California PUC directs utilities to procure an additional 4,000 MW of capacity

The California Public Utilities Commission (CPUC) ordered utilities in the state to procure an additional 4,000 MW of capacity in addition to the 11,500 MW ordered in June 2021.

CPUC officials said the additional 4,000 MW procurement is in response to updated load forecasting from the California Energy Commission that suggests that electricity demand is increasing and will continue to increase compared to when the CPUC adopted its 2021 decision. Further, the additional procurement order considers the updated anticipated retirements of some additional fossil-fueled generation resources.

In addition, CPUC approved four energy storage contracts totaling 372 MW for Southern California Edison (SCE) to meet a portion of its prior mid-term reliability procurement requirement.

“Today’s decisions ordering 4 GW of new clean energy capacity and more than 350 MW of energy storage contracts represent another major step forward in supporting reliability and the clean energy transition. As a result, California will be in a much better position to handle extreme weather events,” CPUC Commissioner Karen Douglas said.

Further, the CPUC also recommended an electric resource portfolio for use in the California Independent System Operator’s (CAISO) 2023-24 Transmission Planning Process. This will allow the CAISO to identify and authorize transmission development needed to accommodate a 30 million metric ton greenhouse gas target. The recommended portfolio includes more than 85 gigawatts (GW) of new resources by 2035, which consists of 54,000 MW of renewable resources, including 2,000 MW of geothermal and 4,700 MW of offshore wind. It also entails more than 28,000 MW of batteries, 2,000 MW of long-duration storage, and 1,100 MW of demand response.

“The CPUC plays a key role in assuring that the CAISO has what it needs for this coming year’s transmission planning process,” Commissioner Genevieve Shiroma said. “I am confident that the multidisciplinary CPUC team has carefully studied the clean energy procurement needs exemplified in the Decision we approved today. It will be key to closely monitor the load serving entities’ implementation and compliance with the Decision towards getting California to a steady state on energy.”