energy that works for every community in Virginia and powers a thriving economy—today and for generations to come.

As laid out in the Energy Plan, Virginia has multiple pathways towards a net zero power sector by 2050 by pursuing a Clean-First, Least-Cost approach: deploying technologies such as solar, storage, distributed energy resources (DERs), and demand flexibility, furthering energy efficiency, and improving utilization of the existing grid in the near term, while advancing clean firm resources — including advanced nuclear and offshore wind — to meet long-term needs. This approach positions the Commonwealth to lead in energy innovation, build homegrown supply chains and skilled careers, and deliver lasting local benefits.

The VEP focuses primarily on Virginia's electricity system and the path to a carbon free electric power sector under the Virginia Clean Economy Act (VCEA), with some additional consideration of transportation energy use and costs. Virginia's 2026 Comprehensive Climate Action Plan (CCAP) addresses economy-wide pathways to net-zero greenhouse gas emissions by 2050 in line with the Commonwealth's Clean Energy Policy goals.

Pillars


Three Interdependent Priorities

The Plan is built to produce meaningful outcomes for Virginia families and businesses: lower and more predictable energy costs, reliable service, healthier communities, stronger local economies, and an energy system that can meet Virginia's needs as they change.

Affordable Energy for Every Virginian

Lower energy burdens for households and businesses by improving efficiency, reducing system costs, and limiting exposure to volatile fuel prices.

Clean Firm Resources that Enable Virginia's Growth

Meet growing demand and clean-energy goals through proactive development of reliable clean firm power and transmission infrastructure.

Local and Sustainable Energy that Benefits Every Community

Expand homegrown, distributed, and diverse clean energy solutions that strengthen resilience, create local jobs, and deliver lasting economic and environmental benefits across Virginia.

Seven Strategies


Putting the Plan to Work for Virginia Communities

Seven mutually reinforcing strategies turn these pillars into an actionable roadmap for delivering an affordable, reliable, and local clean energy future for Virginia. Each includes near-term actions for the Administration, state agencies, regulators, utilities, local governments, and other partners.

1a. Advance competitive deployment of utility-scale storage and solar

Virginia's clean energy goals require solar, storage, transmission, and other energy assets to be planned more strategically and built more quickly and cost-effectively. Recent utility-proposed clean energy procurements have been higher cost than national averages, and much of the buildout still advances project by project.

Priority actions

  • Develop a state-led renewables marketplace to support competitive project developments: Explore moving Virginia Clean Economy Act compliance procurement to a state-led process that issues RFPs and evaluates utility-owned and third-party resources side by side on least-cost, least-risk criteria, without capping utility participation when utility projects win on economics.
  • Develop proactive statewide energy siting and transmission strategies with Virginia Economic Development Partnership (VEDP), State Corporation Commission (SCC) staff, utilities, and other stakeholders, accounting for impacts on important natural resources and environmental justice communities.
  • Prioritize greater utilization of unused interconnection capacity, including surplus interconnection and by-right storage at existing substations and interconnection points.
  • Scale up proactive local energy education and development support: technical assistance, model ordinances and revenue-sharing agreements, and flexible funding for safe, predictable solar and storage permitting.
  • Advance PJM market reforms, including making Energy Resource Interconnection Service (ERIS) a more useful option for developers.

Other Areas the plan addresses:

Reviewing statutory utility ownership requirements where they drive up costs, standardize and strengthen revenue-sharing for local benefits, support continued development of cost-effective and high-value transmission.

1b. Accelerate adoption of energy efficiency and consumer affordability programs

About 17% of Virginia households, more than 550,000 - face electricity burdens above 6% of income. Many live in homes with poor insulation and aging heating equipment, which limits what bill assistance alone can do. For these households, the most durable bill relief often comes from efficiency and strategic electrification upgrades.

