(SACRAMENTO, CA) - Today, Assemblymember John Harabedian (D-Pasadena) introduced AB 740 to lower energy costs and promote grid reliability by using Virtual Power Plants.
A Virtual Power Plant is a system of distributed energy resources—like rooftop solar panels, electric vehicle chargers, and smart water heaters—that work together to balance energy supply and demand on a large scale. Virtual power plants can build a more flexible and decentralized power system, reduce emissions, and increase energy security and independence.
"As Californians face high energy bills, virtual power plants offer a simple solution - using clean energy already in our homes to stabilize the grid, lower costs, and strengthen our future. I'm proud to partner with Advanced Energy United and Environment California to make energy cleaner and more affordable in our state," said Assemblymember John Harabedian (D-Pasadena).
“California is undergoing an electricity affordability crisis, and virtual power plants are a key tool that can drive down costs for everyone by leveraging technologies already found in people’s homes and businesses,” said Edson Perez, California lead at Advanced Energy United. “Virtual power plants will provide communities with a cleaner and more resilient energy system while helping lower energy costs for all Californians.”
“A growing number of Californian households have adopted appliances – from heat pumps to EV chargers to home batteries – that could share excess energy, make their communities more resilient from power outages and allow clean energy to power more of our lives,” said Laura Deehan, Environment California’s state director. “It just makes sense to support programs that allow Californians to share clean, affordable energy with their neighbors.”
In short, this bill will do the following:
- Require the California Energy Commission (CEC) to do modeling of Virtual Power Plants (VPPs) on electricity costs and rate reduction in the biennial Integrated Energy Policy Reports (IEPR).
- Mandate the CEC submit a VPP implementation plan to the Legislature with goals and milestones as part of the IEPR.
- Require investor-owned utilities (IOUs) to report annually on their progress toward meeting the state’s load shift goal.
This bill is sponsored by Advanced Energy United and Environment California.
The bill will be heard in Assembly policy committees during the spring.
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