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Newsom finally says yes to virtual power plants
Canary Media
October 1, 2026
Climate Policy
Energy Transition
Authored
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Published
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This article reports that California Governor Gavin Newsom, in one of his final major energy actions before leaving office, signed a package of bills aimed at containing utility spending and curbing the state's soaring electricity costs, including two measures that significantly expand the role of virtual power plants. Virtual power plants aggregate customer-owned devices such as rooftop solar-charged batteries, EV chargers, and smart thermostats to reduce grid stress during peak demand, serving as a cheaper alternative to costly transmission investments and gas-fired power plants. The piece notes that California has lagged other states in tapping these resources and that Newsom had been unfriendly to VPPs in recent years, having vetoed similar bills previously. Key measures SB 913 and SB 905 instruct the California Public Utilities Commission, working with the Energy Commission and the grid operator, to better measure and reward the grid value of these distributed devices, while related provisions rein in utility profits and monitor whether delayed transmission buildouts stay on schedule. The article highlights that the state's large investor-owned utilities strongly opposed these provisions, and that advocates see the signings as a meaningful step forward, even as Newsom vetoed a separate bill targeting community solar-battery systems... Click below to read more
Canary Media
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