Energy storage centralized procurement
On April 26, 2024, Administrative Law Judge Julie Fitch of the California Public Utilities Commission (CPUC) issued a ruling seeking comments on the use and implementation of a centralized procurement mechanism established in Assembly Bill (AB) 1373, through which the CPUC can instruct the California Department of Water Resources (DWR) to procure electricity on behalf of all load-serving entities (LSEs) from certain eligible long lead-time generation resources, such as offshore wind (OSW), geothermal, and long-duration energy storage (Ruling). 1 This centralized procurement mechanism could play a critical role in the development of a variety of long lead-time resources, and in particular, stimulate the growth of California’s nascent OSW industry by providing market assurance to developers while sparing LSEs of much of the uncertainty surrounding emerging generation technologies and procurement risk associated with capital-intensive, long lead-time projects.
As the photovoltaic (PV) industry continues to evolve, advancements in Energy storage centralized procurement have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
6 FAQs about [Energy storage centralized procurement]
What is the AB 2514 energy storage procurement policy?
In 2013, the CPUC issued Decision (D.)13-10-040 which set an AB 2514 energy storage procurement target of 1,325 megawatts (MW) by 2020. The CPUC's energy storage procurement policy was formulated with three primary goals: Greenhouse gas (GHG) reductions in support of the State's targets.
When will energy storage be available?
This procurement target was set for implementation by 2020, with installations no later than the end of 2024. D.13-10-040 also required Community Choice Aggregates (CCAs) and Energy Service Providers (ESP) to procure energy storage equal to 1 percent of their annual 2020 peak by 2020.
Should California have a state agency to acquire Advanced Energy Resources?
By having one state agency procure these resources on behalf of ratepayers, California can streamline the acquisition of advanced energy resources, potentially lowering future costs for ratepayers and accelerating the development timeline for clean energy technologies. Key Highlights
How many MW of energy storage will be built in SCE?
Resolution E-4937 approved SCE's energy storage solicitation to comply with SB 801. To date the CPUC has approved procurement of more than 1,533.52 MW of new storage capacity to be built in the State. Of this total 506 MW are operational.
What did the energy storage rulemaking entail?
This rulemaking identified energy storage end uses and barriers to deployment, considered a variety of possible policies to encourage the cost-effective deployment of energy storage systems, including refinement of existing procurement methods to properly value energy storage systems. This rulemaking resulted in two CPUC Decisions, which are:
Does energy storage meet local and system capacity requirements?
R. 13-12-010: This rulemaking determined that energy storage can meet local and system capacity requirements R. 14-08-013: This rulemaking determined that energy Storage may be included as a distribution upgrade deferral asset. R.14-10-010: This rulemaking determined that energy storage's ramping attributes can provide flexible capacity.