Energy Storage to Play Key Role for California

Energy Storage to Play Key Role for California to Reach Target of 100% Zero-Emission Electricity by 2045

SACRAMENTO, Calif., Sept. 10, 2018 (GLOBE NEWSWIRE) — The California Energy Storage Alliance (CESA) applauds the California State Legislature for passing landmark Senate Bill (SB) 100, making California the largest U.S. state to set such an aggressive zero-emission electricity target. Since 2010, California has procured 1,514 MW of new energy storage capacity to support the grid – by far the most of any state.

SB 100 would mandate 100% zero-emission electricity by 2045, with 60% renewables to be achieved by 2030. The bill now awaits the signature of California Governor Jerry Brown, who could sign it into law this week at the Global Climate Action Summit in San Francisco. The bill will update SB 350, passed into law in 2015, that requires retail sellers and publicly owned utilities to procure 50% of their electricity from eligible renewable energy resources by 2030. California efforts to date have been so successful that state legislators believe more aggressive targets are achievable.“Energy storage will be required to help meet this goal, and CESA members are ready with innovative systems and services to make that happen,” stated Janice Lin, Co-Founder and Executive Director of the California Energy Storage Alliance. “Our members offer diverse technology solutions to meet a variety of grid needs using energy storage, from fast-ramping hourly resources to longer-duration bulk storage. Energy storage, as a broad asset class, is able to integrate intermittent renewable energy and optimize existing assets for a cleaner, more affordable and reliable grid. California is the world’s fifth-largest economy and a true innovation engine – we’re creating the grid of the future.”

California investor owned utilities are already demonstrating their leadership toward achieving SB 100 goals. For example, last month Southern California Edison (SCE) submitted its Integrated Resource Plan (IRP) to the California Public Utilities Commission highlighting the significant role energy storage will play in achieving the state’s 2030 electric sector greenhouse gas (GHG) emission reduction goals. SCE models showed that in order to reduce its electric sector GHG emissions to 28 MMT by 2030, California load serving entities would need to procure an additional 9,604 MW of energy storage.

To support energy storage deployments and greenhouse-gas reduction goals, two additional energy storage bills that complement SB 100 await Governor Brown’s signature. The first bill, SB 700, adds more than $800 million in incremental buy-down incentive funding for behind-the-meter storage and extends the Self Generation Incentive Program (SGIP) through 2026. To date, the SGIP has successfully contributed to 318 MW of behind-the-meter energy storage procured in California. The second bill, SB 1369, for the first time defines green electrolytic hydrogen as an eligible form of energy storage to help address the future long-duration and seasonal storage requirements that will be required in California’s zero emission electric future. When signed into law, these bills will ensure that the California marketplace for energy storage will continue to expand dramatically in coming years, and that the state will continue to be one of the largest energy storage markets in the world.