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Virginia (US-VA)

Market Type: Deregulated (Retail Choice)
SSS Relevance: ⭐⭐⭐ High
Grid Carbon Intensity: ~283 gCO₂/kWh

SSS Factors: significant nuclear capacity, hydroelectric resources

1. Overview​

Virginia's electricity market is characterized by a regulated monopoly structure dominated by two major investor-owned utilities (IOUs) and operates under the oversight of the State Corporation Commission (SCC) [3]. Nearly 99% of the state's customers participate in the PJM Interconnection regional wholesale electricity market [3]. The state is currently the largest net importer of electricity in the U.S., receiving approximately 36% of its power from the regional grid as of 2023 [3].

The generation mix is transitioning from fossil fuels to renewable energy, though it remains heavily reliant on traditional sources. As of 2024, the energy mix consists of:

  • Natural Gas: ~55%–60%
  • Nuclear: ~32%
  • Renewables: ~11.38% (a significant increase from 6.62% in 2020) [1][3]
  • Coal: ~2%–4% [3]

This transition is driven by the Virginia Clean Economy Act (VCEA), which mandates that Dominion Energy achieve 100% carbon-free generation by 2045 and Appalachian Power reach the same goal by 2050 [1][3]. Key upcoming projects include the Coastal Virginia Offshore Wind (CVOW) project, a $10.7 billion investment expected to power up to 660,000 homes by 2027 [3].

A critical dynamic in Virginia's market is surging demand driven by Northern Virginia, which hosts the world's largest concentration of data centers. These facilities accounted for 21% of state electricity demand in 2022, with projections suggesting consumption will exceed 7 GW by 2032 [2][3]. This load growth creates pressure to accelerate renewable deployment to meet percentage targets while maintaining grid stability. As of early 2026, Virginia's grid carbon intensity is approximately 347 gCO2eq/kWh [2].

2. Market Structure​

Virginia's electricity market is characterized by a regulated retail sector operating within a regional wholesale market managed by a Regional Transmission Organization (RTO).

Wholesale Market and Grid Operations​

The high-voltage transmission grid and wholesale electricity market for Virginia are managed by PJM Interconnection, which serves as both an Independent System Operator (ISO) and an RTO 1. Virginia law (Code § 56-579) mandates that incumbent utilities transfer control of transmission assets to a regional entity to ensure reliability and non-discriminatory access 2.

Retail Market Structure​

The state operates under a largely regulated model. Following a brief attempt at full deregulation in the early 2000s, Virginia effectively restored the traditional monopoly utility model with the 2007 "Re-Regulation Act" 3. As of 2026, most customers must purchase electricity from their incumbent utility, though specific exceptions for retail choice exist:

  • Large Commercial & Industrial (C&I) Customers: Businesses with an annual demand of 5 megawatts (MW) or more are eligible to shop for competitive providers 3.
  • Customer Aggregation: Two or more non-residential customers may petition the Virginia State Corporation Commission (SCC) to aggregate their loads to meet the 5 MW threshold 4.
  • 100% Renewable Energy Choice: Any customer (residential included) may purchase 100% renewable energy from a Competitive Service Provider only if their incumbent utility does not offer an SCC-approved 100% renewable energy tariff 5.

Recent legislative discussions (2025–2026) have focused on reforms such as reducing the five-year notice period for large customers to return to default service 6 and addressing grid infrastructure cost allocations for data centers 7. Concerns persist regarding potential cost shifting from large corporations to residential customers under deregulation proposals 8.

