The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

California passes 5GW of grid-scale battery storage


California has passed 5GW of grid-scale battery storage energy storage (BESS) projects, grid operator CAISO has revealed.

The state has long been a leader for BESS deployments, with an ambitious renewable energy goal of 90% by 2030 and the Resource Adequacy framework enabling long-term remuneration of large-scale BESS projects providing certainty for investments.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

As of the start of this month, the state now has 5.6GW of grid-scale connected BESS online, CEO Elliot Mainzer said this week (11 July).

“With our state experiencing more frequent climate extremes such as record heat waves and droughts, it is essential to invest in innovative technologies like energy storage to make sure we can continue to reliably power the world’s 4th largest economy,” Mainzer said.

The year started off quietly for the state, however, with CAISO’s official figures showing virtually no large-scale projects coming online in the first quarter, with the capacity actually decreasing from December 2022 to January 2023, shown in the graph below. In its place, the ERCOT, Texas market, led the charge, accounting for 70% of nationwide deployments in the first three months of the year.

Activity in California has picked up in the second quarter, with commissioned projects covered by from global energy firm RWE and utility SDG&E.

Projects in California make the bulk of their revenues from Resource Adequacy agreements with utilities like SDG&E, the other investor-owned utilities PG&E and SCE, as well as various smaller electric co-operatives like community choice aggregators (CCAs), as well as trading energy.

The ancillary services market in California is relatively small compared to the quantity of grid-scale BESS, so these account for very small part of revenues for projects.

Solar PV-heavy markets like the southern US and south of Europe tend to be more of an energy, load shifting opportunity while wind-heavy markets like the Nordics, UK and Germany lean more towards the provision of ancillary services.

See all coverage of the California market here.

22 October 2024
New York, USA
Returning for its 11th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
18 March 2025
Austin, Texas
The Energy Storage Summit USA is the only place where you are guaranteed to meet all the most important investors, developers, IPPs, RTOs and ISOs, policymakers, utilities, energy buyers, service providers, consultancies and technology providers in one room, to ensure that your deals get done as efficiently as possible. Book your ticket today to join us in 2025!

Read Next

July 17, 2024 Premium speaks to one of the chief architects of the Capacity Investment Scheme (CIS), aimed at breaking down barriers to investment and deployment in Australia’s renewable energy and storage sectors.
July 16, 2024
Independent power producer (IPP) Atlas Renewable Energy discussed its large-scale BESS projects in Chile, where gigawatts of projects are expected to come online in the next few years.
July 16, 2024
Energy storage fund investment manager Gore Street has released its full-year results, reiterating how internationalisation helped it weather falling revenues in the UK – though not enough to maintain its dividend level.
July 12, 2024
Emerging energy storage markets across Asia face a similar learning curve today as their maturing counterparts have done in the past.
July 11, 2024
Utility Southern California Edison is considering withholding liquidated damages from Ameresco after continued delays to 537.5MW/2,150MWh BESS portfolio.

Most Popular

Email Newsletter