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Energy Storage 101

The energy storage market is expected to continually grow signficantly.
Join CESA to grow with it. 

About Energy Storage

The power grid is a complex system in which electricity supply and demand must always be equal, and frequent adjustments to the electricity supply must be made to meet changing demand levels. In California, for example, demand changes occur daily between periods of high usage (evenings) and low usage (early mornings), as well as seasonally, such as when air conditioning usage spikes during hot summers. Energy storage can help address these fluctuations and create a more flexible and reliable grid system.

As California moves towards its SB 100 goal of achieving 100% GHG-free electricity by 2045, renewable energy sources such as wind and solar will play an increasingly important role in meeting the state’s energy needs. However, these sources are intermittent and not capable of continuously generating power, particularly during periods of calm winds or when the sun sets. Energy storage systems can address this challenge by allowing renewable power to be captured when it is produced and dispatched later when it is needed, thus providing a reliable source of electricity. As a result, the deployment of energy storage will be crucial to the success of California’s renewable energy transition.

Energy Storage Explained

These videos produced by CESA partners and Board Members help to clearly explain the role of energy storage in the future of the California grid and beyond. Enjoy!

CA Surpasses 10,000 MW in Energy Storage Capacity!

The California Energy Commission (CEC) storage tracker has been updated to reflect California's recent milestone, surpassing 10,000 MW in energy storage capacity. California leads globally in energy storage, with a focus on bolstering grid reliability and leveraging renewable resources.

From 2018 to 2024, battery storage capacity surged from 500 MW to over 10,300 MW, with an additional 3,800 MW projected by year-end and a forecasted need of 52,000 MW by 2045. This reflects California's commitment to cleaner energy. The dashboard provides comprehensive data on residential, commercial, and utility-scale installations, showcasing California's progress in each domain.

Energy Storage in CA by Type

Source: www.energy.ca.gov

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Why California?

California is the most populous state in the USA, is the fifth largest economy in the world and a true innovation engine. California is also the beachhead for energy policy for the North American market. 

As of September 10, 2018, California has an incredibly ambitious goal to meet- 100% zero emission electricity by 2045 for its 40 million residents.

Energy storage will play a critical role in achieving this, since as a broad asset class, energy storage is able to integrate intermittent renewable energy and optimize existing assets for a cleaner, more affordable and reliable grid.   

California investor owned utilities are already demonstrating their leadership toward achieving SB 100 goals with storage. Southern California Edison (SCE) 2018 Integrated Resource Plan (IRP) to the California Public Utilities Commission highlighted the significant role energy storage will play in achieving the state’s 2030 electric sector greenhouse gas (GHG) emission reduction goals. SCE models showed that in order to reduce its electric sector GHG emissions to 28 MMT by 2030, California load serving entities would need to procure an additional 9,604 MW of energy storage.  

California is the most important energy storage market out there. No other organization is on the ground in California with a single-minded commitment to promoting the interests of its energy storage members. 

Energy Storage Provides Invaluable Benefits!

GHG Emissions
Reduction

Energy storage reduces greenhouse gases (GHGs) by reducing the need for inefficient gas-fired peaker plants.

Renewable Energy Integration

Energy storage solves the intermittency challenges of renewable energy and reduces curtailment of solar energy during periods of high production.

Increased Grid Resiliency & Energy Diversity

Energy storage improves grid reliability by providing multiple essential functions including preventing blackouts and providing back-up power when blackouts do occur.

Cost Savings

End-customers can save money on their electric bills by using energy storage to avoid using energy when energy costs are the highest.

Customer Choice

California supports the customer’s right to choose how their energy is provided.

Grid Benefits

Energy storage solutions can behave like traditional power plants and ‘turn on’ to provide energy to the grid (during periods of peak usage and high ramping).

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Pathway Forward

CESA makes grid-connected energy storage a leading focus area for California and the U.S. west. CESA continues to work with California policymakers to expand their understanding of the critical role energy storage must play in the transition to a clean and reliable electric grid.

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