Priority actions

  • Increase adoption and improve the effectiveness of ratepayer-funded energy efficiency programs, including using advanced metering data for targeted marketing and savings verification and promoting accessible financing with the Virginia Clean Energy Innovation Bank (VCEIB).
  • Maximize adoption of programs that provide immediate and lasting bill relief. Expand Virginia Energy Connect and coordinate outreach across Virginia Department of Social Services (DSS), Virginia Energy, utilities, and partners to maximize enrollment in programs such as Percentage of Income Payment Program (PIPP) and DSS energy crisis assistance.
  • Promote strategic electrification that is cost-effective at the local scale, reduces local pollution, and benefits low- to moderate-income households.
  • Advance Pay As You Save (PAYS), which installs energy solutions at no upfront cost, with repayments tied to the meter and limited to a portion of verified bill savings.

The Income-Qualified Energy Efficiency and Weatherization Task Force will issue more detailed recommendations; its final report is due September 30, 2027. Enable cost-saving energy solutions in public buildings. Increase awareness and adoption of Virginia Energy energy savings performance contracting and demand response programs and support solar plus storage across public facilities.

1c. Unlock DER deployment, aggregation, and market participation

Distributed energy resources (DER) and virtual power plants can aggregate solar, storage, smart thermostats, heat pumps, managed EV charging, and other flexible resources into dispatchable grid capacity. The Plan's modeling anticipates up to 10 GW of aggregated DER participation by 2045.

Priority actions

  • Address barriers to broad DER adoption, including modernizing Virginia's DER interconnection code for smaller projects.
  • Enhance statewide policies and new programs that enable DER aggregation and market participation in retail and PJM wholesale markets, with compensation for grid services and simpler, protected customer enrollment.
  • Prioritize low-conflict, dual-use sites such as brownfields, closed landfills, abandoned mines, industrial sites, parking lots, and warehouse roofs.

The DER Task Force will release more detailed recommendations in Fall 2026.

1d. Improve utilization of the existing grid

The grid has been built to serve a small number of peak-demand hours, leaving average year-round utilization nationally around 50%. The fastest and lowest-cost path to more capacity is often getting more value from infrastructure already built.

Priority actions

  • Promote adoption of advanced transmission technologies, including requiring transparent consideration of advanced transmission and grid-enhancing technologies before new supplemental transmission projects are approved.
  • Integrate DERs and virtual power plants into utility planning and operations.
  • Promote effective implementation of grid utilization metrics to support cost-effective system improvements.

This strategy focuses on making sure data centers pay the incremental costs they drive, align with responsible development and community priorities, and have clear pathways to support clean energy deployment.

Priority actions

  • Ensure data centers pay for the incremental costs they drive across generation, transmission, and distribution, in line with cost causation, such as through GS-5-type tariffs.
  • Require demand flexibility for new interconnections. Require large data centers to demonstrate onsite and offsite demand-flexibility capability, including the ability to reduce load (on-site or off-site) during grid emergencies, through battery storage, flexible computing, backup arrangements, or contracted demand-response resources. Build on Virginia's 2026 large-load demand-flexibility legislation and align program design with PJM's proposed large-load curtailment and capacity framework.
  • Remove barriers and create pathways to support clean energy deployment: Adjust policies that discourage data center customers from bringing their own clean capacity-such as adjusting minimum demand generation charges-so that verified clean energy procurement is not penalized, and establish channels for private capital from data centers to fund high-value DER and VPP deployments that lower bills for households, businesses, and public facilities, in line with recent legislation.ccxxxiv
  • Limit new BTM fossil generation, prioritizing non-combustion bridge power solutions where critical to meet near-term needs: Limit reliance on new BTM natural-gas generation for data centers. Where needed for near-term reliability and no feasible lower-emission alternative exists, prioritize non-combustion or zero-carbon alternatives-such as battery storage, linear generators or fuel cells using low-carbon fuels where available, and other qualifying technologies. Ensure that small-scale BTM combustion gas facilities (e.g., units <25 MW) are compliant with RGGI if aggregated together with other units <25 MW.
  • Promote responsible development and community benefits through the Data Center Accountability Framework: Continued data center development must align with all of Virginia's requirements for responsible development, beyond energy.

