AB 740 (Harabedian) will accelerate the use of virtual power plants (VPPs), which are networks of clean, distributed energy resources like smart thermostats, home batteries, smart plugs, electric water heaters, and electric vehicles. When aggregated, these resources can deliver energy during peak demand hours, creating savings for the VPP participants and for all electricity customers by avoiding reliance on the strained electrical grid.
AB 740 would require the California Energy Commission to include virtual power plants in its modeling of energy supplies and adopt a strategy to enable virtual power plants to be deployed at scale.
A recent Brattle Group study found that VPPs could save Californians $550 million per year, $50 million of which would flow directly to ratepayers. VPPs can help reduce costs for all ratepayers by reducing the need to build poles and wires to accommodate growing electricity demand.
Clean, local, distributed energy is the cornerstone of California’s Grid for the Future. By harnessing the untapped power stored in distributed energy resources that millions of Californians already have in their homes and driveways, virtual power plants will keep the lights on during climate disasters, reduce reliance on fossil fuels, and make electricity more affordable for everyone.
Committee Location: Passed the Senate Appropriations Committee on August 29. Next, this bill will be heard on the Senate floor.
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