Virtual power plant bills, Assembly Bills 740 and 44, advance in committee, now head to the Assembly Appropriations Committee.
SACRAMENTO, CA—Today, the California Assembly Utilities and Energy Committee passed two bills unanimously that would encourage the use of cleaner, faster, and more affordable power to meet the state's peak electricity demand. Both bills help support Virtual Power Plants (VPPs), which are made up of small-scale energy resources found in homes and businesses, like smart thermostats, home batteries, and electric vehicles. These resources can shift, store, and deliver clean energy during times of peak demand, reducing stress on the grid.
Assembly Bill 740 will unlock the potential of VPPs by requiring the California Energy Commission to develop strategies to enable VPPs to be deployed at scale statewide.
“California cannot meet the demands of a changing climate with yesterday’s grid,” said Assemblymember John Harabedian. “Virtual Power Plants represent a fundamental shift toward a cleaner, smarter, and more affordable energy system. AB 740 positions California to lead the nation in turning everyday homes and businesses into clean energy powerhouses—cutting costs for families, creating good-paying jobs, and building a more reliable and equitable energy future from the ground up.”
“Virtual Power Plants are a critical example of how innovation can bring huge benefits to the grid and all ratepayers - with the right regulatory framework. California should be doing all it can to capture the $550 million per year in consumer benefits through VPPs, and AB 740 is a key part of that,” said Advanced Energy United’s California policy lead Edson Perez. “We commend Asm. Harabedian for putting forth a smart approach to ensure the state develops a framework geared towards the grid of the future.”
“Virtual power plants 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 co-sponsor AB 740 to accelerate the deployment of VPPS, and we’re grateful to Assemblymember Harabedian for his commitment to securing clean, affordable energy for all.”
“During the hottest days of the year, the utilities spend a lot of money to ensure we have the electricity to keep our lights and our air conditioning on. This bill creates ways to share our power and therefore keep the utilities and others from having to buy the most expensive power. This is a smart way to use our power wisely,” said Dan Jacobson, Senior Advisor to Environment California.
Assembly Bill 44 helps lower energy costs and improve energy reliability by simplifying how utilities can make use of demand-side technologies, including the technologies used in VPPs, to reduce electricity during peak times, resulting in consumer savings.
“AB 44 will further unleash the power of VPPs, by allowing utilities and CCAs to fully integrate VPPs into their planning, lowering their procurement obligations and reducing energy costs for their customers while maintaining reliable service,” added Perez.