(SACRAMENTO, CA) – Today, Assemblymember John Harabedian (D-Pasadena) successfully passed AB 740, Energy Affordability: Virtual Power Plants, off the Assembly Floor, sending this critical bill to the Governor’s desk.
Virtual power plants (VPPs) connect smaller energy devices (like solar panels, home batteries, smart appliances, etc.). These devices are called Distributed Energy Resources (DERs) because they’re spread out across different locations, usually close to where people live or work, and connected to the local power grid.
“Virtual Power Plants present a smart, homegrown solution that balances the grid, lowers costs, and accelerates clean energy,” said Assemblymember John Harabedian (D-Pasadena). “With AB 740 now on the Governors desk, California is one step closer to unleashing the clean energy already powering homes to lower energy costs for all of our communities."
The main purpose of AB 740 is to tackle California's electricity affordability crisis by requiring the California Energy Commission to create a statewide plan for scaling up VPPs. At scale, VPPs could save Californians hundreds of millions of dollars annually while providing direct benefits to participants and lowering rates for customers.
"Virtual power plants will make California's electricity cleaner, cheaper, and more reliable, especially in the face of extreme heat and wildfire risks," said Kurt Johnson, Community Energy Resilience Director for The Climate Center. "We're grateful for Assemblymember Harabedian's commitment to securing clean, affordable energy for all, and we urge the governor to sign AB 740 into law."
Edson Perez, California lead at Advanced Energy United, says, “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 clean energy technologies, and lowering energy costs for everyone. AB 740 will unlock this potential and turn these virtual power plant networks into an everyday source of affordable and reliable power that keeps costs down for all Californians.”
AB 740 will receive the Governor’s decision to sign or veto the bill by October 12th at the latest.
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Assemblymember John Harabedian represents the 41st District composed of the cities of La Cañada Flintridge, Pasadena, Altadena, Sierra Madre, Monrovia, Bradbury, San Dimas, La Verne, Claremont, Upland, Rancho Cucamonga, Oak Hills, Piñon Hills and Phelan.
