American Clean Power Association Backs Governor Spanberger As He Signs Energy Storage Bill To Lower Costs And Strengthen Virginia’s Power Grid

The American Clean Power Association (ACP) today welcomed the signing of House Bill 895 and Senate Bill 448 into law by Governor Spanberger, describing it as a significant bipartisan milestone for Virginia’s energy system. The legislation is aimed at reducing electricity price volatility, improving grid reliability, and accelerating the deployment of American-made clean energy, particularly through large-scale energy storage development.

The new laws arrive at a time when electricity demand is rising rapidly across the United States, alongside increasing pressure on system costs and grid infrastructure. In this context, House Bill 895 and Senate Bill 448 are positioned as forward-looking policy measures that provide a structured and durable framework for energy planning in Virginia.

According to the ACP, the legislation also serves as a potential model for other states seeking to balance affordability, reliability, and clean energy transition goals through targeted storage deployment.

A key focus of the legislation is the expansion of energy storage capacity in the state. The bills establish a target of 4,000 MW of energy storage capacity by 2030 and set an ambitious goal of reaching 16,000 MW of short-duration storage capacity by 2045.

In addition, the framework creates opportunities to support the development of long-duration energy storage technologies, which are increasingly viewed as critical for maintaining grid stability as renewable penetration grows. Industry stakeholders have emphasized that energy storage plays a central role in addressing the mismatch between electricity supply and demand.

By storing excess power and dispatching it during peak periods, storage systems help reduce price spikes, improve system flexibility, and enhance overall grid reliability. The legislation is therefore expected to unlock significant project development potential across both short- and long-duration storage segments.

Frank Macchiarola, Chief Advocacy Officer at ACP, highlighted that energy storage is one of the most effective tools available to improve both affordability and reliability in Virginia’s electricity system. He noted that Governor Spanberger’s leadership reflects a strong commitment to strengthening the state’s energy future, particularly through policies that support storage deployment and grid modernization.

He also emphasized that clear and ambitious policy direction from lawmakers will help accelerate project development, create jobs, and strengthen supply chains within the clean energy sector. The legislation was also recognized for its bipartisan support, with sponsors including Del. Richard Sullivan III and Sen. Lamont Bagby. According to ACP, such policy clarity is expected to unlock thousands of megawatts of storage projects that are already in development or planning stages, while also improving investment certainty for developers and utilities.

Virginia is currently ranked among the top five states in the United States for energy storage projects in the development pipeline, according to ACP’s 2025 Q4 Market Report. With the passage of this legislation, the state aims to further strengthen its position as a leading hub for clean energy deployment, while also supporting manufacturing growth and job creation across the energy sector.

Stakeholders from the broader energy policy ecosystem have also highlighted the importance of expanding procurement targets for both short- and long-duration storage. They argue that doing so will allow a wider range of technologies to be deployed, ensuring that the grid can effectively meet rising demand while maintaining reliability. This approach is also expected to provide developers with the long-term policy certainty needed to advance large-scale projects.

ACP has also pointed to broader economic implications of clean energy development in Virginia. A recent analysis by the organization estimates that, in the absence of new clean power capacity additions, the average Virginian could face an additional $5,200 in electricity costs over the next decade. This underscores the role of energy storage and clean energy deployment in mitigating long-term cost pressures on consumers.

Overall, the passage of House Bill 895 and Senate Bill 448 marks a significant step in Virginia’s energy transition strategy. The ACP has commended state leadership for advancing policies that aim to deliver a more reliable, affordable, and resilient electricity system, while also supporting the continued expansion of clean energy infrastructure across the Commonwealth.