Virtual Power Plant bills (Assembly Bills 740 and 44) passed the California legislature and now await the Governor’s signature
SACRAMENTO, CA—California lawmakers have taken an important step to address the state’s energy affordability challenges by approving two virtual power plant (VPP) bills, Assembly Bills (AB) 44 and 740, which now await the Governor’s signature.
AB 44 will streamline how utilities use distributed energy resources (DERs) and take advantage of existing VPP programs to reduce electricity demand and lower costs for ratepayers.
"California is leaving millions in energy savings on the table by shutting out demand-side resources like batteries, EVs, and smart thermostats from energy planning with opaque rules," said Edson Perez, California lead at Advanced Energy United. “AB 44 will unlock this potential by giving load-serving entities a clear way to count demand flexibility and virtual power plants toward their obligations, cutting unnecessary power purchases and lowering costs for everyone."
AB 740 will unlock the full potential of distributed energy resources (DERs) like smart thermostats, EVs, and home batteries to improve reliability and lower ratepayer costs.
The bill requires the California Energy Commission, in collaboration with the Public Utilities Commission and the California Independent System Operator, to develop a comprehensive VPP deployment plan, enabling the coordination of millions of those DERs into a flexible power source.
Perez adds, "Virtual power plants can respond quickly to deliver power or shift load, making the most out of our existing grid, giving consumers new ways to benefit from the clean energy technologies they've already invested in, and lowering costs for everyone. AB 740 will unlock this potential and turn these virtual power plant networks into a consistent, everyday source of affordable and reliable power that keeps costs down for all Californians."
Advanced Energy United urges Governor Newsom to sign AB 44 and 740 into law to enable a more flexible, resilient, and affordable energy future.
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