SACRAMENTO, CA— Virtual Power Plants (VPPs) could save Californians $550 million per year in energy costs —$500 million of which could go directly to customers who participate, and another $50 million in system-wide ratepayer savings. VPPs are networks of distributed energy resources, such as smart thermostats, home batteries, and electric vehicles, that work together to shift demand and deliver clean, affordable, and reliable power to the grid.  

AB 740, authored by Assemblymember John Harabedian, would accelerate the deployment of virtual power plants (VPPs). The bill directs the California Energy Commission to study the potential of VPPs and develop a statewide implementation plan to deploy VPPs at scale.  

“As energy prices continue to strain California families, Virtual Power Plants present a smart, homegrown solution,” said Assemblymember John Harabedian (D-Pasadena). “That’s why today’s passage of AB 740 is such an important step— it moves California closer to unlocking its full potential to lower costs, improve grid reliability, and accelerate our clean energy future. I'm proud to partner with Advanced Energy United, Environment California, and the Climate Center to help make energy cleaner and more affordable for all Californians.”

“Creating a statewide plan for virtual power plants will help turn everyday home appliances into energy assets that will lower bills and make our grid stronger and more reliable during grid emergencies,” said Edson Perez, California lead at Advanced Energy United, one of the bill sponsors.   

“Virtual power plants (VPPs) can make electricity cleaner, cheaper, and more reliable for millions of Californians," said Kurt Johnson, Community Energy Resilience Director for policy nonprofit The Climate Center. "The Climate Center is proud to work alongside Assemblymember Harabedian to advance the use of VPPs and secure clean, affordable energy for all.” 

"Virtual power plants are a win-win for California – they help cut pollution, strengthen our electric grid and empower communities to create a clean energy future,” said Laura Deehan, Environment California’s state director. “With AB 740, we’re unlocking the potential of thousands of homes and businesses to share clean, reliable power when and where it’s needed most."