Energy Storage:
2014 Biennial Procurement Plans 

 

Background

In October 2013, the CPUC issued a Decision adopting an Energy Storage Procurement Framework and Design Program, which ordered the electric utilities to procure a total of 1325 megawatts (MWs) of Energy Storage by 2020. The utilities were directed to procure Energy Storage through biennial planning process starting in 2014.  

In February 2014, the utilities filed Applications requesting CPUC approval of their Energy Storage Procurement Plans for 2014 through 2016: 

  • Edison:        80.5 MW 
  • PG&E:         83.0 MW 
  • SDG&E:       16.3 MW 

On October 16, 2014, the CPUC issued its Final Decision authorizing the utilities to procure Energy Storage resources for the 2014-2016 Biennial Procurement Period.  

  • Edison:         >16.3 MW (because Edison had approximately 64 MW of existing or expected 
                            energy storage resources, the CPUC adjusted their minimum procurement target)      
     
  • PG&E:             80.5 MW  
  • SDG&E:          16.0  MW 

Costs of the Energy Storage procurement will be dependent on the pricing of bids offered to the utilities in their Energy Storage solicitations.  

The CPUC also further defined Energy Storage and eligibility to meet the CPUC’s targets:  

    • One-way vehicle to grid (V1G):  Electric vehicles that only receive electricity from the grid - does not qualify as Energy Storage.   
    • Two-way vehicle to grid (V2G):  Electric vehicles that dispatch electricity to and receives electricity from the grid -  qualifies as Energy Storage.  
    • Biogas:  Natural gas generated from animals or vegetation -  does not qualify for Energy Storage, except for the devices that can store biogas for later use.  

In order to meet their biennial Procurement Plan targets, the utilities are currently in the process of issuing Request for Offers (RFOs) for Energy Storage project bids from developers. These bids will be  evaluated in a competitive solicitation process. Developers that offer Energy Storage projects that are placed on a shortlist may be offered contracts. The utilities are expected to file individual applications by December 2014 with specific proposed Energy Storage contracts for final CPUC approval.  
 
 

ORA Position  

ORA supports the CPUC’s October 2014 decision authorizing the utilities’ Energy Storage procurement plans as a key strategy to achieving the state’s climate change goals. The CPUC adopted ORA’s recommendations which protects ratepayers’ investment through transparency and accountability,  including: 

  • Requires the utilities to file applications requesting CPUC approval of third party procurement contracts, which provides transparency and review by ORA and other stakeholders.  
  • Limits counting of biogas solely to Energy Storage components in order to value the reliability and safety services that they provide to the grid. 
  • Standardizes pre-bidding interconnection requirements. 
  • Prevents One-way Vehicle-Grid (V1G) and biogas as being defined as Energy Storage resources, since they do not provide reliability and safety services. 
  • Allows Vehicle-to-Grid (V2G) to be counted as Energy Storage resources for meeting the mandated procurement targets, which is beneficial because V2G systems, unlike V1G systems, can provide grid-related services.   

See ORA's October 2, 2014 Comments on the CPUC's Proposed Decision. 

See ORA's October 7, 2014 Reply Comments on the CPUC's Proposed Decision 

See ORA's June 19, 2014 Reply to CPUC Questions. 

 

Proceeding Status

See the Proceeding docket for Edison's Energy Storage Application. 

See the Proceeding docket for PG&E's Energy Storage Application. 

See the Proceeding docket for SDG&E's Energy Storage Application. 

 

Other Resources

ORA's Energy Storage Procurement Framework and Design Program Webpage. 

CPUC Energy Storage Webpage   

CAISO Energy Storage Roadmap   

California Energy Storage Alliance