Virginia General Assembly to Expand Utility-Scale Battery Storage with Projected $62 Billion Cost

The Virginia General Assembly is expected to amend the Virginia Clean Economy Act (VCEA) to increase utility-scale battery storage, potentially incurring $54 billion in capital expenses over 20 years for ratepayers. The Commission on Electric Utility Regulation has approved a revised bill, previously vetoed by Governor Glenn Youngkin, without addressing cost implications.

The VCEA mandates 12.4 gigawatt-hours (GWh) of battery storage, but the new bill proposes nearly 92 GWh, necessitating long-duration batteries, which are currently not feasible. Existing battery installation costs are around $675,000 per megawatt-hour, leading to an estimated total capital cost exceeding $62 billion.

This does not account for utilities' profit margins and operating costs, which will further increase electricity bills. Additionally, concerns about the ability to recharge this storage and public resistance to large installations remain unaddressed.