The California Public Utilities Commission (CPUC) has passed a directive whereby state utilities are required to buy 1.325 gigawatts of energy storage by 2020. This mandate is applicable to Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas & Electric.
The order was passed for three reasons – optimisation of the grid, integration of renewable energy, and reduction of greenhouse gas emissions. As per the decision, the utilities are required to submit proposals for their first energy storage investments by March 1, 2014.
This is the first ruling of its kind in the US and, according to Carla J. Peterman, lead Commissioner, it is an “important first step in encouraging the storage market and supporting grid reliability.”