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Our recent webinar, 2026 Outlook: Demand Flexibility, VPPs, and Meeting Massive Load Growth, Virtual Peaker’s Jeff Quigley and Doer/Maker’s Ashley Santor explored how utilities can move from reactive problem-solving to proactive, strategic planning supported by demand flexibility and virtual power plants (VPPs). They unpacked the changing landscape and the massive load growth utilities are planning for in 2026. What emerged was a clear picture of an industry at an inflection point: operational pressure is intensifying, customer expectations are rising, and utilities are being asked to scale innovation faster than ever before.
Here are the top insights we took away from the discussion.
1. Demand Flexibility Is Now Essential for Both Reliability AND Affordability
The push toward flexibility is no longer theoretical. With residential rates up nearly 40% in five years and 2024 yielding more outages than the entire previous decade, utilities are prioritizing solutions that can deliver both operational and financial stability. Demand flexibility programs like demand response, EV charging, or VPPs are no longer niche programs — they’re becoming foundational grid strategies for smoothing peaks, avoiding costly upgrades, and improving resilience.
2. Utilities Must Move Beyond “What Is a VPP?” to “How Do We Operationalize One?”
Ashley emphasized that confusion still exists around demand response and VPP terminology — but the real challenge isn’t definitions, it’s execution.
Success in operationalizing a VPP requires:
- Internal buy-in at every level
- Organizational proximity between innovation teams and operations
- Clear roles and ownership
- Transparent communication
As Jeff said, “Technology isn’t the barrier — organizational alignment is.”
3. Utilities Are Engaging in Demand Response at Record Levels — and Their Challenges Are Shifting
New research shared during the webinar revealed a major shift in industry behavior: fewer than 5% of utilities are not engaging in demand response today, down from 15% just a few years ago. Participation is nearly universal — but the challenges utilities face have evolved.
The top three issues tied to rising demand are now:
- Customer Engagement & Satisfaction
- Generation Shortages
- Reliability Impacts
Just as importantly, the perceived barrier of “finding the right technology partner” has dropped dramatically — from 56% to below 30% — signaling that utilities are more confident navigating the technology ecosystem than ever before.
Utilities aren’t struggling with whether to engage in demand flexibility — they’re struggling with how to scale it, communicate it, and integrate it into core operations
4. Data Centers Are Transforming Load Growth — and Can Become Flexible Assets
Data center load growth continues to accelerate — large, constant, year-round consumption that challenges planning models. But a new insight emerged: Data centers can become active participants in flexibility and capacity solutions.
This can be accomplished by employing:
- Mid-sized behind-the-meter batteries
- Controlled load-shifting
- Orchestrated curtailment strategies
- Purpose-built DER program models
Data centers have the potential to contribute capacity rather than strain it. This reframing is one of the biggest opportunities heading into 2026.
5. The Biggest Barriers to Flexibility Aren’t Technological — They’re Organizational
Across the entire planning conversation, one message was loud and clear: Scaling DERs is more about people, processes, and permissions than it is about technology.
Key barriers to getting the most out of your demand flexibility initiatives include:
- Siloed teams
- Unclear governance
- Workforce capacity
- Incentive misalignment
- Risk aversion
- Limited community engagement
Cybersecurity remains a major concern — but speakers noted that many utilities assume the work is “done,” when in reality it is an ongoing requirement that must be built into expansion strategies. Organizational readiness will determine which utilities scale flexibility fastest.
6. National Best Practices Are Emerging — and They Matter
Defining success for any demand flexibility program is crucial in determining the next best steps. Utilities want to know: Who’s doing this well? What does success look like?
Speakers pointed to attributes of leading organizations that have led to success, including:
- Integrating innovation into economic development
- Empowering cross-functional teams
- Aligning demand flexibility programs to measurable operational needs
- Scenario planning vs. reactive problem-solving
- Maintaining strong community engagement and inclusion foundations even as priorities shift
Leadership examples were anonymized but included well-known utilities that have tied flexibility directly to long-range load planning.
7. Early Insights from Doer/Maker’s 2025 Research Suggest Flexibility Will Define the Next Decade
Ashley previewed findings from the upcoming 2025 State of Demand Flexibility Report (debuting at AESP).
Expect industry movement toward:
- Enterprise flexibility platforms
- Automation and orchestration at scale
- Better alignment between economic development and grid planning
- New DER participation groups (especially mid-market assets)
- More intentional scenario planning
- Updated metrics for measuring program value
In short: flexibility will be a core operating strategy in 2026 — not a “program” or “initiative.”
Final Thought: The Future Grid Is Flexible — but Demand Flexibility Requires Internal Transformation
The webinar made one thing clear: while the technology is ready, the industry must now focus on internal alignment, organizational readiness, and the ability to scale. Utilities that center communication, governance, and cross-functional planning will be the ones that unlock the full value of VPPs and demand flexibility — and meet the rising demands of the next decade.
Don’t Just Take Our Word For It!
