Dive Brief:

• Three California energy agencies have developed a "comprehensive roadmap" aimed at assessing the current market environment and regulatory policies for connecting new energy storage technology to the state’s power grid.
• The report points out the need to focus on refining existing products and driving new ones to market, clarifying operational constraints to connecting energy storage to the grid, and reducing the costs of metering and connection.
• California established itself as an energy storage leader in 2013 when the state mandated investor-owned utilities reach a combined target of 1,325 MW by 2024.

Dive Insight:

The California Independent System Operator (CAISO), the California Public Utilities Commission and the California Energy Commission have jointly released a plan to assess and improve the market environment and regulatory policies impacting storage and the state's grid. 

“The roadmap is a foundation to integrate energy storage technologies that benefits grid reliability and consumers throughout the West,” said ISO CEO Steve Berberich. “This document details specific actions needed to optimize this maturing technology.” The report looks at expanding revenue opportunities, reducing costs of integrating and connecting to the grid and streamlining and spelling out policies and processes to increase certainty.

"Maximizing energy storage in the marketplace will take a network of policies, incentives, and processes to support innovation and manage risk over the next several years," the report found. "While many organizations are testing energy storage technologies and systems, a comprehensive plan is needed to incorporate storage projects into the state’s grid at scale."

Among high-priority actions, the CPUC will clarify and potentially modify net energy metering tariffs "applicable to cases where energy storage is paired with renewable generators," while the ISO clarify   wholesale rate treatment and ensure that the ISO tariff and applicable business practices manuals
and other documentation provide sufficient information.