Latest news with #CAISO
Forbes
01-08-2025
- Business
- Forbes
Storage Now Vital Part Of Grid Architecture
It has become, in electric terms, the elephant in the room. That metaphor dates back to 1814, but serves well today when looking at the constrained future of the U.S. electricity supply: the emergence of storage as an essential part of the grid infrastructure. Storage, largely pump storage, has been around since the 19th century. Now with batteries, storage has become an essential player in supporting the grid during normal operations and in times of stress. Notably both the CEO of ERCOT, Pablo Vegas, and the CEO of CAISO, Elliot Mainzer, have said their systems got through the winter of 2022-2023 because of the amount of storage in both systems. Storage Is The New Essentiality The growing importance of storage, indeed its essentiality, is covered in a major article — more of a white paper, really -- authored by three energy attorneys at the world's largest law firm, Dentons: Clinton Vince, Jennifer Morrisey and Andrew Mina. It appears in the August issue of Financier Worldwide, a monthly publication for executives. The article traces the history of battery storage from its acceptance as a potential contributor to a low-carbon grid, playing a role in firming up intermittent resources, to its growing importance in grid stability. Historically, pump storage was the most cost-effective and reliable storage system with long drawdown times. But, as the Dentons attorneys point out in their article, it is difficult to build and new sites are limited. Ninety percent of new storage is from batteries, they say. You might say that utility scale battery storage has come of age. The article states: 'The essential role of storage and the variety of benefits it offers to the grid are quickly becoming more broadly appreciated.' The authors portray the grid as becoming more stressed, suffering from years of under investment, increasingly turbulent weather, and a rapidly increasing demand for power. 'Last year the U.S. electric grid saw additions of new generation capacity of more than 70 percent over the previous year, a trend that is expected to repeat this year. 'This is a significant increase, but it pales in comparison to the expected threefold increase in demand over the next few years, driven by artificial intelligence and data center growth, and the electrification of transportation and industrial operations,' they write. The workhorse in batteries is lithium ion which has done so much to support the changing face of the modern world, from cellphones to electric vehicles, drones to toys, personal computers to spacecraft. But for utilities, the future may have other strong players, including iron-air and flow batteries. Even old-fashioned and proven lead-acid devices may have a future in the utility space. While iron-air batteries, as offered by Form Energy based in Somerville, Massachusetts, have the advantage of drawdown times of several days, they are less adept at load following. John Howes, principal at Redland Energy Group and an aficionado of batteries of all kinds, points out that energy-hungry data centers aren't waiting. They are deploying batteries in their data centers now. Howes told me, 'Energy storage systems, which have been part of the nation's power infrastructure for more than 150 years, now must assume a role of greater importance to ensure that the physical infrastructure will perform seamlessly. 'Batteries already are deployed in every data center.' He added that batteries serve the nation's growing artificial intelligence capability. Howes said batteries not only back up other power generators in emergencies but can also achieve 'black starts' in a complete blackout situation. Their day-to-day work is to store low-cost energy for discharge in peak demand times. To accomplish these functions in a cost-effective manner, Howes said, batteries will have to use better performance materials and advanced designs, and be made with state-of-the-art processes. Complexity Of Valuing Battery Resource The Dentons article explains these challenges this way: 'Valuing a battery resource is a more complex exercise than for other resources. The cost of a battery resource is deeply intertwined with the engineering operations of the grid, and the arbitrage functions of battery storage complicates the determination of the market value of the resource. 'Moreover, battery storage provides a variety of values to the electric system. The cost will vary depending on which service is needed at any given time to optimize which market, and will affect how battery storage is bid into the market and at what level of charge. This sets battery storage apart from other distributed resources.' In 2024, according to the Energy Information Administration, utility-scale battery storage exceeded 26 gigawatts, with operators adding 10.4 GW of new battery storage capacity, making it the second-largest generating capacity addition after solar. The EIA expects a record-breaking increase in 2025, with 19.6 GW of utility-scale battery storage planned to be added to the grid. The elephant is stirring, maybe getting to its feet.
