Energy

What will it take to open California’s market to more VPPs?

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 06/11/2026, 18:38:25 UTC.

Briefings

California's SB913 law aims to integrate virtual power plants (VPPs) into the core resource adequacy market by shifting from emergency pilots to formal utility capacity. Key challenges include measuring device-level performance accurately and defining payment structures for bidirectional energy exports. The bill was signed by outgoing Governor Gavin Newsom in late September, with implementation spanning two key CPUC proceedings over the next 18 months. While the law removes barriers to multi-device enrollment, regulators retain significant discretion over measurement methods, creating uncertainty for aggregators.

Key points

• SB913 signed by outgoing Governor Gavin Newsom in late September directs regulators to enhance market integration pathways for aggregated distributed energy resources (DERs) to qualify for resource adequacy.
• The law requires capacity determinations to be tech-neutral, performance-based, and weather normalized, placing the onus on aggregators to deliver promised supply during specific dispatch hours.

Context

California's new distributed energy resource law aims to turn the state's vast fleet of customer-sited resources into formal utility capacity, moving virtual power plants out of the emergency pilot stage and into the core resource adequacy market. This shift addresses hourly capacity crediting and multiple devices behind one meter, addressing barriers that previously prevented VPPs from scaling beyond historical limitations.

Limitations

Evidence is limited to the article's discussion of SB913 provisions and expert quotes. Specific implementation timelines, exact regulatory outcomes, and detailed financial figures for export payments remain unconfirmed. The article notes that device-level data is not foregone conclusion and that regulators retain significant discretion over measurement methods, creating uncertainty for aggregators.

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