Virginia Enacts Landmark Energy Storage Expansion Bills
Summary — Virginia enacted new legislation that expands energy storage requirements for Dominion Energy Virginia and Appalachian Power Company as part of the state’s broader effort to address rising electricity demand, grid reliability and renewable energy integration. The law increases statewide storage targets, creates Virginia’s first long-duration energy storage requirements, and directs new safety, permitting, and regulatory initiatives that could shape future energy storage development through 2045.
During the 2026 legislative session, the Virginia General Assembly enacted House Bill 895 and Senate Bill 448 substantially expanding Virginia’s energy storage procurement requirements for Dominion Energy Virginia and Appalachian Power Company (“APCo”). Governor Abigail Spanberger signed the legislation in April 2026. The new legislation continues Virginia’s broader effort to address rising electricity demand, grid reliability concerns, and renewable integration challenges associated with electrification and data center growth.
The new legislation amends Virginia’s existing storage framework under the Virginia Clean Economy Act of 2020 by:
- dramatically increasing utility-scale energy storage targets;
- creating Virginia’s first statutory long-duration energy storage requirements;
- directing the development of model local ordinances for energy storage siting;
- requiring additional Virginia State Corporation Commission (“SCC”) proceedings regarding safety, procurement, and technology demonstrations; and
- extending procurement timelines through 2045.
The legislation takes effect July 1, 2026.
Expanded Storage Procurement Targets
Prior Virginia law required Dominion and APCo to petition the SCC for approval to construct or procure specified amounts of energy storage resources. The new legislation substantially expands those mandates and separates targets into short-duration and long-duration storage categories.
| New Statutory Energy Storage Targets | ||||
|---|---|---|---|---|
| Utility | Prior Statutory Target | New Short-Duration Energy Storage Target | New Long-Duration Energy Storage Target1 | Compliance Deadline / Interim Milestones |
| Dominion Energy | 2,700 MW | 16,000 MW | 4,000 MW2 | By 2045, with interim procurement requirements of (i) 4,000 MW of short-duration by December 31, 2030, and (ii) 2,000 MW of long-duration by December 31, 2035 |
| Appalachian Power | 400 MW | 780 MW | 520 MW3 | 2040 for short-duration and 2045 for long-duration |
The legislation defines:
- Short-duration energy storage as storage resources with less than 10 hours of generation capacity at full nameplate output; and
- Long-duration energy storage as storage resources capable of operating for 10 or more hours at full nameplate capacity.
The aggregate statewide targets now exceed 20 gigawatts of storage capacity, representing one of the largest state-level storage mandates in the United States.
Long-Duration Energy Storage Demonstration Program
The new legislation also establishes a regulatory framework for long-duration storage technologies. The legislation directs the SCC to:
- conduct a technology demonstration program for long-duration storage resources;
- evaluate whether long-duration technologies are commercially viable and reasonably achievable; and
- enter a final order by March 1, 2031 regarding the feasibility of the statutory targets.
Certain portions of the long-duration procurement obligations become operative only after the SCC determines that the targets are reasonably achievable. Specifically, if the SCC determines by March 1, 2031 that the long-duration targets are not reasonably achievable given available technology, the Commission may modify the procurement timeline or adjust target levels accordingly.
The SCC must also approve an independent auditor to assist in developing procurement criteria and reviewing requests for proposals relating to new storage resources.
Model Ordinances and Siting Guidance
The legislation also directs the Virginia Department of Energy, in consultation with the Virginia Department of Environmental Quality and the Virginia Department of Fire Programs, to develop model ordinances suggested for use by localities in their regulation of energy storage projects by December 1, 2026.
The legislation further requires stakeholder work groups involving:
- utilities,
- local governments,
- technical experts,
- environmental organizations, and
- community representatives.
These model ordinances are intended to serve as guidance for localities and are likely to influence future local permitting practices for battery energy storage systems. Once adopted, the model ordinances are to be updated every three years.
SCC Safety Proceedings
HB 895 additionally requires the SCC to initiate a technical conference by September 1, 2026 concerning nationwide safety standards and practices for energy storage development, including evaluation of applicable industry standards such as National Fire Protection Association 855 Standard for the Installation of Stationary Energy Storage Systems. Developers should expect additional regulatory guidance and potentially evolving permitting standards following the SCC proceeding.
Possible Implications for Developers, Utilities, and Large Load Customers
The new legislation is anticipated to accelerate energy storage deployment across Virginia and expand procurement opportunities.
Key implications are anticipated to include:
- increased utility-scale storage solicitations by Dominion and APCo to meet the new targets;
- increased demand for long-duration storage technologies; and
- evolving local zoning and fire code requirements, including model ordinance.
The legislation also reflects Virginia policymakers’ growing focus on grid reliability and load growth associated with data centers and electrification trends.
Interested stakeholders should closely monitor forthcoming SCC proceedings, utility integrated resource plans (IRP), energy storage procurements, and rulemaking and upcoming model ordinance initiatives.
For more information about the new legislation, contact the author listed above or any member of the Williams Mullen Energy Team.
1The long-duration energy storage procurement requirements are subject to review by the SCC, including determinations regarding technical viability and the reasonable achievability of the applicable targets under the legislation. Accordingly, implementation of certain long-duration storage targets may depend on future SCC findings and related regulatory proceedings.
2Of such 4,000 MWs, (i) 2,000 MWs shall have between 10 and 24 hours of storage capacity and 2,000 MWs should have more than 24 hours of storage capacity, and (ii) at least 20% shall be located in the coalfield region of the Commonwealth (as described in Va. Code § 15.2-6002).
3Of such 520 MWs, 260 MWs shall have between 10 and 24 hours of storage capacity and 260 MWs shall have more than 24 hours of storage capacity.
Key Takeaways
- Major Expansion of Energy Storage Targets – Virginia dramatically increased utility-scale energy storage procurement requirements, creating one of the largest state-level storage mandates in the country.
- Long-Duration Storage Requirements Added – The legislation establishes Virginia’s first statutory requirements for long-duration energy storage systems capable of operating for 10 or more hours.
- New Local Siting and Permitting Guidance – State agencies will develop model ordinances for energy storage projects, which are expected to influence future local zoning and permitting standards.
- Additional SCC Oversight and Safety Reviews – The SCC will conduct new proceedings related to safety standards, procurement rules and long-duration storage technology demonstrations.
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