Energy Storage Standards, Conformance and Technology

Size: px
Start display at page:

Download "Energy Storage Standards, Conformance and Technology"

Transcription

1 Energy Storage Standards, Conformance and Technology Creating Storage Policy for Decarbonization, Affordability, Safety and Reliability: The California Experience Diane I. Fellman, Esq. Senior Policy Analyst California Public Utilities Commission May 24,

2 Disclaimer This presentation was prepared by California Public Utilities Commission (CPUC) staff. It does not necessarily represent the views of the CPUC, its Commissioners, or the State of California. The CPUC, the State of California, its employees, contractors, and subcontractors make no warrant, express or implied, and assume no legal liability for the information in this presentation. It has not been approved or disapproved by the CPUC, nor has the CPUC passed upon the accuracy or adequacy of the information in it. 2

3 California Statistics Population: 39,500,000 (1 st in US) Kenya: 49,125,325 Area: 163,696 sq. mi. Kenya: 224,080 5 th Largest Global Economy Diversity of Natural Resources Statewide peak demand: ~ 76,500 MWs Kenya: 2336 MWs installed 3

4 Federal v. California FERC Electric transmission and wholesale rates and services Hydroelectric dam licensing and safety Natural gas pipeline transportation rates and services Reliability Grid operators CPUC CEC Independently owned utilities Retail electric rates Generation planning and procurement Distribution infrastructure investment Power plant siting approvals Thermal >50 MW Appliance and Building Efficiency Standards Demand Forecasting Investing in Energy Innovation Transforming Transportation CAISO Manages the flow of electricity across the highvoltage, long-distance power transmission lines Operates a competitive wholesale power market

5 California Energy Policy Foundations Affordability Safety Consumer Protection Reliability & Resiliency Just and Reasonable Rates Decarbonization 5 Equitable Access to Services

6 California s Policy Goals: Details 50% of retail energy from renewable power by 2030 Greenhouse Gas Emissions Reduction to 40% below 1990 levels by % below 1990 levels by 2050 Shut down powerplants using coastal water for cooling Increased distributed generation, including storage 5 million zero emission vehicles by

7 Success of California s Policies 7 Reduce GHG emissions while growing the economy and Source: 2017 California Integrated Energy Policy Report (IEPR), CEC

8 Success of California s Policies Per capita electricity use stayed flat while increasing nationally California Integrated Energy Policy Report (IEPR), CEC

9 Renewables* Penetration in California *Does not include large hydro or nuclear Source: CAISO What are we doing to green the grid? 9

10 Challenges to the Grid from Renewables This is the Duck Curve: High Ramps due to Renewables Actual Renewables Output: Tuesday, May 15,

11 Storage Mitigates Grid Impacts: Resilient Reliable Efficient Ratepayer Costs must be considered 11 Source: California Energy Storage Alliance Storage 101

12 California Storage Policy Approaches Statutes Mandates Incentives Processes Legislation Mandated Procurement Technology Neutral & Diversity of Size Priority over fossil fuels for grid resiliency BTM*: Self-Generation Incentive Program Interconnection Resource in Wholesale Markets Rate design: Time of Use; Net Metering Expanded Revenue Long-term Contracting Multiple Use Applications: Storage/Solar Ancillary Services and Load Shifting Integrate Renewables 12 Detailed References Provided on Last Slide *Behind the Meter

13 California Storage Policy Barriers Cost Storage costs exceeded other resources for all applications Technology Technologies are under development and have not yet gone to scale Applications may not match grid needs e.g. duration Timing Procurement process and permitting may cause delays 13 Detailed References Provided on Last Slide *Behind the Meter

14 14 Storage Technologies in California

15 Growth of Storage in California Text goes here 15

16 Conclusion: Where does storage belong? 16 All of the above: Source: Pacific Gas & Electric Company

17 Under2 MOU: Climate Initiative Under2 MOU is a commitment by sub-national governments to reduce their GHG emissions by 80-95% on 1990 levels or to 2 metric tons of carbon dioxideequivalent per capita, by Laikipia County, Kenya is a signatory and working on land management practices 17

18 References Advancing and Maximizing the Value of Energy Storage Technology: A California Roadmap (2014) California Public Utilities Commission (CPUC), California Energy Commission (CEC) and California Independent System Operator (CAISO), CPUC Energy Storage Webpage includes links to: AB 2514 (Skinner, 2010) Rulemaking Rule 21 Storage Roadmap Reference Documents Self Generation Incentive Program (SGIP) Legislation directing CPUC to create a storage procurement Mandate CPUC storage proceeding that developed procurement targets for 1,325 MWs Interconnection proceeding to promote grid interconnection of storage Implementation of Joint Agency storage protocols (see link above) SGIP provides rebates for storage facilities on the customer side of the meter Aliso Canyon Install 98.5 MW of storage to offset natural gas usage due to leakage at natural gas field Tracking Storage Progress in California CEC Tracking Progress: Energy Storage ( ) CAISO: Renewables and emissions reports Governor Brown: Climate Investments Executive Order January, 2018 Under2mou.org California Energy Storage Alliance Storage Trade Association comprised of storage companies 18

19 Kenya Energy Statistics Source: Ministry of Energy 19

20 Thank you! For Additional Information: 20