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 adopt a strategy to enable virtual power plants to be deployed at scale.
A Gridlab/Kevala study completed in August 2025 estimated that California utilities could use virtual power plants, made up of rooftop solar, batteries, and electric vehicles, to cut $13.7 billion in costs through 2030 by supplying clean energy to stressed local grids. 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.
Bill status: This bill was approved by the legislature on September 11, 2025, and is awaiting Governor Newsom’s signature.
Tell Governor Newsom to sign AB 740 below!
Please enter a valid California address to ensure your message reaches the correct decision-maker. By checking the box to receive text messages, you are agreeing to receive periodic texts with opportunities to take action for a climate-safe future. Message and data rates may apply. Text HELP for more information. Text STOP to unsubscribe.
Bill author