Utility Types​

The market is served by three primary categories of utilities, all regulated by the Virginia State Corporation Commission (SCC) 9:

  • Investor-Owned Utilities (IOUs): Privately-owned, for-profit corporations serving urban and suburban areas. Major providers include Dominion Energy Virginia (the largest utility), Appalachian Power, and Old Dominion Power 10.
  • Electric Cooperatives: Non-profit, member-owned entities serving roughly one-third of the state, primarily in rural areas. Examples include Northern Virginia Electric Cooperative (NOVEC) and Rappahannock Electric Cooperative 11.
  • Municipal Utilities: Government-owned utilities operated by localities. There are 16 municipal systems in the state, such as those in Danville, Harrisonburg, and Manassas, often organized through the Municipal Electric Power Association of Virginia (MEPAV) 12.

3. Clean Energy Policy​

Virginia's primary clean energy policy is defined by the Virginia Clean Economy Act (VCEA) of 2020, which transitioned the state from a voluntary renewable goal to a mandatory Renewable Portfolio Standard (RPS) [1][2]. The law legally binds the state's two largest investor-owned utilities to achieve 100% carbon-free electricity by mid-century, making Virginia the first Southern state to enact such a requirement [2].

Key Mandates and Timelines​

The VCEA establishes distinct timelines and benchmarks for the state's major utilities:

  • Dominion Energy: Required to reach 100% carbon-free electricity by 2045 and achieve 45% renewable energy by 2030 [1][2].
  • Appalachian Power (APCo): Required to reach 100% carbon-free electricity by 2050 [1][2].

To support these targets, the law mandates the development of significant new capacity, including:

  • 16,100 MW of utility-scale solar and onshore wind.
  • 5,200 MW of offshore wind.
  • 3,100 MW of energy storage by 2035 [2].

Additionally, the VCEA mandates the retirement of nearly all coal-fired plants by 2024 and phases out most fossil fuel generation by 2045 [2].

Compliance and Enforcement​

Utilities meet annual RPS benchmarks by retiring Renewable Energy Certificates (RECs) from eligible sources, including solar, onshore and offshore wind, certain hydroelectric facilities, geothermal, biomass, and landfill gas. Notably, nuclear energy is excluded from meeting RPS requirements [1].

The Virginia State Corporation Commission (SCC) oversees the program. Utilities that fail to meet annual targets must pay deficiency payments (compliance fees), set at approximately $78.83 per MWh for distributed solar/wind and $47.30 per MWh for other sources as of 2026. Utilities may recover these compliance costs from customers via specific rate riders, such as Rider RPS [1].

Recent Developments​

  • RGGI Re-entry: In early 2026, Virginia finalized plans to rejoin the Regional Greenhouse Gas Initiative (RGGI), a market-based cap-and-trade program to reduce carbon pollution from power plants [2][3].
  • Legislative Updates: The 2025 legislative session passed the Community Access to Renewable Energy (CARE) package, increasing rooftop solar capacity and establishing a Virtual Power Plant pilot program [2].
  • Energy Demand Challenges: There is ongoing debate regarding the impact of rapid growth in AI data centers in Northern Virginia on energy demand, which may complicate the timeline for achieving clean energy targets [2][3].

Current Energy Mix Context​

As of 2022–2024, Virginia's energy mix remains heavily reliant on fossil fuels, with natural gas accounting for approximately 54–57% of supply. Renewables have grown to roughly 9–11% (up from 1.3% in 2020), while nuclear provides ~30–31% of the state's "baseload" power [3].

4. Utility Landscape​

Virginia's electricity market is served by a mix of investor-owned utilities (IOUs), electric cooperatives, and municipal utilities. The three primary IOUs regulated by the State Corporation Commission (SCC) serve the majority of the state's customers:

  • Dominion Energy Virginia: The largest utility in the state, serving approximately 2.5 to 3.6 million customers (sources vary on specific counts). It dominates the most densely populated regions, including Northern Virginia, Richmond, and Hampton Roads.
  • Appalachian Power (APCo): A subsidiary of American Electric Power (AEP), it is the second-largest utility, serving more than 500,000 customers primarily in Western Virginia, including Roanoke and Lynchburg.
  • Old Dominion Power Company: Operated by Kentucky Utilities (a subsidiary of PPL Corporation), serving Southwest Virginia.

