Challenge
- Electricity generation from RPS-eligible renewable sources and large hydroelectric made up 42.9 percent of the power mix in 2021, a slight decrease from the 45.3 percent in 2020 and 46.3 percent in 2019. As extreme heat and droughts continues to worsen, the drop in hydro power was offset by a number of other resources, including natural gas. A similar pattern was observed in 2012 to 2015, when California was in a previous drought.
Opportunity
- As noted in Governor Newsom’s July 2021 emergency proclamation, officials warned of potential shortfalls of up to 5,000 megawatts (MW) during extreme heat events in the summer of 2022.130 On August 31, 2022, Governor Newsom successfully backed legislation extending the life of the state’s last operating nuclear power plant (Diablo Canyon) by five years, including a state-backed “forgivable” loan for operator PG&E of up to $1.4 billion.131 However, in November 2022, the Biden administration announced it would provide PG&E with a $1.1 billion grant to help the company prevent the closure of Diablo Canyon.132 In addition, the state added about 7.5 times more battery storage in 2021 than the previous year to make the grid better at incorporating renewables. Still, batteries only make up a small portion of the current power mix in California. Pledged to achieve zero-carbon electricity by 2045, California must seek additional tools to advance its long-duration energy storage resources to ensure grid reliability. The state’s proposed 2022-2023 budget plan approved $380 million to support the advancement of non-lithium-ion, long-duration energy storage technologies and is to be administered by the California Energy Commission (CEC).133
130 Office of Governor Gavin Newsom. Governor Newsom Signs Emergency Proclamation to Expedite Clean Energy Projects and Relieve Demand on the Electrical Grid During Extreme Weather Events This Summer as Climate Crisis Threatens Western States. July 30, 2021. Retrieved from: https://www.gov.ca.gov/2021/07/30/governor-newsom-signs-emergency-proclamation-to-expedite-clean-energy-projects-and-relieve-demand-on-the-electrical-grid-during-extreme-weather-events-this-summer-as-climate-crisis-threatens-western-s/
131 National Public Radio, “California lawmakers extend the life of the state’s last nuclear power plant.”
September 1, 2022. Retrieved from: https://www.npr.org/2022/09/01/1119778975/california-lawmakers-extend-the-life-of-the-states-last-nuclear-power-plant
132 CNBC. Biden grants PG&E $1.1 billion to keep Diablo Canyon nuclear plant open. November 11, 2022. Retrieved from: https://www.cnbc.com/2022/11/21/biden-grants-pge-1-billion-to-keep-diablo-canyon-nuclear-plant-open.html
133 Legislative Analyst’s Office. The California Legislature’s Nonpartisan Fiscal and Policy Advisor, The 2022-23 Budget Clean Energy Package. February 22, 2022. Retrieved from:
https://lao.ca.gov/Publications/Report/4554
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