The California Public Utilities Commission (CPUC) has introduced a centralized procurement strategy to boost clean energy, aiming to secure up to 10.6 GW of long-duration energy resources. The California Department of Water Resources (DWR) will handle procurement, targeting 7.6 GW of offshore wind, 1 GW of geothermal energy, 1 GW of multi-day long-duration energy storage, and 1 GW of long-duration energy storage with at least a 12-hour discharge period.
The CPUC chose these technologies for their potential to accelerate California’s 2045 greenhouse gas reduction goals, reduce costs, and diversify energy sources. These resources require scaling to lower costs, as they are not widely procured by individual energy providers. The CPUC may opt not to pursue these technologies if they prove too costly for ratepayers.
The CPUC highlighted the need for alternative funding sources beyond electricity bills to support these initiatives. The DWR, acting on behalf of ratepayers, will conduct solicitations, evaluating bids based on quality, cost, and risk, with oversight from the CPUC. The goal is to streamline the acquisition of advanced energy resources by having one state agency manage the procurement.
Between March and June, California achieved 100% renewable energy for 100 days using solar, wind, and hydroelectric technologies. The state has since approved laws to expedite the approval process for solar and offshore wind projects. Additionally, the US Department of Energy recently signed a $12.6 billion agreement to develop a hydrogen hub in California, further enhancing the state’s clean energy capabilities.