as published in Microgrid Knowledge

A West Virginia law–opposed by an environmental group–allows new data centers to be served by behind-the-meter microgrids whose owners could sell 10% of the power generated into the wholesale market. The goals of the measure include protecting ratepayers and the existing fossil fuel industry.

The story of a new West Virginia microgrid law–which would allow behind-the-meter microgrids to power data centers and sell 10% of generation into PJM’s wholesale market–began with an effort to lure new businesses to the state.

In 2022, the state recruited BHE Renewables, a subsidiary of Berkshire Hathaway, to come to the state, said James Bailey, an attorney and partner at Spilman Thomas & Battle and former cabinet secretary at the West Virginia Department of Commerce.

The idea was to attract businesses that want to power their operations with renewable energy, said Bailey, who was involved in the recruitment effort.

To help lure those businesses to the state, the legislature passed SB 4001, which created two microgrid districts limited to 2,250 acres each. Two parties–BHE Renewables and Fidelis New Energy–were allowed to deploy microgrids and sell 10% of the power output to PJM. Under the law, the microgrids were required to be powered by renewable energy.

“This allowed third parties to sell electricity to end users for the first time in the state’s history,” Bailey said, noting that the state has regulated, vertically integrated utilities.

In April, the West Virginia Legislature and Gov. Patrick Morrisey passed the latest version of that bill, amending the requirements of the two microgrid districts so that they can use non-renewables to generate electricity. The law added provisions that require microgrids to power “high-impact” data centers.

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