Full premium access for the first month at only $1“Utility programme caps, capacity accreditation reforms, and market barriers have prevented capacity from growing as fast as market activity,” explained Ben Hertz-Shargel, global head of grid edge for Wood Mackenzie. The report also found that the share of VPP wholesale market capacity from residential customers increased from 8.8% in 2024 to 10.2% in 2025, suggesting that there is growing interest in the VPP sector from residential customers, despite growing barriers residential power generation. Indeed, California is one of the “leading states” for VPP penetration, according to the Wood Mackenzie report. Along with Texas, New York and Massachusetts, these states account for 37% of VPP deployments, while the PJM and ERCOT grids have the largest utility commitments to data centre capacity, and the greatest disclosed VPP offtake capacity. “This model is seen as limiting access of private capital and aggregators from the distributed energy resources market, rather than leveraging customer and third-party-owned resources,” explained Hertz-Shargel.