Why California set out to change the energy storage landscape
November 25, 2015
California asserted itself two years ago as a major pioneer in the movement toward wider implementation of energy storage technologies both on the grid and behind the meter. By setting the largest energy storage target in the world by unanimous decision, the California Public Utilities Commission made its stance on the emerging power strategy perfectly clear. Energy storage will be a cornerstone element of its strategy going forward.
The CPUC plans to save up at total of 1,325 megawatts worth of storage capacity by 2020. Three main utilities - Pacific Gas and Electric Company, Southern California Edison and San Diego Gas and Electric - will do most of the heavy lifting over the next several years.
The commission arrived at that number, 1,325, after a two-year-long effort to analyze what targets are realistic for the state's utilities. It's an ambitious target, as it represents a sixfold increase in installed energy storage capacity from the state's current 35-megawatt level.
But why? What motivated the commission to commit so many resources to storage, a relatively untapped approach that's considered by many an unknown commodity? One state politician has the answer.
Harnessing power for the future
Nancy Skinner, a state assemblywoman representing California's 15th District, explained that the energy storage initiative will help the state manage its future power needs.
"California passed AB 2514 so that we would have the opportunity to harness excess electricity generation and use it when needed," said Skinner, a Democrat. "The CPUC's decision to ensure storage capacity will increase the reliability of our electrical grid and optimize solar, wind, and other renewable resources."
Excess electricity can prove to be a valuable resource at certain times. Companies find themselves saddled with large demands for power during peak times of day and the hot and cold seasons of the year. By stockpiling their resources - potentially using ice storage - they can save them for times of need. According to the San Diego Business Tribune businesses have turned to ice storage to save on electricity by shifting energy use for cooling away from premium power prices that coincide with daytime air conditioning demands.
Making green improvements
The CPUC's progress should also have a positive impact on the energy industry's green footprint. For example, by making a commitment to displace dirty peaker power plants with energy storage, the state of California can get rid of plants that are wasteful, obsolete and harmful to the environment. Such changes can potentially comply with the U.S. Clean Power plan.
With energy storage, the state can also defer expensive transmission and distribution upgrades. Instead, of spending money unnecessarily on suboptimal power technologies, the state can take innovative new approaches, such as storing renewable energy, a win-win for utilities and consumers.
