Data Source: California Energy Commission; U.S. Department of Energy, Energy Information Administration
Analysis by Beacon Economics
Highlights
- In 2023, The percentage of total power mix (in-state generation plus imports) from renewable sources68 increased to 36.9%, a rise of 1.1% compared to 2022. For the entire U.S., renewables made up 15.3% of energy generation. California maintains a significant lead in electricity generation from renewables, with an average yearly growth rate of 1.7% from 2008 to 2023, compared to the U.S. rate of 0.8%.
- In August 2024, the CPUC established a centralized procurement strategy of long lead-time resources, as established by Assembly Bill 1373. The Department of Water Resources agreed to procure up to 10.6 gigawatts of nameplate capacity from offshore wind (7.6 GW), geothermal (1 GW), and long duration energy storage (2 GW).69
68 Renewable Portfolio Standard eligible sources include biomass, geothermal, solar, wind, and small hydroelectric facilities.
69 California Public Utilities Commissions. CPUC Advances Clean Energy with Centralized Procurement Strategy. Released Aug 26, 2024. Accessed Oct 28, 2024. Available at: https://www.cpuc.ca.gov/news-and-updates/all-news/cpuc-advances-clean-energy-with-centralized-procurement-strategy
Challenge
- Senate Bill 100 requires that 44% of electricity sold to retail end-users to be from RPS-eligible renewable sources, and California is on track to miss this interim SB100 goal.70 In 2023, the California Public Utilities Commission approved a new resource portfolio to meet a 30 million metric ton greenhouse gas reduction target. This portfolio will require the buildout of 86,000 megawatts of new resources by 2035, including 54,000 megawatts of new renewable resources over the same period.71 The proposed portfolio includes a substantial increase in renewable resources, batteries, long-duration storage, and demand response.
70 See Senate Bill 100 bill text: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB100
71 California Public Utilities Commissions. CPUC Augments Historic Clean Energy Procurement Goals To Ensure Electric Reliability. Released Feb 23, 2023. Accessed Aug 28, 2023. Available at: https://www.cpuc.ca.gov/news-and-updates/all-news/cpuc-augments-historic-clean-energy-procurement-goals-to-ensure-electric-reliability-2023