Other areas the Plan addresses

Transparency on data center cost allocation and infrastructure impacts; cleaner backup power; reuse of data center waste heat; and fiscal resilience for host localities.

Virginia's investor-owned utilities operate under a cost-of-service model in which their authorized return on equity is tied to capital spending rather than performance outcomes. As investment accelerates, Virginia has an opportunity to reward the most cost-effective path to reliability, not the largest capital outlay.

Priority actions

  • Promote cost-allocation and fuel-cost-sharing models that enhance affordability, including prioritizing cost-allocation reforms that more fully reflect cost-causation principles.
  • Pursue return-on-equity (ROE) reforms, including removing the voluntary 0.5% PJM participation adder while requiring continued PJM participation, and evaluating alternatives to the current ROE method.
  • Pursue debt-to-equity reforms that reduce costs for customers while keeping utilities financeable.

Other areas the Plan addresses

Performance-based regulation; and lower-cost public and federal financing where it reduces customer costs.

The Plan's modeling indicates that Virginia's long-term reliability and clean energy objectives will require substantial offshore wind, advanced nuclear, and long-duration energy storage: roughly 2,600-9,700 MW of offshore wind and 1,000-5,800 MW of advanced nuclear across modeled scenarios. Building the workforce, supply chains, sites, transmission, financing, and regulatory pathways must begin now.

Priority actions

  • Update Virginia Clean Economy Act renewable portfolio standard requirements so new dispatchable zero-carbon generation, such as fusion, fission, and geothermal, is explicitly included.
  • Require the SCC and utilities to evaluate zero-carbon generation before committing to long-lived fossil generation assets.
  • Accelerate responsible nuclear deployment, such as by designating a lead state office for siting assessments, pre-development work, permitting coordination, and community outreach.
  • Expand catalytic financing via VCEIB to support clean firm resources and energy innovation: Continue and expand VCEIB funding as a core tool for accelerating commercialization and deployment of innovative technologies.

Other areas the Plan addresses

Offshore wind readiness; a statewide nuclear siting study; nuclear financing structures that protect ratepayers; nuclear R&D; a regional nuclear compact; and fusion development.

Natural gas is expected to remain part of Virginia's near-term energy mix, supporting electric reliability and industrial uses. Virginia should first identify and better use available capacity in existing infrastructure and reduce methane emissions across the gas supply chain.

Priority actions

  • Encourage programs and markets that drive durable methane reductions, including working with data centers and other large users to fund upstream reduction projects.
  • Prioritize improved use of existing gas infrastructure before building new, through compressor upgrades, turboexpanders, targeted reinforcements, and operational improvements. New greenfield pipelines should be considered only where existing assets cannot reliably and cost-effectively meet verified needs.
  • Support capture of fugitive methane emissions from existing resources for productive use.

Other areas the Plan addresses

Biogas development tied to methane reduction; and mapping high-potential biogas sites.

Rising gasoline and diesel prices are increasing household and business transportation costs, and transportation remains Virginia's largest source of greenhouse gas emissions. The Plan calls for a broad affordability strategy that expands access to efficient vehicles, electric and hybrid options, reliable transit and rail, convenient charging, and transportation choices that reduce vehicle miles traveled.

Priority actions

  • Promote higher-efficiency vehicles, whether improved gas vehicles, hybrids, or EVs, through incentives, education, and fleet decisions.
  • Expand transportation demand management through planning that reduces vehicle miles traveled and supports walking, biking, transit, and transit-oriented development.
  • Expand state and private funding for transit and rail in rural, suburban, and urban areas.

Other areas the Plan addresses

Completing the National Electric Vehicle Infrastructure (NEVI) fast-charging program; public charging at state-owned properties; community charging; EV adoption; low-carbon fuels including sustainable aviation fuel; and more efficient state fleets.

