Renewables In Virginia: How The General Assembly Is Powering A Clean Energy Future

This is the first installment of a three-part series looking into the state of renewable energy in Virginia. This week, Powered By Facts is taking a look at recent laws the General Assembly has passed that prepare the state for a transition to a clean energy grid. Stay tuned for next week’s post, which will detail the various options Virginia has for siting renewable energy facilities. 

Renewable energy sources generated just 6% of Virginia’s electricity in 2019. Thanks to a series of laws passed since then, this disappointing statistic is set to be lost to history. With current legislation in place, 100% of Virginia’s electric grid is expected to be powered by renewable energy sources by 2050. 

Recognizing the enormous environmental and economic benefits that renewable energy offers, the General Assembly has been working to bring clean energy policy to Virginia. Though there is still much work to be done on the way to a carbon-free state, the General Assembly has made significant progress in the last two years in expanding access to renewables for energy consumers. Here’s a look at some of the most consequential clean energy policies the General Assembly has approved in recent sessions.

With the 2020 passage of the Clean Economy Act, Virginia became the first Southern state to commit to a carbon-free future. This monumental bill set a number of goals for energy generation in the state over the course of the next two decades. Most notably, the Clean Economy Act requires Dominion Energy to be 100% carbon-free by 2045, and for Appalachian Power to be 100% carbon-free by 2050. 

To reach these ambitious goals, these energy utilities will need to adopt renewable energy sources such as wind and solar. The Clean Economy Act is clear in specifying how much energy will be generated and stored by these two renewable sources. It’s in the public interest, the law says, for 5,200 megawatts of energy to be generated by offshore wind by 2034. The law also promotes solar and onshore wind energy generation, specifying that the generation of 16,100 megawatts from these sources is also in the public interest. On average, one megawatt of solar energy is capable of powering up to 190 homes, and a little under two megawatts of wind energy can power over 460 homes. All of this clean energy needs to be stored somewhere; that’s why the Clean Energy Act also mandates that Virginia’s energy utilities develop facilities capable of storing up to 3,100 megawatts. 

It’s not just the Clean Economy Act that is shaping Virginia’s clean energy future. During the 2020 and 2021 General Assembly sessions, the legislature passed bills that incentivize the adoption of renewables and give more power to the consumer in deciding how to shop for energy. 

Prior to the passage of HB 2048 earlier this year, Virginia energy consumers were prevented from shopping for renewable energy from third party suppliers if their energy utility already offered renewables. Now, however, thanks to the passage of this bill, Virginians are able to choose who they purchase renewables from. Beyond offering a choice to consumers, this law also allows for renewable energy companies to offer their services to Virginians, breaking down Dominion and Appalachian Power’s monopoly on renewables and creating a more competitive energy market. The benefits to the consumer are clear. 

A law that passed in 2020 required the State Corporation Commission to establish a shared solar program in Virginia. With shared solar, consumers purchase energy through a subscription that provides access to energy generated by local solar facilities. A model of distributed energy, the bill keeps energy generation local, inexpensive, and clean all while providing Virginians with another choice for energy delivery. Dominion Energy recently proposed a minimum monthly bill of $74.90 per month for shared solar consumers; critics say this is far too expensive and will hinder the adoption of solar energy in Virginia. 

Coal-fired plants currently operating in Virginia need to be shut down by 2024, as specified by the Clean Economy Act. Rather than allowing for coal mines to sit idle, HB 1925 sets up the Brownfield and Coal Mine Renewable Energy Grant Fund, which provides grants up to $35 million per year to renewable energy projects that are sited on previously coal mined lands. While promoting the use of renewable energy, this fund helps communities formerly dependent on coal bring in secure clean energy jobs. 

Finally, another 2021 law expanded access to solar power purchase agreements in Virginia. A power purchase agreement allows for a landowner to provide space for a developer to build and operate a solar facility. This allows for cheaper energy for the landowner while allowing the developer to sell the energy generated by the facility. Allowing for more distributed energy opportunities, this law presents energy consumers with more options while bolstering clean energy efforts in Virginia.

The General Assembly has made considerable progress in jumpstarting Virginia’s transition to clean energy during recent sessions. There is still work to be done, however, and future sessions will also need to see the prioritization of clean energy policy in order to meet the goals laid out in the Clean Economy Act.