The Grid-Edge: NASEO-NARUC Grid-Interactive Efficient Buildings Working Group

In states across the nation, the electricity system is changing, presenting challenges and opportunities for the delivery of reliable, clean, and affordable power to America’s homes, businesses, and institutions. As variable renewable generation and distributed energy resources (DERs)—including energy efficiency, demand response, onsite generation, energy storage, and electric vehicles—grow, the management of electricity is becoming more complex.

Fortunately, advancing technologies open the prospect for more flexible management of building and facility energy loads to benefit occupants, owners, and the grid. The purpose of advancing Grid-interactive Efficient Buildings (GEBs) and, more broadly, demand flexibility (DF) is to optimize energy management by utilizing sensors, analytics, and smart controls to best serve the needs of occupants while considering the grid and external conditions (such as peak loads and weather). Greater optimization of the significant energy demand and supply functions that buildings offer – on an automated basis – has far reaching electricity policy and regulatory implications for State Energy Offices, Public Utility Commissions, utilities, building owners and occupants, technology and service providers, and and investors. Flexible load management can:

• Lower costs, enhance resilience, and reduce emissions
• Reduce peak loads, moderate the ramping of demand, and provide grid services
• Enhance energy efficiency and integrate distributed and renewable energy resources.

The fundamental question that arise from this opportunity are:

• How can we optimize facility interactions with the grid?
• How can states fashion policies, programs, and regulations to advance such optimization through GEBs?
• What are the roles for states, facility owners and operators, utilities, product and service providers, and others?

To help states approach these questions, the National Association of State Energy Officials (NASEO) and the National Association of Regulatory Utility Commissioners (NARUC) established the NASEO-NARUC Grid-interactive Efficient Building Working Group, with the support of the U.S. Department of Energy (DOE) Building Technologies Office.

Through the GEB Working Group, State Energy Officials and state utility regulators can explore GEB/DF technologies and applications; identify opportunities and impediments (technical and non-technical); identify and express state priorities and interests; inform policy, planning, programs and regulation; consider unregulated electric sector investments and implications; and advance GEB/DF road map and pilot options.

GEB Working Group activities include state interviews, webinars, and exchanges. Private sector and non-governmental organizations are also being engaged. A state GEB briefing paper and other resources have been and are being developed developed. The resources page also includes links to other NASEO, NARUC, and external papers, presentations, webinars, and other items. NASEO and NARUC are partnered with DOE and the National Laboratories to provide demand flexibility/GEB-related technical assistance (TA) to Working Group states. TA focus areas have included state and public buildings, pilot projects, state and regional GEB/DF potential, and valuation of GEB/DF grid services. Please contact geb@naseo.org with questions.

National GEB Roadmap: U.S. DOE, A National Roadmap for Grid-interactive Efficient Buildings (May 2021)

U.S. DOE, Connected Communities (overview presentation)

NASEO, "Demand Flexibility and Grid-interactive Efficient Buildings 101" (September 2022) and "Grid-interactive Efficient Buildings: State Briefing Paper" (October 2019)

Calendar:

Webinars are open to all. Working Group forums are limited to states and territories. Please contact geb@naseo.org with questions.

• Postponed - NASEO-NARUC Grid-interactive Efficient Buildings Working Group webinar: Sourcing Distributed Energy Resources for Distributed Grid Services – New date and time TBD: Authors of the recent DOE report, Sourcing Distributed Energy Resources for Distributed Grid Services, will discuss the evolving role of DERs including EV charging to provide grid services for managing local distribution needs affordably. Shifting from traditional, bulk-power-focused DER use to local distribution-targeted applications is essential for deferring costly distribution infrastructure upgrades while ensuring grid reliability. More details and registration link pending.

