Source: Energy Information Administration; DOE Office of Electricity Global Energy Storage Database. Note: Includes operating, on standby or out of service (but not retired). Analysis by CEC Economics
Source: Energy Information Administration; DOE Office of Electricity Global Energy Storage Database. Note: Includes operating, on standby or out of service (but not retired). Analysis by CEC Economics
Highlights
  • California's legislators have been modernizing the state's energy storage infrastructure, reducing its heavy reliance on large hydro-electric projects. In 2010, the state was the first to mandate energy storage expansion, when it directed the California Public Utilities Commission (CPUC) to require private utilities to acquire increase energy storage by 2020.
  • Similar to small-scale solar PV, California is also leading the charge in energy storage capacity addition. In 2023, California added 3,011 MW of nameplate capacity energy storage while the rest of the U.S. added 3,835 MW—which means California accounted for 44% of energy storage addition nationwide. However, compared to 2022, energy storage capacity addition grew 23% in California and 117% in the rest of the U.S.
Challenge
  • Energy storage with a duration between two to four hours accounted for 73.2% of California's energy storage capacity addition in 2023. Although California is the leader in energy storage, the vast majority (98.7%) of the capacity addition was for storage with a duration of four hours or fewer, which is similar to the share in 2022 (98.6%). Since energy storage, along with transmission capacity buildout, are important tools in mitigating the increasing solar and wind curtailment, the state needs to increase its procurement of longer-term duration energy storage.