CA Public Utilities Commission proposes targets for energy storage on eve of ESNA 2013



The California Public Utilities Commission has issued a proposed decision for energy storage targets and policies to bring about rapid deployment of grid-scale energy storage in the state, a watershed moment that will jump start the market for energy storage solutions. "This is the moment we've all been waiting for," said Janice Lin, Managing Partner of Strategen Consulting and Chair of Energy Storage North America (ESNA) Conference and Expo 2013, taking place September 10 through 12, 2013 in San Jose, California. "Commissioner Peterman's historic proposed decision provides a critically-needed market signal to realize the many benefits energy storage can bring to California's ratepayers. We're certain that other states will follow California's example." The proposed decision's framework provides essential goals and a timeline for the implementation of AB 2514 that became California law in 2010. Under AB 2514, the CPUC was required to open a proceeding to consider developing energy storage procurement targets for California utilities to integrate grid-scale storage into the state's electrical power system if determined to be viable and cost-effective. The CPUC has now developed a proposed framework for implementing the law. Some of the highlights: The proposed framework outlines specific, year-by-year energy storage procurement targets for Southern California Edison, San Diego Gas & Electric, and Pacific Gas and Electric. By 2020, the three together are expected to have contracted for 1.325 gigawatts of energy storage for their operations. The proposed targets increase between 30% and 55% every two years, creating economic incentives for multiple players with various technologies to enter the market. Utilities will be allowed to employ energy storage for a variety of functions, such as capacity, ancillary services, and peak shaving, which in turn will provide real-world data for further market expansion. Utilities may own some energy storage systems, and will procure at least 50% from independent developers across all segments of the grid via existing procurement processes or "all-source" solicitations starting in 2014. The first solicitation for new energy storage capacity will be required to occur no later than December 1, 2014 CPUC Commissioner Carla Peterman, who authored the proposed decision ordering the procurement targets, will deliver the keynote talk at ENSA on September 11. She will also join a panel with Cliff Rechtschaffen, Senior Advisor to Governor Jerry Brown, Jim Avery, Executive Vice President of Power Supply at SDG&E, and Mark Rothleder, VP Market Quality and Renewable Integration at the CAISO to discuss the anticipated impact of the proposed new framework. Jointly organized by Messe Düsseldorf North America and Strategen Consulting, ESNA 2013 will be the first conference and exposition in the U.S. to focus exclusively on energy storage projects, applications, customers and the emergence of a new energy storage economy in North America. Other highlights of the conference include: ESNA Innovation Awards: 12 of the most innovative energy storage projects in North America will compete in three categories: utility scale, customer-sited and behind the meter, and mobility. The Award Ceremony will take place at Energy Storage North America in the San Jose Convention Center on Sept 11, 2013. Update on CPUC Decision Requiring 50MW of Energy Storage for Local Capacity Requirements: In February 2013the CPUC issued a long term procurement planning decision requiring Southern California Edison to procure at least 50MW of energy storage resources, as well as up to an additional total of 600MW from preferred resources including energy storage. CPUC Commissioner Michel Florio and SCE's Director of Technology Development, Mark Irwin will address the status of this historic procurement effort that is presently underway. Hot Markets for Energy Storage in North America. Jose Luis Valenzeula, former Advisor to the Governor of Puerto Rico, Mark Bruce, Chair of the Emerging Technology Working Group at ERCOT and Bill Acker, Executive Director of the New York Battery and Energy Storage Technology Consortium will provide an overview of opportunities in a number of key North American markets. Application-Focused Sessions featuring key lessons learned from industry leaders who have implemented utility-scale, distributed and mobility applications of grid storage globally. Speakers include leaders from Duke Energy, Sacramento Municipal Utility District, Intercontinental Hotels, NRG, Panasonic, the U.S. Air Force, BMW, Brightsource, Chevron, Invenergy, FIAMM and AES Energy Storage. ESNA 2013 is a companion conference to Energy Storage Europe, whose second annual conference, held earlier this year in Dusseldorf, Germany, attracted more than 530 participants and 45 exhibitors from 33 countries. ESNA is supported by the global energy storage industry, including the following key partners: the Electricity Storage Association (ESA), the California Energy Storage Alliance (CESA), the Texas Energy Storage Alliance (TESA), the German Energy Storage Association (BVES), the China Energy Storage Alliance (CNESA), and the Indian Energy Storage Alliance (IESA) as well as ACORE, CALSEIA, CALSTART, CALWEA, Clean Coalition, the U.S. Department of Energy, EPRI, Independent Energy Producers, and Joint Venture Silicon Valley, NAATBATT, NEMA, NHA, NY BEST, PANC, Sandia National Laboratories, SCPPA, SEIA, SEMI, SEPA, SF Environment, Solarpraxis AG, TREIA, and USGBC of Northern California. ESNA 2013