Democrat Abigail Spanberger’s decisive win in Tuesday’s election for Virginia governor, as well as other down-ballot Democrat victories in races for lieutenant governor and attorney general, mark a major shift in Virginia politics and set the stage for significant developments in the Commonwealth’s energy landscape.

Few issues played a larger role in the campaign than the availability, affordability, and reliability of power in Virginia. With Democrats now controlling both the governorship and the General Assembly, energy policy is likely to be at the forefront of legislative and regulatory priorities. 

This article looks at how energy factored into the election, what Governor-elect Spanberger campaigned on, and what businesses, developers, and consumers may expect in the years ahead.

Energy at the Center of the Campaign

The 2025 election unfolded amid a period of rapid change in Virginia’s energy economy.

The AI and data center boom continues to transform the landscape of Northern Virginia and beyond. In regulatory filings, Dominion Energy projected that total customer demand will rise from 17,300 megawatts in 2024 to 26,600 megawatts by 2039—a nearly 55% increase. Much of that growth is tied directly to data center development.

Meeting that demand will require massive investments in new generation and transmission infrastructure. Dominion’s latest Integrated Resource Plan estimated that these grid upgrades could increase a typical residential customer’s monthly bill from $142.77 to $214.24 over the same period.

Meanwhile, Virginia’s energy challenges are being compounded by national policy shifts. The federal repeal of renewable tax credits under HR1 (i.e., The One Big Beautiful Bill) has squeezed margins for solar and storage developers. And as one of the largest net importers of electricity in the United States, Virginia is increasingly exposed to regional reliability and cost pressures within the PJM Interconnection.

The bottom line: energy is no longer just an environmental issue at the ballot box, but an economic and competitiveness issue as well.

Industry Perspective: “Virginia Needs More Generation — and Quickly”

In the latest episode of The Shock, GreeneHurlocker’s energy policy podcast hosted by Claire Gardner, Robin Dutta, Executive Director of the Chesapeake Solar & Storage Association (CHESSA), discussed what the next chapter might hold for Virginia’s power sector.

“Virginia needs more [energy] generation, and needs it quickly,” Dutta said.

He pointed to the growing role that renewable energy and battery storage can play in meeting near-term capacity needs. Unlike traditional fossil fuel plants, which can take many years to permit and construct, solar and storage projects can be deployed faster and at lower cost.

“The need to build out solar and storage is only more prevalent and more urgent,” he said. “Solar and storage can get deployed faster and more cheaply than any other technologies.”

Dutta also emphasized that the Virginia Clean Economy Act (VCEA) remains a cornerstone of the Commonwealth’s energy framework. With federal credits gone, he argued that state policy will need to take a stronger role in incentivizing development and ensuring the right mix of affordability, reliability, and resiliency.

Spanberger’s “Affordable Virginia” Plan

Governor-elect Spanberger’s campaign made energy a central pillar of her “Affordable Virginia” plan, which focused on increasing supply, controlling costs, and modernizing infrastructure.

Her proposals included:

• Cutting construction red tape to speed the approval of new generation and transmission projects.
• Requiring data centers to cover their “fair share” of power costs, reflecting growing public concern that industrial-scale users not shift expenses onto residential customers.
• Promoting distributed renewables, including rooftop solar and small-scale battery storage projects, to enhance local grid resilience and reduce dependence on centralized generation.

More details will likely emerge in the months ahead, as the General Assembly prepares to go back in session in January.

The Data Center Question

Perhaps the most challenging policy question facing the new administration is how to balance continued data center growth with the state’s energy capacity and climate goals.

Virginia has become the world’s largest data center hub, and data centers now account for more than 20% of Dominion’s total load. Much of the planned future energy demand growth in Virginia will come from this single sector.

Spanberger has called for a more “balanced” approach — encouraging continued investment while ensuring that new facilities pay their fair share of infrastructure costs and make greater use of renewable and behind-the-meter energy solutions.

With Democrats in control of the governorship and the legislature, the VCEA will almost certainly not be repealed anytime soon. That means renewable energy will continue to play a central role in meeting the state’s long-term demand and emissions goals. Accordingly, policy discussions in 2026 may focus on:

• Expanding opportunities for onsite solar and storage at large energy users.
• Encouraging private power purchase agreements (PPAs) and other market-based tools.
• Addressing siting and permitting bottlenecks for new generation and transmission projects.

Looking Ahead

Virginia continues to face a big challenge: to chart a clear and consistent energy path at a time of rapid technological and economic change. As Robin Dutta put it, “What comes next needs to address affordability, resiliency, and reliability.” Those three words may well define Virginia’s energy policy agenda under the new administration.

GreeneHurlocker will continue to monitor policy developments and support clients navigating this critical period in Virginia’s energy transition.