Source: Sandia National Laboratories. Department of Energy, Office of Electricity Delivery and Energy Reliability (OE) – Energy Storage Program. Analysis by Beacon Economics.
  • California's legislators have been modernizing the state's energy storage infrastructure, reducing its heavy reliance on large hydro-electric projects. In 2021, more than 62.3 percent of the total rated capacity was considered non-hydro storage. Specifically, lithium-ion battery storage increased by 4.3 times the amount reported in 2020. In 2021, the California-ISO (CAISO) added about 1 GW of battery storage since the summer of 2020, after a push to add capacity to the grid following rotating outages in August 2020.154 Large-scale battery stations—mostly lithium-ion systems with up to four hours of energy storage capacity—are increasing by gigawatts on an annual basis. While these increases are impressive, storage resources must grow considerably to meet the 15 GW of energy storage target by 2032. In November 2021, the U.S. House of Representatives proposed a $2 trillion budget reconciliation bill that would extend tax incentives to stand-alone storage projects, if enacted. Furthermore, a $7 million battery storage facilities in Chula Vista, called EnerSmart, is coming online to bolster California’s electric grid in 2023, estimated to power nearly 3,000 homes once completed.155

154 SP Global .Battery storage capacity rapidly rising across California, thermal remains strong. Released Aug 26, 2021. Assessed Aug 22, 2023. Available at:

155 The San Diego Union-Tribune. New battery storage system in Chula Vista aims to reduce blackouts. Released Aug 1, 2023. Assessed Aug 22, 2023. Available