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 07/11/2026, 02:53:26 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.' Key facts include the September 2026 signing by Gov. Gavin Newsom, which mandates resource adequacy market integration for aggregated distributed energy resources (DERs). The bill addresses hourly capacity crediting, multi-device metering, and battery export recognition. However, implementation faces significant measurement challenges: regulators must decide whether to accept device-level telemetry or rely on meter readings, creating a barrier for aggregators using algorithmic estimates. Industry experts warn that without clear rules on double-counting and incremental value, VPPs may remain limited to 800 MW of actual response despite 1000 MW enrollment. The CPUC will conduct two key proceedings over the next 18 months to resolve these technical and regulatory hurdles.

Key points

• SB913 signed in September 2026 by Gov. Gavin Newsom to move VPPs from emergency pilots to core utility capacity markets.
• Aggregators face a critical measurement challenge: regulators must choose between accepting device-level telemetry or relying on meter readings to verify performance.

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 is limited to the article's discussion of SB913 provisions and industry reactions. Specific measurement methodologies, exact regulatory timelines beyond the 18-month window, and precise payment interaction rules remain unaddressed. The article notes the CPUC will conduct proceedings but does not provide definitive outcomes or specific dates for those proceedings.

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