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California Energy Storage Policies

Learn about the California storage law and policy, including the adoption of procurement targets, guidelines for the procurement process, cost containment measures, and storage procurement updates. This includes storage initiatives on the transmission, distribution, and customer sides, as well as coordination between CPUC and ISO.

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California Energy Storage Policies

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  1. California Energy Storage Policies Carla Peterman Commissioner, California Public Utilities Commission February 2017

  2. California Storage Law and Policy • Assembly Bill 2514 (Skinner), signed into law in 2010, required the CPUC to consider whether to set procurement targets for electric storage by October 2013

  3. California Storage Target Development • Guiding Principles • Use cases identified where benefits outweighed costs • Procurement framework and biennial targets adopted

  4. Procurement Targets • ESPs/CCAs must procure 1 percent of their annual peak load by 2020.

  5. Procurement Process • Allows for different ownership models, end uses, and technologies • Transmission and distribution storage must be procured via a competitive RFO • Utilities may own up to 50 percent of storage across Transmission, Distribution and Customer grid domains • Utilities may shift up to 80 percent of MW between Transmission and Distribution grid domains and 85 MW of customer storage to T&D

  6. Cost Containment • Utilities include a cost-effectiveness analysis of all bids received in RFOs • Utilities may defer up to 80 percent of MW to later periods with a showing of unreasonableness of cost or lack of operational viability • Ongoing evaluation and analysis of progress, with opportunity for mid-course corrections, as needed

  7. Storage Procurement (1/3) • 2014 RFO • PUC approved 87.3 MW of procurement (SCE-16.3MW, PG&E 71MW) • SDG&E used 2014 All Source RFO for compliance • IOUs were also able to use previously approved projects to meet target • Transmission and distribution connected • Mix of technologies including lithium ion batteries, zinc air batteries, flywheels

  8. Storage Procurement (2/3) • 2016 Procurement Plan • 219.3MW Authorized for SCE and PG&E • TX (65MW), distribution (63.5MW), and customer side (10.8 MW) – third party and utility owned • Load following, ancillary services, substation deferrals, bill management, permanent load shifting • No SDG&E plan since planning to fulfill all procurement through their 2016 LCR

  9. Storage Procurement (3/3) • 2013 Southern California Edison preferred resources RFO • 63 contracts executed; 23 energy storage • 50 MW storage min- 264.14MW procured (100 MW BTM) • Lithium-ion batteries, thermal storage • 2016 Aliso Canyon expedited procurement • 5 projects totally 64.5MW; 3 year and 10 year terms • Lithium-ion batteries

  10. Storage – Customer Side Solutions • On the customer side of the meter we see increased interest in storage technologies through our Self-Generation Incentive Program. • Last year the CPUC modified SGIP program rules to allocate 75% of the program budget to energy storage technologies. Estimated additional installation of 218-261 MW • AB2868 500 MW distributed and customer storage mandate

  11. Storage – CPUC / ISO coordination • 2014 Joint Energy Storage Roadmap • Station Power • Multi-Use Applications

  12. Next Steps • Evaluate 2016 RFO results • Address Storage Track 1 issues including station power • Implement AB2868 500 MW distributed and customer storage mandate • Integrated Resource Plans

  13. Thank you! For Additional Information: www.cpuc.ca.gov

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