Recent:

• Vehicle-Grid Integration Council (VGIC), Utility Collaboration Forum (UCF), Best Practices for Vehicle-Grid Integration Program and Pilot Development (March 2025) provides essential guidance for utilities and regulators designing and implementing VGI initiatives. Register here for May 29, 2025, 1:00 pm ET webinar.
• Energy Systems Integration Group (ESIG), Gaps, Barriers, and Solutions to Demand Response Participation in Wholesale Markets (January 2025) examines why demand response participation remains limited in wholesale markets and proposes actionable solutions to unlock its full potential. (Landing page links to full report, executive summary, policy brief, and appendix.)
• Data Center Demand Flexibility items:
  • Electric Power Research Institute (EPRI), DCFlex Initiative will demonstrate how data centers can support and stabilize the electric grid while improving interconnection and efficiency.
  • International Energy Agency (IEA), Energy and AI (April 2025): includes discussions of data center locational and operational flexibility (sections 2.6.2 and 2.6.3) and AI for grid and end-use optimization (including DERs, flexibility; in chapter 3)
  • N. Wang Esram and C. Assadi, Future-Proof AI Data Centers, Grid Reliability, and Affordable Energy: Recommendations for States, ACEEE, (April 2025)
  • T.H. Norris, et al., Rethinking Load Growth: Assessing the Potential for Integration of Large Flexible Loads in US Power Systems, Duke University, Nicholas Institute for Energy, Environment, and Sustainability, (February 2025)
  • K. Baranco, et al., Fast, scalable, clean, and cheap enough: How off-grid solar microgrids can power the AI race (December 2024)
  • Sidewalk Infrastructure Partners Data Center Flexibility: A Call to Action

• SEPA, Decoding DERMS: Options for the Future of DER Management (March 2025) explore how DERMS can provide real-time monitoring, control, and coordination of both front-of-the-meter (FTM) and behind-the-meter (BTM) assets to enable VPPs and provide reliable flexibility by leveraging DERs to shift and shape load.

• NYSERDA announced a $5 million Enabling Innovative Clean Energy Building Solutions (PON 5982) funding opportunity to support innovative building solutions in New York that can be demonstrated in existing single-family, multifamily, and small to medium commercial buildings. Eligible focus areas include building envelope, clean heating and cooling, intelligent grid interactive building controls, low-global warming potential refrigerant applications and leak detection, and thermal storage. Proposals are due on June 4, 2025, by 3:00 p.m. ET and an informational webinar will occur on April 10, 2025, at 1:30 p.m. ET (registration link). The solicitation and related information can be found on here.

• New York’s Grid Flexibility Potential (January 2025) - Brattle energy analysts prepared a study for the New York State Energy Research & Development Authority (NYSERDA) and the New York Department of Public Service (NY DPS) that assesses the cost-effective, achievable potential for grid flexibility in the state in 2030 and 2040.

• Smart Electric Power Alliance (SEPA) and North Carolina Clean Energy Technology Center, 50 States of Virtual Power Plant and Supporting Distributed Energy Resources: 2024 State Policy Snapshot (February 2025) - examines the breadth and scope of recent state policy actions related to VPPs and DER aggregations in the United States and provides an outlook of expected 2025 activity.

• NASEO-NARUC Grid-interactive Efficient Buildings Working Group Webinar: Scaling Demand Flexibility with Software - January 30, 2025: This webinar featured Rajiv Shah of Octopus Energy Group discussing issues of scaling demand flexibility and VPP solutions, drawing on Octopus Energy and Kraken Technologies experiences, including management of over 200,000 devices at over 1 GW of flexible capacity in one of the world’s largest residential VPPs. The webinar covered approaches for optimizing distributed energy resource (DER) management, including technological, policy, regulatory, and customer-facing factors (such as incentive design) as well as establishment of the Mercury Consortium to advance device interoperability. Presentation slides are here and the recording here. 

• DOE, Pathways to Commercial Liftoff; Virtual Power Plants 2025 Update - This update supplements but does not replace the original 2023 VPP Liftoff Report by providing additional real-world examples, new resources, and updated industry insights that support VPP deployment. (Report, factsheet)

• DOE, Sourcing Distributed Energy Resources for Distributed Grid Services (December 2024) - examines the evolving role of DERs including EV charging to provide grid services for managing local distribution needs affordably. Shifting from traditional, bulk-power-focused DER use to local distribution-targeted applications is essential for deferring costly distribution infrastructure upgrades while ensuring grid reliability.

