Source: California ISO Generator Interconnection. Analysis by Beacon Economics
Highlight
- From 2006 to 2022, the average wait time per project to be connected to the CAISO grid was three years. Geothermal has the longest average wait time of 10 years per project, followed by solar, water wind turbine, averaging a three- year wait time per project. Battery projects have the shortest wait time of only one year, while biofuel and natural gas average a two year wait time. Since 2016, the delay mostly occurred between natural gas and battery projects, except for 2018 where a series of projects was delayed. The delay was largely due to California ISO’s Board of Governors canceling or modifying several previously approved projects to avoid $2.6 billion in future costs.160 Delays have also occurred as a result of supply chain constraints following the COVID-19 pandemic.
160 Utility Dive. Efficiency, DERs saving $2.6B in avoided transmission costs, CAISO says. Released March 26, 2018. Assessed Aug 25,2023. Available at: https://www.utilitydive.com/news/efficiency-ders-saving-26b-in-avoided-transmission-costs-caiso-says/519935/
Challenge
- While California's energy grid has undoubtedly become cleaner, it's worth noting that natural gas power plants have continued to be integrated into the grid on a consistent basis since 2016. However, upon closer examination, it becomes apparent that there have been instances where the actual online date of these plants deviated from the initially proposed online date, particularly in the cases of natural gas and battery installations within the past five years. To achieve California's goal of a 100 percent renewable power grid by 2045, a crucial step is to cease the addition of natural gas infrastructure.
Opportunity
- Governor Newsom signed an infrastructure streamlining package161 aimed at expediting the construction of clean energy projects. The Governor Newsom has outlined a Clean Energy Transition Plan that aim to build 148,000 MW of new clean power by 2045, with 35,000 MW already built in 2023. California has experienced a substantial increase in battery storage capacity on its electric grid since 2020. The capacity has grown from 500 MW in 2020 to 5,600 MW by July 12, 2023. This represents a remarkable 1020 percent increase in just three years. With each megawatt of electricity capable of satisfying the energy needs of approximately 750 homes, the 5,600 MW of battery capacity in California can sustain the power requirements of 4.2 million homes for up to four hours before necessitating recharging.
161 Office of Governor Newsom. Governor Newsom Signs Infrastructure & Budget Legislation to Build More, Faster. Released July 10, 2023. Assessed Jan 31,2024. Available at: https://www.gov.ca.gov/2023/07/10/governor-newsom-signs-infrastructure-budget-legislation-to-build-more-faster/