Calif. Utilities Commission Proposes Energy Storage Targets

The California Public Utilities Commission (CPUC) has issued a proposed decision for energy storage targets and policies to bring about rapid deployment of grid-scale energy storage in the state.

According to the California Energy Storage Alliance (CESA), the proposed decision's framework provides essential goals and a timeline for the implementation of AB 2514, which became law in 2010.

Under AB 2514, the CPUC was required to open a proceeding to consider developing energy storage procurement targets for California utilities to integrate grid-scale storage into the state’s electrical power system if determined to be viable and cost-effective. The CESA says the CPUC has now developed a proposed framework for implementing the law.

Some of the highlights of the proposal are as follows:

-The proposed framework outlines specific, year-by-year energy storage procurement targets for Southern California Edison, San Diego Gas and Electric, and Pacific Gas -and Electric. By 2020, the three are expected to have contracted for 1.325 GW of energy storage for their operations;

-The proposed targets increase between 30% and 55% every two years, creating economic incentives for multiple players with various technologies to enter the market;

-Utilities will be allowed to employ energy storage for a variety of functions, such as capacity, ancillary services and peak shaving, which will provide real-world data for further market evaluation;

-Utilities may own some energy storage systems and will procure at least 50% from independent developers across all segments of the grid via existing procurement processes or “all-source” solicitations starting in 2014; and

-The first solicitation for new energy storage capacity will be required no later than December 1, 2014.