Virtual power plants: load shifting: integrated energy policy report.

Assembly Member Harabedian's virtual power plant legislation directs the California Energy Commission to develop a comprehensive deployment plan for coordinating distributed energy resources across the state's electrical grid. The plan, due by November 2026, must evaluate how aggregated networks of smart devices - from electric vehicle chargers to battery storage systems - can help balance electricity supply and demand while reducing peak usage.

The bill establishes specific requirements for the Commission's planning process, including consultation with utilities, grid operators, and disadvantaged communities. Through mandatory public workshops and stakeholder sessions, the Commission must assess barriers to implementing virtual power plants, analyze their cost-effectiveness compared to alternatives, and recommend ways to maximize benefits for both participating and non-participating ratepayers. The plan must also examine how virtual power plants can qualify as resource adequacy assets and reduce obligations for load-serving entities.

To track progress on existing state energy goals, the legislation requires electrical corporations to submit annual reports detailing their contributions toward meeting California's load-shifting targets. These reports, combined with the virtual power plant deployment strategy, will become part of the state's integrated energy policy report - providing a framework for coordinating distributed resources to enhance grid reliability and reduce demand during peak periods.