•    LBNL VPP and Demand Flexibility Reports (December 2024 - January 2025)

  • DER Integration Framework: Regulatory Innovation for DER Compensation and Cost Allocation - offers an illustrative technology-neutral, modular regulatory framework to enable flexibility and scalability for DER providers, utilities, and regulators. Clear price signals and incentives encourage the provision of valuable grid services, while equitable cost allocation promotes efficient use of distribution capacity and interconnection resources. 

  • Distributed Energy, Utility Scale: 30 Proven Strategies to Increase VPP Enrollment - identifies 30 proven strategies for scaling VPPs through increased enrollment. [Virtual Peaker hosted a webinar on December 12, 2024 – recap and recording access here.]

  • Virtual Power Plants: Insights, Profiles and Inventory - Insights into Scaling Virtual Power Plants report and appendix outlines actions that utilities and regulators can take to expand VPPs; the companion Virtual Power Plant Profiles and Inventory describes three conceptual profiles and includes details on more than 790 demand response programs and net energy metering solar plus battery programs, and 180 VPP programs. VPP inventory spreadsheet also available. March 19 webinar can be viewed here. 

  • Moving Beyond Direct Load Control: A Maturity Model for Realizing the Promise of Demand Flexibility - discusses a new maturity model that regulators and utilities can use to guide and expand demand flexibility programs and enable the resources to provide more grid services. March 6 webinar can be viewed here. 

  • State regulator opportunities to advance distributed energy resources aggregations in wholesale markets - discusses how state regulators can promote the participation of DERs in wholesale markets, including complementary actions that they can take to support Federal Energy Regulatory Commission Order 2222 implementation. March 6 webinar can be viewed here. 

• Colorado Microgrid Roadmap (2025) defines and evaluates different types of microgrids, develops criteria to identify priority projects, and recommends key policies to facilitate microgrid deployment in Colorado. It also includes strategies for addressing costs, interconnection standards, and legal considerations, which are among the main challenges for microgrid implementation in the state. The Roadmap includes discussion and examples of microgrids providing resilience, demand flexibility and VPP services.

• The CalFlexHub Symposium 2024 was held on September 24, 2024, featuring updates on CalFlexHub’s portfolio of projects, information on the latest policies, research, and developments in load flexibility as well as presentations from leaders in the space and keynotes from the California Energy Commission and U.S. Department of Energy. Slides and recordings are available here.

• NASEO-NARUC Grid-interactive Efficient Buildings (GEB) Working Groups Forum: RMI Virtual Power Plant (VPP) Flipbook - September 4, 2024: Mary Tobin, RMI discussed the recent RMI VPP Flipbook that highlights key design elements and lessons to help utilities and states to implement effective VPPs. The Flipbook showcases various technologies, utility participation models, compensation approaches, and third-party partnership roles. The Forum also had presentations from Yoh Kawanami from Hawaiian Electric and Amy Findlay from Eversource on their relevant utility programs and approaches. A recording is available here.

•  NARUC-NASEO DER Integration and Compensation Initiative: Resources and Activities (webinars, workshops)

• Murphy, et al. (LBNL), The State of Demand Flexibility Programs and Rates (August 2024) - This report provides foundational data on programs and rates that promote demand flexibility in residential and commercial buildings in the United States. Drawing on data from 148 programs and 93 rates, the report describes the structure of demand flexibility events, types and level of incentives, and offers additional detail and outcomes for some programs. The report also reports on dynamic, technology, and related rates features.

•   RMI Virtual Power Plant Partnership (VP3)

  • VPP policy principles; April 9, 2024 webinar recording and slides are available on RMI’s website.

  • RMI VPP Flipbook is a collection of VPP case studies highlighting key program design elements and takeaways to help utilities and other stakeholders implement efficient and impactful VPP programs.  The VPPs included in the flipbook showcase a variety of technologies, utility participation models, compensation frameworks, and third-party partnership roles to demonstrate the versatility of existing VPPs. The supporting VPP Comparison Matrix consolidates information from the Flipbook to allow the user to filter for VPPs most applicable to their needs.

• Midwest Energy Efficiency Alliance (MEEA) Webinar: VPPs in the Heartland: How VPPs are Impacting the Midwest – July 30, 2024: This webinar discusses VPP drivers and barriers in the Midwest, scalability and replicability in the region, and lessons offered from other parts of the country. Recording available via here.

