Storage in California Golden Opportunity in the Golden State Scott - - PowerPoint PPT Presentation

Storage in California

Golden Opportunity in the Golden State

Scott Murtishaw, Consultant Electric Energy Storage North America San Francisco, CA July 10, 2018

Outline of Presentation

• Overview of current policies and programs supporting

storage in California

• Indicators of recent market activity
• Pending legislation that could affect the storage market
• Key regulatory actions at the CPUC
• Concluding thoughts on prospects for future growth

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Current Programs Supporting Storage

Self-Generation Incentive Program (SGIP)

• Utility program, overseen by CPUC that has included storage

since 2009

• Current incentive budget > $150 M per year
• 80% reserved for storage
• Funding authorization expires at the end of 2019

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Current Programs Supporting Storage, cont’d

Assembly Bill 2868 (2016)

• Requires the 3 large IOUs to

propose up to 500 MW of distributed storage

• No more than 25% customer-

sited

• CPUC invited IOUs to

propose additional storage using process implemented for AB 2514 Assembly Bill 2514 (2010)

• Required the CPUC to

consider storage targets

• In response, CPUC

established 1325 MW mandate for 3 large IOUs

• Storage must be procured by

2020 and installed by 2024

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Net Energy Metering and Rate Design Encourage Storage

• CPUC’s 2016 “NEM

2.0” decision requires customers on NEM tariffs to take TOU rate

• CPUC 2017 TOU

Guidance decision pushes peak periods back to 4 pm to 9 pm time frame

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$- $0,05 $0,10 $0,15 $0,20 $0,25 $0,30 $0,35 $0,40 $0,45 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

PV Production (kW) vs TOU Rates

AC output, kW TOU 2016 TOU 2018

SGIP Program Activity (MW)

50 100 150 200 250 2011 2012 2013 2014 2015 2016 2017 2018 Canceled Reserved/Pending Paid/in Progress

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SGIP Activity by Steps

Source https://www.selfgenca.com/home/program_metrics/

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Utility Procurement Activity

Utility Amount, MW Status PG&E 70 Approved PG&E 165 Pending SCE > 300 Approved SCE 135 Pending SDG&E 40 Approved SDG&E >180 Pending

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Pending Legislation – SB 700 (Wiener)

• Would extend collection of behind-the-meter storage

incentives (via SGIP) for an additional five years.

• $120 million per year x 5 years = $600 million
• Funds would be collected through Dec. 31, 2024, expended

through Dec. 31, 2025.

• Depending on incentive structure, could incentivize 2000 –

3000 MW of storage

• SB 700 passed the Assembly Utilities & Energy committee on

June 20th with a bi-partisan 14-1 vote. Bill has three more steps before it reaches the governor’s desk to become law.

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Pending Legislation – SB 1347 (Stern)

• Senate Bill 1347 as introduced, would require all “load-

serving entities” (investor-owned utilities, CCAs, ESPs) to procure their proportionate share of 2000 MW of storage

• Allows IOUs to own up to 50% of the share allocated to them
• Does not specify if in front of or behind-the-meter
• Passed Senate in May
• Assembly U&E committee unanimously passed modified

version, which would authorize but not require up to 2000 MW, on June 27

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Other Programs Driving Future Demand

• CPUC is establishing a framework for IOUs to procure DERs

to provide local services

• avoided transmission or distribution capacity
• voltage support
• Several solicitations for pilot procurements have been issued
• Focus to date on competitive solicitations but a recent ruling

reaffirms CPUC’s interest in streamlined mechanisms

• Various IOU solicitations for local generation capacity
• SCE’s West LA Basin and Moorpark solicitations
• PG&E’s Oakland Clean Energy Initiative

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Concluding Thoughts

• Numerous bills and CPUC decisions demonstrate strong

support for both utility-scale and behind-the-meter energy storage

• Broad mandates and incentives have driven most storage

adoption to date and will likely continue for near-term

• Increasingly, the CPUC is looking to more targeted

procurement for generation capacity (local, flexible) and distribution-level services to drive the market

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