Governor Brown's energy goals are good for California's building owners

February 25, 2015

California Governor Jerry Brown made a strong endorsement for renewable energy in California during his inaugural address earlier this year - Brown challenged the state to reach 50 percent renewable capacity by the end of 2020, and to ramp up California's previous energy efficiency benchmark for the next five years from 33 percent, according to The Motley Fool. This is great news for California businesses, as reduced dependence on fossil fuels will help to curb utility costs. The news is also a signal for greater investment in energy storage. Energy storage helps to make renewable forms of energy, like wind, more viable by capturing and storing more capacity while being able to reduce peak demand when renewables, like solar, are unavailable.  Building owners may avoid steep demand charges (kW) and significantly reduce operating costs by storing renewable energy ahead of when they need it.

The Sunshine State is already on its way
The Motley Fool pointed out that California is already a hot spot for renewable energy, so the region is better equipped than most to achieve 50 percent renewable capacity. Beyond widespread implementation of solar photovoltaic panels and energy storage, there are other factors that will help in meeting its energy efficiency goals. Solar energy is extremely accessible on a residential, commercial and utility scale, thanks to special rates on solar leases and purchasing agreements. Furthermore, wind energy has slowly begun to bolster the state's renewable capacity, making Governor Brown's goal even more achievable by 2020.

Energy storage is critical to meeting Brown's goal
Energy storage technology has been gaining ground in California in nearly every power market. In the last year, 10 businesses have enrolled in California's permanent load shifting program and are using thermal energy storage to store energy during less expensive off-peak hours. The recent investment in ice-based thermal storage by Southern Edison California also demonstrates the technology's advantages at the utility scale. More buildings and campuses in California are likely to look into energy storage as a means of shifting energy usage. The technology helps California shift to 50 percent renewable capacity.

Other states following in California's path
In addition to supporting the development of energy storage and renewables in California, Brown's speech also brought attention to other states where renewables and energy storage are quickly become more essential. NBC News emphasized that New York and New Jersey are acting as market drivers for energy storage as well. New York's Con Edison, for instance, is already incentivizing building owners to install energy storage technology with rebates. The utility hopes this behind-the-meter storage strategy will help to reduce stress on the grid.