Virginia's electricity demand is surging, driven by data centers, transportation electrification and next-gen manufacturing. Energy experts and community stakeholders gathered in Richmond on Sept. 9 for an Expert Voices roundtable to discuss the future of Virginia's power grid and the challenges ahead.

• "There's this wall of opportunity that's coming," said David Black, CEO of Shell Energy Solutions, who attended the roundtable discussion. "Which is fantastic but also makes it a challenge."

Why it's important: Virginia's electricity demand is growing faster than the grid can handle, due to new projects like data centers across the state. New projects are good news for economic development, but they're putting unprecedented pressure on the power system.

• Satisfying this demand along with the requirements of the Virginia Clean Economy Act will take new ideas and solutions.
• "[Virginia] doesn't have a really good mechanism today to quickly serve that demand, so the risk is that potential opportunity goes someplace else," said Black.

Experts at the roundtable highlighted several key barriers to meeting rising demand:

• Existing models can't accommodate both growth and clean energy mandates: An energy official said Virginia's current path makes it nearly impossible to meet demand while also hitting targets set by the Virginia Clean Economy Act.
• Energy projects face long permitting and interconnection delays: One attendee noted that even small solar projects can take 3 – 4 years to move forward in Virginia, in part due to complex local land use rules and growing community opposition.
• Virginia imports a significant share of its power: With in-state generation falling short, Virginia is purchasing a large portion of its electricity from PJM, the regional power market, a practice that experts warned may not be sustainable long term.

The solution: "I think it's about trying to strike the right balance between the business opportunity that is being presented, while meeting the demands of commercial and industrial customers by providing reliable and cost-competitive power," said Black.

At the roundtable, Shell pointed to limited retail choice for commercial and industrial consumers as one solution that could ease pressure on the grid, and support efforts related to the Virginia Clean Economy Act, while longer-term projects come online.

• What this means: Allowing large commercial and industrial users, such as data centers and manufacturers, to purchase electricity from third-party suppliers would give businesses more flexibility in their decision-making and reduce strain on the state's grid.

• Because these customers and suppliers already operate in competitive regions with wholesale markets, the change could be implemented relatively quickly.

But retail choice alone isn't enough. Black stressed that new investment will only flow if Virginia creates clear and stable policy frameworks.

• Today, permitting delays and regulatory uncertainty discourage companies from deploying capital, making it difficult to bring new generation online at the pace growth demands.

He also emphasized the need for ongoing collaboration between industry, government and communities. By bringing more voices to the table early, leaders can surface potential tradeoffs, build trust and ensure projects deliver benefits locally.

The outlook: "It's kind of an all-the-above. If we just put all our hopes on one thing and we get it wrong, that's going to have a bad outcome," said Black. "Right now, Virginia has an opportunity to lead the nation in energy innovation and create an environment that will incentivize commercial opportunities, and I'm excited to see this happen."

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