AB 740 aims to lower energy costs and strengthen the grid by requiring California's energy agencies to develop a statewide VPP deployment plan. This plan would help make electricity more affordable and improve grid reliability, especially during grid emergencies. 

 

"AB 740 would enable California to fully capture the significant energy affordability and reliability benefits of virtual power plants, which tap into the clean energy devices Californians are already using, such as home batteries, electric vehicles, and smart appliances, to deliver cost effective clean power that will help avoid blackouts and lower energy costs for everyone," said Edson Perez, California lead at Advanced Energy United. 

 

The California Senate Energy Committee also advanced AB 44, a bill that would streamline how utilities can use distributed energy resources to reduce electricity use during peak demand. 

 

"Tapping into the advanced energy resources already found in our homes, driveways, and roofs can help us build a more reliable and flexible grid that is better prepared to withstand peak demand. This bill simply clarifies an existing regulatory process so that those distributed energy resources can be leveraged to lower costs for everyone. This will significantly increase adoption and get us one step closer toward a cleaner, more affordable energy future," Perez added.

 

These VPP bills are critical to California unlocking the full benefits of VPPs at scale, which have been estimated to be over $550 million per year in energy savings.