• NARUC, NASEO, RMI: Aggregated Distributed Energy Resources in 2024: The Fundamentals, July 2024 - This report builds upon existing literature and leading examples of ADER pricing and programs in practice to equip commissioners and staff at Public Utilities Commissions and State Energy Offices with the fundamentals of ADER grid services, valuation options, and approaches to compensation.

• NASEO-NARUC Grid-interactive Efficient Buildings (GEB) and NASEO Industrial Working Groups Joint Forum: Industrial Demand Flexibility - June 11, 2024: This Forum focused on industrial demand flexibility and load management to save money, lower emissions, and reduce grid stresses from industrial operations. Dr. Kody Powell (Intermountain Industrial Assessment Center and University of Utah) and Dr. Blake Billings (Oak Ridge National Lab) presented Working Smarter, Not Harder: Opportunities and Challenges for Industrial Demand Response to Support the Grid and Ilia Krupenich and Akruti Gupta of the California Energy Commission (CEC) presented Industrial Energy Innovation in California highlighting industrial load flexibility opportunities and programs in California.
• NASEO-NARUC Microgrids and NASEO Rural Working Groups Joint Webinar: Improving Energy Resilience with Rural and Remote Microgrids (May 7, 2024) (Recording, Slides)
• Resources and Assistance for State Energy Offices and Regulators Program is funded DOE’s Office of Energy Efficiency & Renewable Energy and Office of Electricity to provide high-impact technical assistance and resources at scales and intervals that are responsive to State Energy Office and Public Utility Commission needs through multi-modal support options. It is designed to be responsive to a rapidly changing regulatory and policy landscape that seeks to match the timing and depth of questions with National Laboratory subject matter experts (SME) on key topical areas. This program augments and complements current technical assistance activities undertaken by various DOE program offices.
• March 14 U.S. DOE Deep Dive Webinar on the Pathways to Commercial Liftoff VPP report recording is posted.
• NASEO-NARUC Grid-interactive Efficient Buildings (GEB) and Microgrids State Working Groups Joint Webinar: Demand Flexibility and Electrified Transportation - February 1, 2024: This joint webinar of the NASEO-NARUC GEB and Microgrids State Working Groups explored opportunities for electrified transportation integrated with other distributed energy resources (DERs) to provide grid services and support resilience through demand flexibility and vehicle-to-grid (V2G)/vehicle-to-everything (V2X) functionality. Amy McGuire of Highland Electric Fleets (presentation) discussed school bus electrification, including work with Montgomery Co. (MD) on what will be the nation’s largest EV school bus fleet and its piloting of V2G applications. Jeremy Berke of the Washington State Department of Commerce (presentation) discussed the state’s Clean Energy Fund and Grid Modernization Program. Scott Gibson of the Snohomish County Public Utility District (PUD) (presentation) discussed the utility’s Arlington Microgrid V2G Demonstration Project that incorporates solar generation, battery storage, and V2G charging for the PUD’s EV fleet. (Recording)   
• American Council of an Energy-Efficient Economy (ACEEE): Johnson, A., A. Fraser, and D. York (2024) Enabling Industrial Demand Flexibility: Aligning Industrial Consumer and Grid Benefits calls on industry, utilities, and states to prepare for increasing loads by investing in strategies and technologies that enable demand flexibility, the ability of industrial facilities to adjust their energy consumption in response to grid conditions. 
• Guidehouse, Alternative Aggregated DER Participation Methods for US Grids Are Still Needed: FERC Order 2222 Is a Good First Step, but Additional Work Remains (4Q 2023) - This report discusses DER adoption and grid service potential of aggregated DER portfolios in the United States. It also outlines FERC Order 2222 goals, barriers to aggregated DER wholesale market participation, and discusses and offers recommendations on alternative grid participation methods for aggregated DERs.
• Illinois Commerce Commission: Investigation Into The Value Of, And Compensation For, Distributed Energy Resources (illinois.gov) - Workshop Series 1 presentations and recordings, Workshop Series 2 upcoming.