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
March 1, 2024
This Friday Briefing covers how advanced inverters can impact CO2 levels and why fire safety is a topic the industry can tackle together.
February 29, 2024
EDF Renewables North America has signed a PPA with California utility Southern California Public Power Authority (SCPPA) for part of the offtake of a solar-plus-storage project in neighbouring Nevada with a 780MWh BESS.
February 26, 2024
The largest battery storage facility in India is now online and was visited last week by the country’s Prime Minister, Narendra Modi.
February 22, 2024
Renewables developer and operator Arevon Energy has secured US$1.1 billion in debt and tax equity financing for a solar-plus-storage project in California which features a 150MW/600MWh BESS.
February 14, 2024
San Diego Gas & Electric (SDG&E), one of California’s main investor-owned utilities (IOUs), has brought online a portfolio of four ‘advanced’ microgrids equipped with 180MWh of battery storage.

Most Popular

Email Newsletter