The California Public Utilities Commission recently established a centralized procurement strategy aimed at boosting the state’s clean energy resources.
The decision, which implements California Assembly Bill 1373 “will bolster California’s efforts to achieve its ambitious greenhouse gas (GHG) reduction targets for 2045 and beyond,” it said.
Under this new framework, the California Department of Water Resources, through its Statewide Energy Office, will be asked to spearhead the procurement of certain long lead-time clean energy resources
Key Highlights
Authorized Capacity: The CPUC intends to request that DWR procure up to 10.6 gigawatts (GW) of nameplate capacity from emerging technologies, including:
- Up to 7.6 GW of offshore wind
- Up to 1 GW of geothermal
- Up to 1 GW of multi-day long-duration energy storage
- Up to 1 GW of long-duration energy storage with at least a 12-hour discharge period
Strategic Selection: These technologies were chosen for their potential to drive significant progress toward California’s GHG reduction goals. By scaling these resources, the state aims to lower their costs, enhance diversity of resources, and integrate them more effectively into the electric grid, the CPUC said.
Procurement Flexibility: The decision recommends that DWR conduct a series of solicitations and evaluate bids based on quality, cost, and risk, with review by the CPUC. This flexible approach allows for efficient cost management and mitigates risks for ratepayers.
Future Assessments: The CPUC will regularly review central procurement needs through its Integrated Resource Planning process, considering additional technologies as necessary.
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, it said.
Additional details on the proceeding are available on the CPUC’s website.
