State lawmakers across the United States made efforts in Q2 2025 to modernize electric grids, found the 50 States of Grid Modernization: Q2 2025 Quarterly Report from the NC Clean Energy Technology Center (NCCETC).
While “grid modernization” does not have a universally accepted definition, the report’s authors said they considered it to include legislative and regulatory actions addressing:
- smart grid and advanced metering infrastructure,
- utility business model reform,
- regulatory reform,
- utility rate reform,
- energy storage,
- microgrids, and
- demand response.
Because 2025 is an odd year, every state had a bill session this past spring. Almost 300 bills that lawmakers introduced were related to grid modernization, the report noted. The most common state action related to grid action during Q2 2025 involved energy storage deployment (77), followed by overall utility business model reforms (37), smart-grid technology deployment (35), interconnection rules (34) and performance-based regulation (38), according to the report.
“This quarter, there was widespread effort to apply technologies to overcome grid issues,” said Vincent Potter, project manager at NCCETC. “Policymakers ordered utilities to integrate – or at least consider – alternative and emerging technologies like energy storage, grid-enhancing technologies, and non-wires alternatives when planning for their transmission and distribution systems.”
State policy developments
According to the report, Virginia’s mandate requiring Dominion Energy to develop a 450 MW virtual power plant pilot was the most notable policy development for grid modernization made during Q2 2025. The bill, which was signed into law by Gov. Glenn Youngkin in May, requires the State Corporation Commission to begin developing a permanent program after the pilot ends.
Other notable policy developments included:
- New Jersey regulators launching new energy storage incentive program;
- State agencies in Maine and Virginia releasing performance-based regulation studies;
- Connecticut and Maryland regulators proposing distribution system planning rules; and
- The Hawaii Public Utilities Commission declining to pursue implementation of its advanced rate design.
Grid modernization trends
State lawmakers implemented rules governing microgrid deployment, the report said. For example, Oregon lawmakers passed legislation to allow municipalities, businesses and communities to build, own and operate microgrids. West Virginia signed a bill into law to ease restrictions on microgrid development in hopes to attract more data centers to the state.
Several states also passed bills to mandate energy storage procurement. New Jersey, for example, passed a bill ordering the Board of Public Utilities to offer incentives for 1,000 MW of transmission-connected energy storage, which currently awaits the governor’s signature. Hawaii signed a bill into law ordering the Public Utilities Commission to develop tariffs for various distributed generation programs, which must include riders for energy storage.
States also passed legislation for integrating technology requirements into planning processes for distribution and transmission systems, the report said. For example, Maine’s governor signed two bills into law to align regulatory reviews of grid-enhancing technologies with integrated resource planning and to use utility grid plans when procuring energy storage or considering advanced transmission technologies.
NCCETC is a public service center administered by the College of Engineering at North Carolina State University, with a mission to advance a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies, practices, and policies. The Center is known for its DSIRE database that tracks incentives in all 50 states for renewable energy and energy efficiencies.
Also read: State lawmakers convene to tackle grid strain, data center energy demands
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