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ARTICLE · 20 JULY 2013

California Proposes Energy Storage Procurement Requirement

McDermott Will & Emery
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The California Public Utilities Commission (CPUC) recently released a proposal that would require the major investor-owned utilities (IOUs) in the state to procure approximately 1.3 gigawatts (GWs) of energy storage by 2020.

United StatesEnergy and Natural Resources
Melissa Dorn
Melissa Dorn
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The California Public Utilities Commission (CPUC) recently released a proposal that would require the major investor-owned utilities (IOUs) in the state to procure approximately 1.3 gigawatts (GWs) of energy storage by 2020.  Consistent with state's energy storage bill, Assembly Bill 2514, which passed in 2010, the CPUC's proposal aims to reduce market barriers and incentivize development of viable, cost-effective energy storage methods.  The CPUC hopes that the rapid growth of energy storage in California will support the state's renewable energy industry as the state seeks to meet the legislature's mandate to have one third of California's energy generated from renewable sources by 2020.  Many renewable energy sources are intermittent, making energy storage technologies important for the integration of a large quantity of renewable energy into the existing electric system.

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