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ARTICLE · 10 MARCH 2026

Virtual Power Plants: A Cost-Effective Solution For High Grid Demand In New Orleans

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It is no secret that the power grid in New Orleans is not only actively aging; it is susceptible to failure. These issues became glaringly evident in August 2021 during Hurricane Ida.

United StatesEnergy and Natural Resources

It is no secret that the power grid in New Orleans is not only actively aging; it is susceptible to failure. These issues became glaringly evident in August 2021 during Hurricane Ida. The current grid system is fragile and can quickly be knocked offline for weeks. In an effort to combat this vulnerability, on Dec. 18, 2025, the New Orleans City Council unanimously voted to order local utility Entergy New Orleans to design a $28 million solar-tied battery incentive program for homes, businesses, and nonprofits (plus $2 million for administration/implementation), for a total of $30 million in funding, which has been supplied via settlement funds from Entergy to the City. The program has become colloquially known as the "Neighborhood Power Plan", proposed by Together New Orleans (TNO). Mayor Helena Moreno announced it as the city's first Distributed Energy Resource (DER) Program to create grid reliability, sustainability, and community resilience. This $30-million initiative will

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