California links 100,000 home storage batteries through its Virtual Power Plant program.
California's virtual power plants (VPPs) are setting new standards in grid support and scalability, with companies like Sunrun and Tesla taking the lead. In a recent statewide test on July 29, 2025, over 100,000 residential batteries, coordinated by these two pioneering companies, delivered an average of 535 MW between 7 and 9 p.m., helping to manage the "duck curve" evening load ramp and prevent grid outages.
Sunrun, a key player in this initiative, managed the majority of the participating residential batteries. Tesla, on the other hand, contributed around one-third. These batteries, including Tesla's Powerwall, are part of an ambitious VPP integrating distributed grid assets.
The Powerwall, with its enhanced 11.5 kW output, played a significant role in this achievement. It discharged safe amounts of power to support the grid during the event, and owners received compensation for their participation.
Customers have total control over their participation in VPP events. They can set a Backup Reserve level, opt out of a single event, or suspend participation altogether. Participating customers will receive push notifications when an event is scheduled or begins, and their Powerwall system will prioritize charging and prepare for an event after one is scheduled.
In contrast, Australia's VPP initiatives are developing but somewhat less centralized or large-scale compared to California. However, they are growing alongside advancements in AI-driven energy management, second-life EV battery reuse, and cybersecurity to safeguard the smart grid.
Nationwide, a Department of Energy study during the Biden administration forecast that VPP capacity could reach up to 160 gigawatts by 2030. In 2024, utilities in 34 states moved to initiate or expand VPP networks. The California Public Utilities Commission (CPUC) and the California Energy Commission (CEC) created programs like the Emergency Load Reduction Program (ELRP) and Demand Side Grid Support (DSGS) to reward people and companies for reducing electricity use or providing backup power when the grid is stressed.
Customers receiving electric services from PG&E or Community Choice Aggregation (CCA) within PG&E service territory can participate in the Tesla Powerwall VPP program. They will receive $2.00 for every additional kWh their Powerwall delivers during an event. The program does not enroll customers in a non-utility demand response program or another virtual power plant.
In summary, California leads the world in operational scale and utility integration of VPPs, with Tesla and Sunrun as key players driving this effort. Australia's VPP progress is promising, driven by Tesla Powerwall adoption and emerging grid services, but still growing toward comparable scale and integration.
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