Energy Storage Target

B. 895, enacted in April 2026, increased the energy storage targets for Appalachian Power Company and Dominion Energy and adopted new targets for long-duration storage. The summary below reflects the new targets adopted by H.B. 895.H.B. 1526, enacted in April 2020, established an energy storage target for the investor-owned utilities in Virginia. These targets were subsequently amended. There are different goals for Phase I (Appalachian Power Company) and Phase II (Dominion Energy) utilities. The Virginia General Assembly only adopted final targets for each utility to meet in 2040 (initially ending in 2035, but amended by H.B. 895), but the Virginia State Corporation Commission adopted interim targets for 2025 and 2030. H.B. 895 directed the Virginia State Corporation Commission to set new interim targets for years 2031 through 2045 by January 1, 2027.For Phase I Utilities (i.e. Appalachian Power Company) the storage requirements are:25 MW by December 31, 2025150MW by December 31, 2030780 MW short-duration storage by December 31, 2040520 MW long-duration storage by December 31, 2045260 MW between 10 and 24 hours of storage capacity260 MW more than 24 hours of storage capacityFor Phase II Utilities (i.e. Dominion Energy Virginia) the storage requirements are:250 MW by December 31, 20254,000 MW by December 31, 203016,000 MW short-duration storage by December 31, 20454,000 MW long-duration storage by December 31, 20452,000 MW between 10 and 24 hours of storage capacity2,000 MW more than 24 hours of storage capacityThe maximum energy storage project is 500 MW in size, except for Phase II Utilities, which can produce up to 800 MW in a single project. Beginning July 1, 2020, at least 35% of energy storage facilities put into service must be purchased by the utility from an entity other than the utility itself.