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 09/11/2026, 18:08:25 UTC.

Briefings

California's SB913 law aims to transition virtual power plants (VPPs) from emergency pilots to core utility capacity by breaking them out of the 'emergency box' into resource adequacy markets. Key facts include the law's September 2026 signing by Gov. Gavin Newsom, which mandates device-level data measurement to avoid double-counting, and the CPUC's upcoming 18-month proceedings to finalize implementation. The central finding is that while the law provides a pathway, technical and regulatory hurdles regarding telemetry accuracy and payment structures remain significant barriers to scaling VPP participation.

Key points

• SB913 signed by Gov. Gavin Newsom in late September 2026 directs regulators to enhance market integration pathways for aggregated distributed energy resources (DERs) to qualify for resource adequacy.
• The law requires CPUC proceedings over the next 18 months to finalize implementation, specifically addressing device-level telemetry accuracy and avoiding double-counting of capacity credits.

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.

Limitations

Evidence covers the legislative signing and regulatory framework but does not include specific implementation timelines, exact payment rates, or confirmed operational performance data from the upcoming CPUC proceedings.

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