The Energy Storage Report 2024

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

California’s 2022-2023 budget includes US$380m to support long-duration energy storage projects

LinkedIn
Twitter
Reddit
Facebook
Email
Governor Gavin Newsom of California, pictured in 2019. Image: Flickr user Gage Skidmore.

US$380 million in support for long-duration energy storage projects in California has been included in the state’s budget for 2022-2023. 

Governor Gavin Newsom announced the budget on 9 January, applicable for the next fiscal year beginning in July. The financial support for long-duration storage projects is part of a US$2 billion Clean Energy Investment Plan, which also puts funding into green hydrogen (US$100 million) and a pumped hydro storage project at the state’s Oroville Dam hydroelectric facility (US$240 million). 

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

Newsom had originally proposed in May last year that support for long-duration be in the range of US$350 million, as reported by Energy-Storage.news at the time. 

State-level trade association California Energy Storage Alliance (CESA), together with consultancy Strategen, published a document in 2021 which assessed that more than 50GW of long-duration energy storage would be needed for California to achieve its policy goal of delivering 100% renewable electricity to all customers by 2045. 

Source: California Budget Summary 2022-2023.

Other areas to be funded by the plan include nearly a billion dollars for various building decarbonisation measures, US$45 million for offshore wind infrastructure, US$210 million for industrial decarbonisation and US$85 million for the adoption of energy technologies at food production sites. 

The state’s budget summary document said the long-duration projects throughout California will help support grid reliability, adding resilience against emergencies such as wildfires and providing a “decarbonised complement to intermittent renewables”. 

The latter will give the state — which has seen a rapid growth of lithium-ion battery energy storage with durations of up to four hours — additional options for energy storage when there is less renewable power available for use.

US$7 million is being put towards the state’s energy modelling activities, which could include creating models of the electricity system to figure out what sort of generation resources, and in what combination, can support the state’s push for a carbon neutral electricity system, while making the system as reliable as possible.

An additional US$6.1 billion is also being added to an existing US$3.9 billion commitment to support zero-emissions vehicles (ZEV), for a total US$10 billion of spending over six years.  

As our sister site PV Tech reported today, there has been no resolution for the fate of a highly disputed set of revisions to net metering programmes, which have for years incentivised and driven investment in small-scale solar PV systems for residential use. 

More to follow… 

Read Next

Premium
July 11, 2024
Utility Southern California Edison is considering withholding liquidated damages from Ameresco after continued delays to 537.5MW/2,150MWh BESS portfolio.
July 10, 2024
Powin will supply 880MWh of its BESS technology for a project developed by US utility DTE Energy in Michigan, US.
July 10, 2024
Queensland Hydro has launched a public consultation phase for its 2GW Borumba Pumped Hydro Project in Australia.
Premium
July 9, 2024
Developer and IPP NextEra Energy Resources (NEER) is proposing to construct an up to 3GW standalone BESS across 260 acres of privately-owned land in Fresno County, California. 
July 5, 2024
The US federal Department of Energy (DOE) will offer up to US$100 million for pilot-scale long-duration energy storage (LDES) projects utilising non-lithium technologies.

Most Popular

Email Newsletter