In what is a groundbreaking decision, the California Public Utilities Commission (CPUC) has confirmed the proposed 1,325 MW energy storage procurement target for the state’s three investor-owned utilities by 2020.
This is comprised of 580 MW for each of Pacific Gas and Electric and Southern California Edison, and 165 MW for San Diego Gas & Electric, with installations required no later than the end of 2024.
Under the decision – the first of its kind in the U.S. – the three utilities are directed to file separate procurement applications containing a proposal for their first energy storage procurement period by March 1, 2014.
The decision also establishes a target for community choice aggregators and electric service providers to procure energy storage equal to 1 percent of their annual 2020 peak load by 2020 with installation no later than 2024 – consistent with the requirements for the utilities.
“This decision represents an important first step in encouraging the storage market and supporting grid reliability,” said Commissioner Carla J. Peterman, who led the proceeding.
The guiding principles of the decision are:
- Optimization of the grid, including peak reduction, contribution to reliability needs, or deferment of transmission and distribution upgrade investments
- Integration of renewable energy
- Reduction of greenhouse gas emissions to 80 percent below 1990 levels by 2050, per California’s goals.