The California Public Utilities Commission (CPUC) established a combined energy storage target of 1,325 megawatts (MW) for Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas & Electric by 2020, with installations required no later than the end of 2024. (MW represents the peak power capacity of the storage resource in terms of the maximum discharge rate.)
The decision, pursuant to Assembly Bill 2514, directs the utilities to file separate procurement applications containing a proposal for their first energy storage procurement period by 1 March 2014.
|Procurement targets allocated to each of the three investor-owned utilities (IOUs). Source: CPUC. Click to enlarge.|
The decision further establishes a target for Community Choice Aggregators and electric service providers to procure energy storage equal to 1% of their annual 2020 peak load by 2020 with installation no later than 2024, consistent with the requirements for the utilities.
Starting on 1 January 2016, and every two years thereafter, community choice aggregators and electric service providers must file a Tier 2 Advice Letter demonstrating their compliance towards meeting the target and describing their methodologies for cost-effective projects.
The guiding principles of the decision were:
the optimization of the grid, including peak reduction, contribution to reliability needs, or deferment of transmission and distribution upgrade investments;
the integration of renewable energy; and
the reduction of greenhouse gas emissions to 80% below 1990 levels by 2050, per California’s goals.