By Kimberly Chin

Dominion Energy Inc. has received approval from Virginia regulatory authorities to proceed with the next phase of its 10-year plan to transform the state's electric distribution grid.

The Virginia State Corporation Commission also greenlit over $650 million in investments in 2022 and 2023.

Phase 2 involves investments that would help integrate distributed energy resources, such as small-scale solar projects, energy storage facilities and electric vehicles.

The Richmond, Va., company said it will deploy smart metering infrastructure and intelligent grid devices that will provide real-time data on the grid's condition. Dominion also plans to invest in data infrastructure and systems that will help optimize grid operations and improve the grid's reliability.

Dominion said the first phase, which is already underway, involved increasing the grid's reliability and security and developing a new customer information platform to help customers understand their usage and bills.

"Recent federal and state clean energy policies as well as commitments and incentives to speed the transition to electric vehicles have accelerated the need for a transformed energy grid capable of supporting significant volumes of renewables, batteries, and other distributed energy resources," Dominion said.

Dominion Energy's shares rose 1.9% to $80.54.

Write to Kimberly Chin at kimberly.chin@wsj.com

(END) Dow Jones Newswires

01-07-22 1531ET