The California Public Utilities Commission (CPUC) has set a target for California investor owned utilities to procure 1.325GW of cost effective energy storage by 2020.
The target, which is the largest of its kind worldwide, is set to increase California's installed energy storage capacity six fold from its current 35MW (excluding large-scale pumped hydro storage). The decision is the result of a 2-year regulatory process that studied a multitude of innovative energy storage technologies and applications for meeting the state's growing grid needs. The CPUC's action sets targets for California's investor owned utilities and direct access providers to procure a specified amount of energy storage every two years through 2020, with targets increasing with each solicitation. Some energy storage facilities are expected to come into service as early as 2015, meeting grid needs such as phasing out dirtier power plants, deferring expensive transmission and distribution upgrades, and helping to integrate renewables. The first solicitation for new energy storage capacity will be required to occur no later than December 1, 2014.
