| Resource Type | Research Report |
| Author / Source | Kevin Brehm, Athindra Venkatraman (RMI) |
| Publication Date | March 2026 |
| Location | United States |
| Initiative Type | Program, Technology |
| Project Complexity | Intermediate |
| Recommended For | Board, Staff |
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Estimated reading time: 30+ minutes
Why This Matters for Rural Electric Co-ops
Virtual power plants group member-owned devices like smart thermostats, batteries, and EV chargers so they can collectively support the grid. But VPPs only deliver value if utilities can accurately measure what those devices are doing.
This report lays out five measurement approaches and helps co-ops match the right method to their situation, AMI capabilities, and program goals. As member-owned DER adoption grows and grid costs rise, co-ops that understand these options will be better positioned to design affordable, effective VPP programs without over-investing in costly metering infrastructure.
Key Takeaways
| › | Overly strict metering requirements, like requiring expensive ANSI-certified meters for every thermostat, can make VPP programs cost-prohibitive and should be avoided. |
| › | Five metering approaches exist and no single option fits all DER types or grid services, so co-ops should match the method to the use case. |
| › | Sampling and aggregated accuracy methods can cut metering costs 80–90% while maintaining acceptable accuracy at scale. |
| › | Most utility VPPs today rely on device-level internet communications, which is more flexible than revenue-grade metering but may need to evolve for advanced grid services. |
Implementation Considerations
- Regulatory or Governance Considerations: Metering and telemetry requirements vary significantly by RTO/ISO region and are actively evolving. Co-ops should engage with their state commission and wholesale market operator early to understand what is required and what flexibility may exist.
- Staffing or Technology Requirements: Utilities may need upgraded metering and communications systems as well as cybersecurity protections. Smaller co-ops will likely need support from a DERMS provider, program administrator, or third-party consultant.
Notable Examples
- California Demand Side Grid Support (DSGS) Program: Allows imputed performance and prescriptive baselines, demonstrating a flexible, cost-effective approach to VPP measurement.
- Smart Meter Texas: Provides streamlined third-party access to customer meter data, enabling AMI-based measurement and verification at scale.
- NYISO and PJM: Allow performance assessment at the aggregation level rather than per-device, reducing administrative burden for VPP operators.
View Full Document Requires name and email to access
Estimated reading time: 30+ minutes
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