The state is also served by 13 electric cooperatives, which are not-for-profit, member-owned organizations providing power to approximately one-third of the state, largely in rural and suburban areas. Notable co-ops include:

  • Northern Virginia Electric Cooperative (NOVEC)
  • Rappahannock Electric Cooperative (REC)
  • Shenandoah Valley Electric Cooperative (SVEC)

Additionally, there are 16 municipal electric utilities, such as Danville Utilities, Harrisonburg Electric Commission, and Manassas Utilities, which are operated by local governments 12.

Infrastructure and Generation

  • Import Status: Virginia is the top net recipient of electricity in the U.S., importing approximately 36% of its total supply 13.
  • Generation Mix (2023): In-state generation is primarily composed of natural gas (55%), nuclear (32%), and renewables (12%) 13.
  • Largest Plant: The Bath County Pumped Storage Station is the largest power plant in the state by capacity (3,015 MW) 13.

5. SSS-Eligible Resources​

ResourceTypeCapacity (MW)SSS EligibleNotes
Bath County Pumped StorageNuclear3,003✅ YesOperating nuclear
storageHydro3,003✅ Yes (pre-RPS)Legacy hydro

6. EAC/REC Registry Infrastructure​

Virginia utilizes the PJM Generation Attribute Tracking System (GATS) as its official electronic platform to create, track, and retire Energy Attribute Certificates (EACs) and Renewable Energy Certificates (RECs) 1414. Administered by PJM Environmental Information Services (PJM-EIS), this system serves as the primary compliance tracking mechanism for the state's Renewable Portfolio Standard (RPS) under the Virginia Clean Economy Act (VCEA) of 2020 1414.

While the Virginia State Corporation Commission (SCC) is mandated to maintain a registry, it operates in conjunction with PJM-GATS rather than as a standalone ledger 14. The SCC oversees the certification process, assigning unique State Certification Numbers to generating units registered within GATS 14. To ensure accuracy, the state requires revenue-grade meters for recording energy production 14.

The VCEA established two primary compliance categories tracked within this infrastructure:

  • Virginia RECs (Ren RECs): A broad category for solar, wind, biomass, geothermal, and low-impact hydropower.
  • Virginia Distributed RECs (DG RECs): Specifically for in-state distributed solar generation under 1 MW, often referred to as SRECs 15.

System participation varies by scale: while utilities and large generators may manage accounts directly, small residential and commercial system owners typically use registered aggregators or brokers to manage and sell their certificates within GATS 1414. Standardized contracts for Virginia compliance RECs are traded on exchanges such as Nodal Exchange and ICE 14.

7. Grid Emissions​

Generation Mix​

Scope 2 Reporting​

  • SB 253 requires Scope 2 reporting for companies >$1B revenue

Source: EPA eGRID, EIA, state regulatory filings

References​

Sources & Last Updated​

Research Date: 2026-03-10
Data Sources: EIA, EPA eGRID, state regulatory filings, SerpAPI research aggregation

This page was generated using automated research and may contain inaccuracies. Verify critical data with primary sources.

Footnotes​

  1. The George Washington University +1, Federal Energy Regulatory Commission (.gov) ↩

  2. The George Washington University ↩

  3. Dominion Energy ↩ ↩2

  4. Project Finance NewsWire ↩

  5. Canary Media ↩

  6. R Street Institute ↩

  7. YouTube ↩

  8. Cardinal News ↩

  9. Virginia.gov ↩

  10. Blue Ridge Power Agency +2, Virginia Places ↩

  11. Virginia.gov +2, Virginia SCC (.gov) ↩

  12. Virginia Places ↩ ↩2

  13. U.S. Energy Information Administration (EIA) (.gov) ↩ ↩2 ↩3

  14. SCC.Virginia.gov ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10

  15. Flett Exchange ↩