March 2026

Greetings,

The bombs falling across the Middle East offer the latest tragic and terrifying evidence of the dangers of the world's dependence on oil. Solar and wind are not only the least expensive and cleanest energy sources, but they are also immune from the politics of this unstable region. As we face global economic shocks, we hope that at home we can continue Colorado's progress towards clean energy.

Sunny regards,

Rebecca Cantwell

for New Energy Colorado

Please forward this newsletter to friends and colleagues and let us know what else you would like to read about by emailing us here

Giant Data Centers Spark Community Blowback

Huge data centers to serve the needs of Artificial Intelligence are proliferating around the nation and causing consternation as they contribute to rapidly rising electricity prices and threaten to upend climate protections.

The amount of electricity such centers use is staggering. A three-building center under construction in north Denver is expected to use up to 75 MW of power at a time- enough to power about 82,500 homes. It is also expected to use as much water as 16,100 Denverites average daily use.

Colorado law currently encourages such data centers through a 2018 law, and supporters say they are good for jobs and growth. But efforts are underway to acknowledge the problems, and states around the nation are working to erect guardrails, especially as the contribution to soaring electricity prices becomes better known.

The Colorado Renewable Energy Society’s policy statement calls for restrictions including:

· Requiring large data centers to secure renewable energy sources and storage to meet all their needs

· Requiring the centers to pay the full cost of their energy and transmission services

· Limiting water consumption by the data centers

· Prohibiting the use of polluting diesel backup generators.

At the legislature, two bills have been introduced: HB26- 1030 would encourage large data centers and provide incentives. The bill supported by clean energy advocates, SB26- 102 would put restrictions on data center development designed to protect the climate.

Because the state is facing a large budget shortfall, the fate of both bills largely hinges on cost, as Colorado legislators are not expected to approve much legislation that adds to the budget hole.

At the Public Utilities Commission, however, the issue is likely to be addressed starting this spring. A Large Load Tariff Filing from Xcel’s Colorado subsidiary is due on April 2. That proceeding will set the rules for how pricing for large users such as big data centers would be set and how the costs would be spread. In a major proceeding completed last year, the PUC showed an interest in putting limits on data center development.

https://www.cpr.org/2025/10/14/ai-air-quality-impact/

https://coloradonewsline.com/2025/12/12/what-data-centers-really-mean-colorados/#:~:text=Social impacts,employ fewer than 100 workers.

https://coloradosun.com/2026/02/24/denver-data-center-moratorium-state-legislature-opposition/

Thanks to Colorado Sierra Club for photo above of a rally at the Colorado Capitol 3/13/26

Virtual Power Plants Coming to Colorado

How would you like to use your solar panels, electric car or backup battery system to help avoid the need for new expensive power plants? How would you like to get paid for sharing extra power that you are already producing? You may get the chance soon by joining a “virtual power plant.’’

Already widely deployed in parts of the nation, the first pilot projects are coming to Colorado.

Virtual Power Plants (VPP) are networks that aggregate various distributed energy resources to function as a single, unified power plant. Unlike traditional power generators that rely on large, central facilities like coal or natural gas plants, VPPs connect thousands of smaller, decentralized assets such as residential solar panels, home battery storage, electric vehicle chargers, and smart thermostats.

By managing the assets,VPPs can dispatch energy or reduce consumption in real-time, effectively mimicking the output of a conventional utility-scale generator. They can enhance grid reliability and efficiency, particularly during periods of peak demand. Utilities often build expensive and polluting "peaker" plants, which are typically only activated during these high-stress windows. These plants are often natural gas driven turbines that are paid for by ratepayers.

Using VPPs instead can thus help reduce electricity costs. Since the energy sources for VPPs are distributed in the communities that they serve, as opposed to large power plants located far away, they can also help reduce the need for extensive grid improvements. This can also keep electricity costs low. VPPs also challenge the traditional monopoly power grid by decentralizing energy production and introducing competition into markets long dominated by single utilities. This competition can lead to greater innovation, better efficiency and reduced cost.

In 2024, the Colorado legislature passed a law that mandates large scale utilities to develop VPP programs. As a first step, Xcel Energy has launched a Renewable Battery Connect program which only has limited funding left. Another small program is expected to launch later this year with third parties recruiting participants with Xcel-approved home batteries.

Holy Cross Energy's VPP initiative includes multiple batteries as well as other distributed energy resources, such as thermostats and EV charger management. Poudre Valley REA has launched a VPP, which is only including Tesla home batteries.

In the current legislative session, three bills would impact VPPs: HB26-1225 changes rules for solar gardens and intends to provide third-party interconnection for batteries, HB26-1007 would allow small "balcony solar'' installations and "meter collars'' to avoid panel upgrades and HB26-1051 would continue the Microgrid Resilience Grant Program.

Learn more:

Xcel Energy’s Renewable Battery Connect program offers financial incentives for battery installation. https://co.my.xcelenergy.com/s/renewable/battery-connect

Xcel’s Model for VPPs in Minnesota is challenged: VPP vs. VPP: Customer-owned DER aggregators challenge Xcel-owned batteries in Minnesota docket | Utility Dive

Pros and Cons of Xcel’s Model: The Xcel Energy Colorado Virtual Power Plant Program: Pros/Cons

Boulder’s VPP Plan Stalls After Federal Funding Cut Boulder’s $12.7M 'virtual power plant' project stalls after federal grant is cut

Virtual Power Plants Are Key to Unlocking America's Energy Transition, https://oilprice.com/Energy/Energy-General/Virtual-Power-Plants-Ae-Key-to-Unlocking-Americas-Energy-Transition.html

Is This L.A. Home the Solution to America’s Growing Energy Crisis? https://www.nytimes.com/2026/01/31/business/energy-environment/energy-bills-costs-states-trump-power-plants.html

--------------------------------------------------------------------------------------------------------------------------------------------

A new tool is available to help Coloradans shift their energy use to times when the sun is shining and the wind is blowing.

ChargeBug is a new Apple IOS app that tracks the time of cleaner energy production, provided by Adrienne Karpen as a free app from Sinton Instruments.

ChargeBug displays a graph that represents the clean energy composition of the grid, as illustrated below, and suggests good times to charge to use clean energy. A data table is available for those who like to see the numbers.

Here is a webinar for more information: https://www.youtube.com/watch?v=vJmo_xFg0Og

Come to a JCRES Presentation March 26: https://www.cres-energy.org/events.html

Access the forecast here:

Apple App:

https://apps.apple.com/us/app/chargebug/id6759166986

While many federal programs to help people save on renewable energy and energy efficiency have ended, the state of Colorado's comprehensive portal can help you find anything you might qualify for:

Colorado Energy Savings Navigator | Public Utilities Commission