The first solicitation for new energy storage capacity must occur no later than 1 December 2014 with some energy storage facilities to come into service in 2015.
The rule follows the CPUC’s implementation of AB 2514, which mandated that the body set specific energy storage targets for California utilities to integrate grid-scale storage into the state’s electrical power system.
California assemblywoman Nancy Skinner said that California passed AB 2514 so that the state would have the opportunity to harness excess electricity generation and use it when needed.
"The CPUC’s decision to ensure storage capacity will increase the reliability of our electrical grid and optimize solar, wind and other renewable resources," Skinner added.
"This decision makes our state the global leader in energy storage, spurring innovation and creating jobs across California."
Utilities will be allowed to employ energy storage for a variety of functions throughout the electric power system, including capacity, ancillary services and peak shaving, which will provide data for market expansion.
Energy storage systems can be employed as transmission-interconnected, distribution-interconnected, or behind-the-meter.
Utility ownership of storage projects is not permitted to exceed 50% across these three domains. Pumped storage increasing 50MW will be excluded from the target.
California Energy Storage Alliance executive director Janice Lin said that today’s momentous decision will optimize the state electric power system, lower costs for consumers, enhance reliability and decrease pollution.
