Virginia Bets on Batteries to Cut Costs and Power Growth

ARLINGTON, VA – April 16, 2026

A strategic partnership between energy storage developer Lightshift Energy and the Blue Ridge Power Agency (BRPA) is set to reshape the energy landscape in rural Virginia. The collaboration will deploy a portfolio of advanced battery energy storage projects, promising to deliver approximately $100 million in savings over their lifetimes while bolstering the stability of the region's power grid.

The initial phase, already under construction and slated to come online in 2026, involves five distinct projects. These facilities are being developed in partnership with Central Virginia Electric Cooperative (CVEC), Craig-Botetourt Electric Cooperative (CBEC), and the City of Salem Electric Department. The initiative represents a proactive move by local utilities to gain control over volatile energy costs and enhance service reliability for their members and customers.

Battling Rising Costs for Rural Consumers

For years, rural electric cooperatives and municipal utilities have faced the challenge of rising wholesale power costs, particularly charges related to transmission and peak demand capacity. These costs, largely outside their direct control, are ultimately passed on to consumers. The new battery portfolio is designed to tackle this problem head-on.

Each of the five projects is a 5-megawatt battery system connected directly to the local distribution grid. The locations are strategically placed to maximize impact, with three sites in CVEC territory (Appomattox, Colleen, and Piney River), one in CBEC territory (New Castle), and one serving the City of Salem. During times when electricity demand and prices are highest, these batteries will discharge stored energy onto the grid. This action, known as "peak shaving," effectively lowers the utility's measured peak demand, leading to direct and substantial reductions in the capacity and transmission fees they must pay to the broader PJM market.

“We are excited to see these facilities come online and produce savings for the members and customers of CBEC, CVEC, and Salem,” said Alice Wolfe, General Manager of BRPA, in a statement. “Rising transmission and capacity costs have been a source of concern for some time, and these new battery projects will begin to control these costs. The staff, boards, and council of CBEC, CVEC, and Salem deserve credit for their thoughtful and committed leadership.”

The projected $100 million in lifetime savings is not a theoretical figure. It is based on a model already proven effective in the state. A similar, earlier project by Lightshift Energy with Danville Utilities demonstrated that battery storage could generate over $40 million in savings for the city, directly contributing to lower and more stable electricity bills for every household and business.

A Grid Under Pressure from Surging Demand

The timing of this initiative is critical. The PJM Interconnection, the regional transmission organization that manages the electric grid for Virginia and 12 other states, is facing significant strain. A combination of retiring older power plants and unprecedented demand growth has created what the press release calls a "shortage of power supply," leading to increased price volatility and concerns about future reliability.

A major driver of this new demand is the explosive growth of data centers, particularly in Virginia. These massive facilities require a constant and enormous supply of electricity, placing immense pressure on local and regional grid infrastructure. The battery portfolio serves as a crucial tool to manage this growth, providing a flexible and rapidly deployable source of peak power capacity that helps make room on the grid for these new loads without destabilizing the system for existing customers.

By adding clean capacity exactly where it's needed on the distribution network, the projects help fortify the grid against disruptions and provide the resource adequacy required to support continued economic development in the region.

The 'VPP+' Advantage: A New Model for Grid Modernization

This portfolio is more than just a collection of individual projects; it represents a novel approach to grid management that Lightshift Energy calls "VPP+." The term refers to a Virtual Power Plant, but with an emphasis on coordinating multiple megawatt-scale, distributed assets to operate as a single, cohesive resource.

Unlike massive, centralized power plants or smaller, behind-the-meter residential batteries, the VPP+ model strikes a unique balance. The 5 MW projects are large enough to achieve economies of scale and have a meaningful impact on the grid, but small and distributed enough to be deployed quickly and with less complex permitting than large-scale transmission projects. This allows for the rapid delivery of new capacity to the areas that need it most.

“As Virginia continues to increase its appetite for energy storage, electric cooperatives and municipal utilities are uniquely positioned to lead on innovative applications that directly benefit their members,” noted Mike Herbert, Co-founder and Managing Partner at Lightshift Energy. “By working together with BRPA, CVEC, CBEC, and Salem, this coordinated effort exemplifies how portfolios of distribution-connected storage can offer not only significant savings to the participating utilities, but also fast and cost-effective capacity during a time that the PJM market is scrambling to bring on new resources and keep electricity prices low.”

This innovative, fleet-based deployment demonstrates a scalable pathway for modernizing the grid. It empowers local utilities to take an active role in securing their energy future, leveraging advanced analytics and value-stacking to ensure these battery assets provide the maximum possible benefit to their communities. This partnership serves as a powerful blueprint for how rural and municipal utilities across the country can harness technology to ensure affordable, reliable power for decades to come.