How will the CPUC's directive impact California's energy supply strategy?

By 2037, the CPUC’s directive could lead to the completion of this procurement strategy, if bid costs are found to be reasonable and contracts are approved, enhancing California’s grid storage by up to 2 GW and increasing energy production by up to 8.6 GW.

Will energy storage save the energy industry?

It’s generation . . . it’s transmission . . . it’s energy storage! The renewable energy industry continues to view energy storage as the superhero that will save it from its greatest problem—intermittent energy production and the resulting grid reliability issues that such intermittent generation engenders.

Can energy storage resources be financed on a nonrecourse basis?

Key Finance-ability Provisions: Energy storage resources may also be financed on a nonrecourse basis and, like any other project financed in such manner, will need to address issues upon which nonrecourse lenders will focus, including assignment, events of default, performance requirements, key dates, and collateral.

Should California have a state agency to acquire Advanced Energy Resources?

By having one state agency procure these resources on behalf of ratepayers, California can streamline the acquisition of advanced energy resources, potentially lowering future costs for ratepayers and accelerating the development timeline for clean energy technologies. Key Highlights

How do energy storage contracts work?

For standalone energy storage contracts, these are typically structured with a fixed monthly capacity payment plus some variable cost per megawatt hour (MWh) of throughput. For a combined renewables-plus-storage project, it may be structured with an energy-only price in lieu of a fixed monthly capacity payment.

What are the implications of a combined renewables-plus-storage project?

There will be important implications for a combined renewables-plus-storage project depending upon whether the project is DC coupled or AC coupled. For example, AC coupled systems are generally viewed as being simpler since the renewable energy storage can be connected separately with AC power.