The California Public Utilities Commission (CPUC) has urged the state's utilities to deploy energy storage technologies in order to improve grid reliability and integrate renewable energy capacity.
The CPUC has set a target for California's investor-owned utilities to install 1325 MW of cost-effective energy storage by 2020. The target is the result of a two-year regulatory process that studied the use of energy storage to help address the needs of the state's electricity grid.
"I believe energy storage has great potential to help us address grid reliability and renewables integration issues," said Commissioner Carla Peterman. "This decision is an important and appropriate step, especially considering the leadership role California has and continues to play in advancing progressive energy policy."
CPUC has set specified targets for energy storage capacity additions every two years. The organization says that greater storage capacity on the grid will help advance the closure of older power plants and defer investment in new transmission and distribution upgrades.
The state's installed energy storage capacity, excluding pumped storage hydropower plants, currently stands at 35 MW.
"The CPUC's decision to ensure storage capacity will increase the reliability of our electrical grid and optimize solar, wind and other renewable resources," said Assemblywoman Nancy Skinner. "This decision makes our state the global leader in energy storage, spurring innovation and creating jobs across California."
Large pumped storage hydro projects exceeding 50 MW in capacity are excluded from the targets. The state's three main utilities - Southern California Edison, San Diego Gas & Electric and Pacific Gas & Electric - cannot own more than 50 per cent of the storage projects.
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