The Plan's modeling suggests 5,000-20,000 annual construction jobs across sectors and upwards of 10,000-20,000 operating jobs by 2050. The buildout will also require expanded supply chains for grid equipment, storage, solar, offshore wind, advanced nuclear, and other technologies, an opportunity to attract manufacturing and build durable in-state industries.

Priority actions

  • Scale employer-led energy training, registered apprenticeships, credentials, and work-based learning.
  • Target energy supply chains as a priority sector for economic development. Coordinate the work of VEDP, VCEIB, and the Virginia Innovation Partnership Corporation (VIPC) to support early growth stage energy companies, energy supply chain, and energy generation to support economic development and energy generation in the Commonwealth.
  • Enhance coordination across energy planning and economic development capabilities across state agencies. Energy and economic development professionals must coordinate to identify strategic energy siting and generation opportunities and to make key economic development sites "energy ready."
  • Leverage the full suite of state tools to support emerging and mature energy industries. Coordinate and enhance state programs, using VCEIB and other financing tools for emerging businesses and projects, VIPC for commercialization and early-stage innovation, and VEDP for site development, company attraction, expansion, and workforce incentives. This can help ensure end-to-end support for a variety of industries, and present a coherent state strategy.

Other areas the Plan addresses

Sustain investment in scalable training and work-based learning for core occupations including electricians, lineworkers, HVAC technicians, welders, and controls technicians, through a coordinated statewide talent system led by Virginia Works with the Department of Education and Virginia Energy. Continue evaluating critical minerals opportunities and assessing commercially viable opportunities for responsible critical minerals extraction, processing, recycling, and related manufacturing in Virginia.

Built with Input from Across Virginia


How the Plan Was Developed

We heard from residents, businesses, community organizations, local governments, utilities, state agencies, and other stakeholders across the Commonwealth. That input helped test the assumptions behind the Plan, identify regional concerns, and shape its strategies.

3,003responses to the statewide public survey over seven weeks
6regional listening sessions in Abingdon, Hampton Roads, Danville, Arlington, Petersburg, and Richmond
20thematic virtual meetings and focused consultations
500+experts, advocates, business owners, and community leaders met during the research phase

What we heard

Affordability, reliability, and growing demand

Across regions, people consistently emphasized affordable and reliable energy and the need to prepare for rapid growth in electricity demand.

Data centers and rapid load growth

Data centers were the most frequently raised issue in written survey comments. About 64% of respondents mentioned them, most often citing demand growth, infrastructure costs, customer protections, and impacts on land, water, and communities.

Infrastructure planning and coordination

Participants asked for clearer demand forecasts, more transparent decisions, and safeguards so new large energy users pay the costs they create.

Efficiency, demand management, and grid modernization

Participants pointed to efficiency, weatherization, demand response, distributed solar, storage, and virtual power plants as ways to lower costs and strengthen reliability.

Workforce, supply chains, and financing

Participants also raised workforce shortages, equipment delays, financing barriers, and limited implementation capacity as challenges Virginia will need to address.

Community impacts and public trust

Public trust was the most frequently identified implementation barrier in the survey. Participants called for earlier engagement, clearer information, and more meaningful involvement from affected communities.

Where views differed

People often agreed on the problems Virginia needs to solve, but not always on the best solution. Views differed on technology choices, timing, state and local roles, and who should bear costs and risks.

Your Guide to Lower Energy Bills


Programs That Can Help Today

As Virginia works to make energy more affordable over the long term, there are also programs available today that can help households, businesses, and communities lower costs, improve efficiency, and make needed energy upgrades.

What comes next

Publishing the Plan is the beginning of the work, not the end. Many recommendations will require action by state agencies, regulators, the General Assembly, utilities, local governments, and other partners. State law also requires Virginia to report on progress and update the Plan over time. Several additional reports are forthcoming and will inform further actions.

  • Fall 2026DER Task Force report released
  • Winter 2026Governor's Comprehensive Economic Development Policy released
  • Fall 2027Income-Qualified Energy Efficiency and Weatherization Task Force report released