It Worked for Renewable Energy. Can it do the Same for Virtual Power Plants?

By Elisa Wood, Energy Changemakers

Over half of US states use renewable portfolio standards (RPS) to boost green energy. Now, a California state senator is proposing applying the same concept to virtual power plants (VPP).

State Sen. Henry Stern, a Democrat, has introduced legislation requiring “load-serving entities,” such as California’s utilities and community choice aggregators (CCAs), to meet a percentage of their resource needs through virtual power plants.

In an interview last week, Stern said the virtual power plant industry has matured to the point where it’s time to bring it into “the mainframe of the energy discussion” and not treat it as a niche.

If passed, SB 1305 would make California the first state in the nation to apply the RPS approach to boost the development of virtual power plants. 

Like RPS programs—which typically require utilities to procure a percentage of their generation from renewables—the bill would set targets for virtual power plant use that must be met by specific dates.

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