The current progress of energy storage in California

May 20, 2015

California positioned itself as the de facto leader in energy storage adoption after the state announced a mandate in 2013 that required its utilities to make over 1,300 megawatts of energy storage operational by 2024. This move falls under the state's broader climate goals to switch 50 percent of California's electricity production to renewables by 2030, according to Climate Central. Anne Gonzales, spokeswoman for California Independent System Operator, pointed out that energy storage is a critical step toward achieving renewable goals as the technology makes it possible to save the surplus energy produced by renewables and use it to consistently and reliably meet peak demands.

Two years into the mandate, California has already made strides in working toward its ambitious goals. This progress is especially good news for the energy storage industry, as the wide range of technological needs represented by the state's push toward 50 percent renewables has provided an equally diverse range of technologies with an opportunity to shine. Taking a closer look at how applications of energy storage in California are progressing demonstrates how the technology can be used elsewhere to mitigate the costs and improve the reliability of energy systems.

Impact analysis reveals benefits of energy storage integration
The momentum behind energy storage in California is evident in Strategen Consulting's latest impact analysis report, according to Energy Global. According to the initial analysis, the cost of energy storage implementation has fallen while policymakers have begun to take note of the potential for energy storage to add resiliency and reliability to the power grid. This has created a positive environment for energy storage growth as a means of more rapidly adopting solar and wind resources. In fact, the report pointed out that in order for the state to reach its 50 percent goal the state will require energy storage acting in a complementary role to renewables.

Strategen predicted that over 1 million new energy resources including wind, solar and energy storage. As a result, electricity consumers are predicted to save $51 billion annually from investments in energy storage and renewables.

Success in California as ice is deployed
Bloomberg Business noted that battery solutions are gaining popularity but are still expensive. In comparison, many more cost effective alternatives, such as ice storage, are already being set for deployment as part of California's renewable energy strategy. One California resort is saving more than $300,000 in energy costs thanks to infrastructure upgrades including ice storage. As a result, California's drive for a more cost-effective and reliable grid will continue to put energy storage in the spotlight.