Source: Lawrence Berkeley National Laboratory
Analysis by CEC Economics
Highlights
- The CAISO interconnection queue has ballooned in recent years, which means the pace in which projects are coming online is slower than the pace in which projects are added to the development pipeline. From 2007 to 2019, cumulative capacity in interconnection queue averaged 53 GW, about one-tenth of the 523.3 GW of interconnection queue observed in 2023. The cumulative capacity in queue in 2023 also represents a 163% jump from 2022’s 199 GW. Most of the increase comes from battery projects (standalone, hybrid, or paired with another technology such as solar).
- Prior to 2018, the projects in the interconnection queue were primarily standalone (single technology) projects. However, hybrid projects have become an increasingly larger share of the interconnection queue. In 2023, standalone projects made up 187.3 GW of the total cumulative capacity in queue, more than doubled the 70.1 GW from 2022. On the other hand, hybrid projects made up 336.0 GW in 2023, up 161% from 2022’s 128.8 GW. As California aggressively expands the deployment battery storage projects, battery storage projects (standalone and hybrid) make up a larger share of the queue.
Opportunity
- In July 2023, Governor Newsom signed an infrastructure streamlining package aimed at expediting the construction of clean energy projects by speeding up construction, expediting court review, and streamlining permitting.98 In October 2024, the Federal Energy Regulatory Commission (FERC) approved CAISO’s interconnection reform plan, which is intended to make the interconnection process more efficient and more closely tied to the state’s long-term integrated resource planning.99
98 Office of Governor Newsom. Governor Newsom Signs Infrastructure & Budget Legislation to Build More, Faster. Released July 10, 2023. Accessed Jan 31,2024. Available at: https://www.gov.ca.gov/2023/07/10/governor-newsom-signs-infrastructure-budget-legislation-to-build-more-faster/
99 Matthew Biss. FERC approves CAISO interconnection queue reforms despite protests from developers. Energy Storage News. October 29, 2024. Accessed November 4, 2024. Available at: https://www.energy-storage.news/ferc-approves-caiso-interconnection-queue-reforms-despite-protests-from-developers/