The road ahead for California energy storage

More batteries, better safety measures, and policy shifts are defining the next phase of energy storage in the world’s fifth-largest economy.

From ESS News

California built out nearly 13 GW of energy storage in the last five years. This record-breaking deployment established the state as a global leader in grid-scale battery installations.

Continuing that rapid expansion will be critical if the state is to meet its 2045 goal of 100% clean electricity that can provide firm power and reliability during peak demand periods.

Currently, the state’s main concerns around reliability stem from just 30 to 60 hours per year.

“Battery storage has helped shoulder out the late afternoon and evening grid reliability issues,” said David Hochschild, the chair of the California Energy Commission, at an executive luncheon at the recently held Intersolar and Energy Storage North America conference. He explained that four-hour capacity lithium-ion batteries have already been critical in addressing these reliability gaps and preventing outages during heat waves.

“Together we have deployed 27 GW of new capacity since Governor Newsom took office six years ago,” he added.

Hochschild acknowledged that public concerns around battery safety are growing as energy storage deployment increases, particularly in the wake of high-profile incidents like that at Moss Landing earlier this year. Local moratoriums on storage projects are rising; Hochschild recognized new systems, particularly those with indoor or high density configurations, faced an uphill battle.

“We had this issue with solar early on, where we had rooftop fires and leaking thermal solar systems, but those issues were resolved,” he said. “Luckily, there have been no injuries or fatalities at any of the incidents, and no CEC-approved commissions have had thermal runaway.”

Hochschild also noted some concerns over battery safety are being amplified by outside interests.

“There’s a campaign to elevate the issue and make it especially big,” he said, citing a previous incident at Moss Landing. He explained that within hours of the event, an op-ed was published that “felt like it had been written before the event happened.”

It’s also not uncommon for gas pipelines or other fossil fuel infrastructure to blow up or experience harmful events. There are risks with the energy system as a whole, Hochschild said.

“One advantage of clean energy is that you reduce the risk over time,” he added, “But safety still has to be prioritized.”

The future of Californian energy storage will also be shaped by the regulatory landscape. The California Public Utilities Commission and CEC must align policies to support permitting reform, grid integration and economic incentives that encourage energy storage deployment, Hochschild said.

“Permitting is an area where we’re trying to do a lot better,” Hochschild admitted, explaining that the state just rolled out a new fast-track permitting program, which already has a 21GW project pipeline.

Hochschild emphasized the importance of making sure every project that comes online is “a good citizen of the grid” and highlighted the value of technologies like vehicle-to-grid capabilities in advancing the state’s energy transition.

Despite challenges, Hochschild is optimistic about California’s future as a clean energy leader.

“This is our window to build something beautiful and powerful,” he said.