Yahoo
13-06-2025
- Business
- Yahoo
U.S. Battery Energy Storage Market Sees Significant Growth
The US battery energy storage (BESS) market is booming across the country this year, coming off an already impressive growth streak in 2024. The rapid clip of expansion is partially due to falling battery manufacturing costs, with Rystad Energy predicting this trend to continue over the next five to seven years amid ongoing design improvements. While renewable energy investment faces policy headwinds as legislators weigh rolling back tax incentives for low-carbon energies, the grid-scale BESS market remains unscathed, for now. Rystad Energy estimates that this growth will continue, predicting an increased installation rate of approximately 16 GW per year by early 2026. As energy demand rises in the US due to increased electrification, grid resilience will continue to be critical, with batteries playing a key role in meeting this need, along with both traditional and renewable energy sources. The US grid-scale BESS market delivered a very healthy growth of around 60% in 2024, rising from six gigawatts (GW) of capacity added in 2023 to 10 GW of installations. Planned inventory is a very strong leading indicator of actual capacity additions and we believe this rate of growth will create increased annual battery demand for grid-scale BESS Artem Abramov, Head of New Energies, Rystad Energy Learn more with Rystad Energy's Renewables & Power Solution. States that are witnessing the highest levels of BESS market growth are Texas and Arizona, with the California market stabilizing last year. Texas became the largest US BESS market in 2024 and currently exhibits an installation rate of around four GW per annum – similar to California. Contrary to California, the BESS inventory in Texas has increased from five GW to more than seven GW in the last 12 months, pointing to a likely further increase in installations this year. Notwithstanding the growth in Texas, it is the rest of the country that is currently experiencing a BESS boom. Led by Arizona, the BESS inventory across all emerging US markets grew from three GW in the second quarter of last year to seven GW currently. The actual installation rate currently stands at around three GW – perfectly in line with the inventory level 12 months ago. While some construction delays are expected, there is no doubt that these emerging markets will drive most of the growth in the second half of this year and first half of next year, and even beyond. In the most mature markets, batteries play an increasingly important role during peak power demand periods as they 'extend' solar generation curves into evening hours. In the last 90 days, batteries have satisfied 13% of the power demand of the California Independent System Operator (CAISO) during battery discharge hours. Although the trend is new, the days of batteries delivering more than 16% of electricity during discharge hours are becoming increasingly common. While the average contribution during all discharge hours stands at around 13%, the typical peak contribution during discharge hours is already close to 30%. The 90-day average peak hour contribution currently stands at 26%, adding 10 percentage points over the last 12 months. Looking at the share of CAISO power demand satisfied by renewables – mainly solar, wind and hydro – we observed that the annual average increased from less than 30% in 2021 to more than 40% in the last 12 months. While the peak of renewable contribution in springtime is growing each year – renewables met more than 65% of daily demand on some days this year, for instance – winter dips remain similar, with renewables delivering only 20% to 25% of demand. As a result, renewables integration has to date only been able to reduce CAISO's dependency on energy imports, which have declined from around 27% to about 16% of system demand in the last four years. As both BESS and solar PV installed capacity continue to grow in California, it is important to remember two things in particular: which power system challenges are being addressed by batteries, and what batteries cannot really help with. Whether it is theoretically possible to have all renewable plus BESS systems in CAISO and what kind of overbuild – and economic implications for project developers and end consumers – will be associated with it remains to be seen Artem Abramov, Head of New Energies, Rystad Energy By Rystad Energy More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
FERC ALJ order threatens competitive transmission cost caps: CAISO
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. An order by a Federal Energy Regulatory Commission administrative law judge threatens cost caps included in competitive transmission solicitations across the United States, according to the California Independent System Operator. A May 22 ruling by FERC ALJ Joel deJesus could also upend FERC's framework for providing refunds to electricity customers when the agency finds a company has been overcollecting revenue, CAISO said in a filing with the commission on Tuesday. The California grid operator urged FERC to overturn deJesus' findings, saying they 'will harm ratepayers, undercut the consumer protections afforded by the Federal Power Act …, and cast doubt on the CAISO's and customers' ability to rely on voluntary, binding cost caps proposed and agreed to by project sponsors in competitive transmission planning processes.' The issue centers on a dispute over a proposal by a Lotus Infrastructure Partners affiliate