California will not provide new funding for the Demand Side Grid Support program, a virtual power plant effort that state officials had considered their most successful. The final budget language, released last week, did not authorize additional money, and an effort to keep the program funded through next year was blocked by Gov. Gavin Newsom's administration.
The decision effectively ends state support for the program, according to Canary Media. It is unclear whether the program will continue in some reduced form or shut down entirely without the expected state funding.
The move removes a grid reliability tool that California had relied on, even as the state continues to face challenges in meeting electricity demand during peak periods.