Virginia Faces Energy Crisis as Democrat-Backed Clean Economy Act Drives Up Costs

Lt. Governor Winsome Earle-Sears warns against Spanberger’s failing green-energy agenda as power shortages loom.

With electricity demand soaring—driven in large part by the rapid expansion of data centers—Virginia is facing a mounting energy crisis that is putting the state’s future at risk.

The Thomas Jefferson Institute for Public Policy, a respected free-market think tank, has long cautioned that the Virginia Clean Economy Act (VCEA)—pushed through in 2020 by Democrats—would lead to “more shortages and skyrocketing costs.” Its latest study, Vision for Virginia 2025: Energy Policy, has proven those warnings true.

Derrick Max, president and CEO of the institute, did not mince words: Virginia’s energy outlook is “100% a crisis.”

“I mean, we’ve literally had to tell users to get off the grid, which should never happen. We’ve shut down capacity,” Max explained. “The Virginia Clean Economy Act is requiring us to shut down more capacity. We’re having trouble getting gas-fired plants built, because there’s been this view that any amount of [carbon dioxide] is too dangerous.”

Under the VCEA, “noncompliance costs” are projected to soar to $609 million in just one year. Utilities such as Dominion Energy are forced to purchase renewable energy certificates—often from out-of-state providers—simply to meet mandates.

“It’s literally $609 million going out from Virginia to companies in other states because of penalties imposed by our legislators, on our utility companies,” Max said. “It doesn’t help you build another power plant. It doesn’t help you get through this crisis. It literally is just a flat-out felony.”

Those costs inevitably fall on Virginia families through higher utility bills.

Making matters worse, Virginia last year became the nation’s largest net importer of electricity, relying on outside states for 36% of its supply. That dependency is growing, and with peak demand events straining the grid, the risks of rolling blackouts are real.

Republican Lt. Gov. Winsome Earle-Sears, now running for governor, has consistently pushed for energy independence and affordability. By contrast, her opponent—former Democrat congresswoman Abigail Spanberger—is clinging to the very policies that created the crisis.

Max credited Spanberger’s campaign for releasing an energy plan, but said it completely misses the mark. “I think there’s a fundamental misunderstanding on the Spanberger team of the level of our crisis,” he said. “Her plan focuses on renewables and nuclear and a bunch of options that really won’t get us through the next two years, which is where our crisis is.”

Max stressed the need for “dispatchable” energy—power that can be turned on instantly during peak demand. Renewables simply can’t deliver when the sun isn’t shining or the wind isn’t blowing.

“Now, the problem with the cold snap was, it happened in the middle of the night, so you can’t rely on any solar to get you to meet that peak,” Max explained. “And if you look at where the PJM, you know, which grid operator got their energy, almost all of it came from hydrocarbon and nuclear fuel, so it’s just not possible to do this Spanberger plan and get us through this crisis.”

Despite the clear warnings, Spanberger continues to defend the Democrat-backed mandates. Her campaign claimed: “While President [Donald] Trump and extreme politicians in Congress are raising costs on Virginia families and threatening thousands of private-sector energy jobs, Virginia’s lieutenant governor is cheering them on. Virginians deserve leaders who will take decisive action, bring Democrats and Republicans together, and deliver real solutions. That’s why earlier this year, Abigail rolled out her ‘Affordable Virginia Plan’ to lower energy costs for all Virginians.”

But Republican leaders see Spanberger’s promises as empty rhetoric. State Sen. Mark Peake, chairman of the Republican Party of Virginia, was blunt:

“Lt. Gov. Winsome Earle-Sears has a real energy plan. One that puts reliability, affordability, and Virginia families first. She understands we need an all-of-the-above approach to power our economy and protect our grid,” Peake told The Daily Signal.

“Meanwhile, Abigail Spanberger is pushing a fantasy. Her plan would leave Virginia in the dark, literally and economically. Virginians can’t afford rolling blackouts and skyrocketing bills just to check a progressive box.”

Even federal regulators are sounding the alarm. Federal Energy Regulatory Commission Chairman Mark Christie has warned: “We’re going to keep shutting down dispatchable resources and keep adding renewable resources and hope the weather’s 72 degrees all year. Well, that’s not going to happen. We’re going to have a reliability problem, and we’re going to have blackouts.”