Maryland Approves New Vehicle-to-Grid Pilots
By Steve Letendre, PhD, Senior Advisor
What’s new?
Maryland is moving vehicle-grid integration (VGI) from policy concept into real utility virtual power plant (VPP) pilots.
Passed in 2024, Maryland’s landmark Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act set a precedent by recognizing bidirectional charging systems as a distributed energy resource (DER). The DRIVE Act required the Maryland Public Service Commission to establish first-in-the-nation interconnection procedures for bidirectional chargers, which were finalized in mid-2025.
The Commission recently issued an order advancing implementation of the second provision of the DRIVE Act, approving new virtual power plant (VPP) and vehicle-to-grid (V2G) pilot programs that will pay customer-sited DERs, including bidirectional charging systems, for supporting the electric distribution grid when needed most. While the timing of the pilot implementation will vary by utility, it is anticipated that the programs will be in place for the 2027 summer season.
The order applies to Baltimore Gas and Electric (BGE), Potomac Electric Power Company (PEPCO), Delmarva Power, and Potomac Edison. Together, the approved pilots target roughly 185.7 MW of peak load reduction, a major increase from the utilities’ initial proposals and an important step toward making VPPs and V2G resources part of Maryland’s grid planning toolkit.
What is it?
The Commission’s latest order builds upon the bidirectional charger interconnection procedures by adopting the programs and tariffs to compensate customer-sited resources for providing electric distribution system support services (EDSSS).
That means utilities can call on enrolled devices during grid events. For example, a home battery, a bidirectional electric vehicle (EV) charging system, commercial load, or aggregation of DERs can reduce demand or export power when the grid needs support. Customers or aggregators are then paid for the verified value they provide.
While the pilots establish a strong framework for distributed energy resources to provide peak shaving support and export to the grid, the initial phase envisions only limited V2G participation. VGIC applauds this important progress and looks forward to continue working with our members and Maryland stakeholders to further expand the role of bidirectional EV charging systems as flexible, dispatchable grid resources.
How much can customers earn?
The Commission approved a portfolio of DRIVE Act pilot programs across BGE, PEPCO Holdings, Inc. (PHI), and Potomac Edison that differ by customer segment, resource type, peak reduction target, and compensation structure. Some programs focus on residential batteries and bidirectional EVs, while others rely on aggregator-led participation from larger customer classes or include locational adders to reflect distribution system value. The following table summarizes the approved programs, including their targeted peak reductions and compensation levels.
| Utility | Approved Program | Approved Peak Reduction | Compensation / Payment Amount |
|---|---|---|---|
| BGE | Residential Bring Your Own Device (BYOD) Program – Battery Energy Storage System (BESS) and Bidirectional-Enabled EVs | 4.12 MW | Stationary storage: $300/kW-year based on nameplate capacity; Bidirectional EVs: $300/kW-year based on nameplate capacity; Residential storage + solar: $150/kW-year based on nameplate capacity. |
| BGE | Aggregator Participation Program | 135 MW | Reservation payment: $90/kW-year based on pledged capacity, with payment pass-through via aggregator; Event payment: up to $6/kWh based on baseline calculation and pledged capacity, with payment pass-through via aggregator. |
| PHI - PEPCO & Delmarva | Residential / Small Commercial BESS and EV Program | 4.4 MW | BESS/V2X compensation: $300/kW-year. |
| PHI - PEPCO & Delmarva | Large Non-Residential Commercial and Industrial (C&I) Alternative Scenario | 30 MW | Pay-for-performance compensation based on average kW curtailed during dispatch events: PEPCO: $75/kW-season; Delmarva: $40/kW-season. |
| Potomac Edison | BYOD Direct Enrollment Pathway – Behind-the-Meter (BTM) BESS and Bidirectional EVs | 2.3 MW | Performance incentive: up to $300/kW-year; The order lists a connectivity incentive of up to $150/connected year, but the connectivity incentive was not approved for utility rate recovery because it is not performance-based. |
| Potomac Edison | Aggregated Resources Pathway | 9.87 MW | Up to $65/kW-year based on average event performance with two-hour event dispatch windows. |
| Potomac Edison | Locational Adders | Not listed as separate MW | Locational adders: $50 for residential BYOD batteries and EV chargers; 20 percent of the performance payment for aggregations. |
At the residential compensation level approved for several of the battery and bidirectional EV offerings, the potential customer value can be meaningful. For example, a bidirectional EV paired with a 10-kW bidirectional charger could earn up to $3,000 per year under a $300/kW-year compensation structure, assuming the full 10 kW capability qualifies and the customer meets the applicable program requirements. Actual earnings will depend on the specific utility program, eligible export capacity, event participation, customer settings, and verified performance, but the example illustrates why these payments are important: they begin to turn bidirectional EVs from backup-power assets into recurring grid-value resources.
Why is this important?
First, Maryland is reaffirming that EVs are grid resources. Notably, the Commission has directed the utilities to allow grid net exports in their pilot programs and include a pathway for bidirectional EV charging systems to participate. This sends an important signal to automakers, charging providers, aggregators, and customers investing in grid-parallel bidirectional EV charging systems.
Second, the order supports a competitive market structure. The approved DRIVE Act pilots establish both bring-your-own-device (BYOD) direct-enrollment and aggregator models, allowing customers to participate through different technologies and service providers rather than relying only on a utility enrollment pathway. More work may be needed to ensure the market remains competitive as pilots are implemented.
Third, the Commission addressed interconnection barriers by directing utilities not to impose broad new interconnection or restudy requirements on net metering customers (i.e., those with existing rooftop solar systems) as a prerequisite for VPP participation. That sends an important message that unnecessary process barriers should not slow customer enrollment and the increased grid utilization, affordability, and reliability it brings.
Finally, the order keeps the focus on measurable grid value. Utilities must report on enrollment, performance, spending, and lessons learned, and a mid-cycle review will help refine the pilots before they potentially transition to permanent programs. Maryland is no longer asking whether distributed energy resources, including bidirectional EV charging systems, can support the grid. It is now joining the ranks of other leading markets – including California, Colorado, Connecticut, Massachusetts, New York, and Texas – by testing how to make that participation measurable, scalable, and durable.
If you’re an auto OEM, technology provider, charging site developer, installer, utility, regulator, advocate, or fleet that wants to help shape the VGI market, we’d love to work with you! Join VGIC membership or, for investor-owned utilities, participate in the Utility Collaboration Forum by emailing info@vgicouncil.org. You can also join our newsletter and follow us on LinkedIn to learn about the latest in VGI news, events, and market developments. The next wave of VGI regulation and innovation is here – let’s shape it together!