to recover more than double a cost cap for the 500-kV Ten West Link transmission project between California and Arizona. CAISO selected the DCR Transmission project in 2014 following a solicitation that grew out of its transmission planning process. The transmission line started operating a year ago. DCR in June 2023 asked FERC to approve a transmission tariff based on a $553.3 million estimated project cost compared to a $259 million binding cost cap. Three months later, FERC accepted DCR's proposal, subject to refund, but ordered hearings and settlement procedures, according to CAISO. The proceeding was moving under the Federal Power Act's section 205, according to CAISO. However, deJesus said FERC's initial order was 'ambiguous' as to what FPA section the case should advance under. He contends FERC should have determined that the DCR rate filing was an 'initial rate filing' to be handled under section 206 of the FPA and that FERC should have established a refund date under that part of the law. In his order, deJesus noted that in section 205 filings, the burden of proof for the justness of a rate falls on the applicant — while in section 206 cases, the burden is on the entity challenging a utility's rate. DeJesus plans to move forward with the case under the FPA's section 206, unless FERC acts on appeals to his decision by June 6. Parties appealing the ALJ's order include CAISO, FERC staff, the Electricity Transmission Competition Coalition and a group that includes the California Public Utilities Commission. Recommended Reading CAISO asks FERC to reject Starwood affilate's request to blow past transmission cost cap Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
PG&E and Smart Wires Enhance Grid Reliability, Capacity for Data Centers in San Jose
Deployment of advanced power flow control technology enables 100+ MW of additional capacity, ensures efficient power distribution for critical infrastructure SAN JOSE, Calif. and DURHAM, N.C., May 28, 2025 /PRNewswire/ -- Pacific Gas and Electric Company (PG&E) and Smart Wires today announced a new project to enhance grid reliability and meet energy commitments for data centers connecting in San Jose. By deploying its cutting-edge advanced power flow control (APFC) technology, Smart Wires will help PG&E mitigate thermal overloads, redirect power flow, and increase available capacity at its Los Esteros electric substation. The project will boost capacity by more than 100 megawatts (MW) at the substation, which is located adjacent to new data centers under development in the Alviso community of San Jose. The installation of Smart Wires' SmartValve APFC devices is expected for completion in late 2025 and will reinforce critical infrastructure to keep these data centers operating. "As the demand for data centers skyrockets, ensuring a reliable and efficient grid is more important than ever," said Joanna Lohkamp, CEO of Smart Wires. "Our work with PG&E demonstrates the significant impact of our SmartValve technology, dynamically redirecting power from overloaded to underutilized lines. This approach addresses current capacity constraints and optimizes existing infrastructure for the massive energy needs of data centers while also offering a scalable solution for future grid enhancements." The California Independent System Operator (CAISO) projects a load increase of up to 500 MW in the San Jose area due to data center growth. While a new transmission line is planned for 2032, a near-term solution was needed to ensure reliable power delivery starting in 2025. After evaluating multiple options—including reconductoring and energy storage, both of which proved too costly and slow—CAISO identified APFC as the most effective, reliable, and timely approach. SmartValve devices deliver fast, high-impact upgrades that mitigate thermal overloads by up to 34%, enabling an additional 100 MW of firm power delivery over the existing lines. "Working with Smart Wires allows PG&E to efficiently address projected capacity needs while maintaining high reliability for our customers," said Chad Dupuis, Principal Electrical Engineer, PG&E. "This collaboration highlights our commitment to deploying innovative technologies that enhance our grid's flexibility, security, and resilience." SmartValve provides a fast and cost-effective path to meet increasing electricity demand and allows utilities to dynamically manage capacity and load. This technology can be rapidly deployed, adjusted, or relocated to accommodate shifting energy needs and the integration of new power generation sources. Additionally, SmartValve's modular and relocatable design allows for future expansion or reconfiguration to accommodate evolving grid needs. Once the new transmission line comes online in 2032, SmartValve will continue to enhance its benefits by dynamically balancing power flows across the network. About PG&EPacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and Central California. For more information, visit and About Smart Wires Smart Wires is a leading grid enhancing technology and services provider. We help electric utilities unlock capacity and solve their critical grid issues, using our solutions to create a more flexible, reliable and affordable grid. This enables a faster, more cost-efficient path to meet growing electricity demand with clean energy generation, at the lowest cost to consumers. Headquartered in the Research Triangle of North Carolina, Smart Wires has a global workforce of passionate and visionary industry-leading experts across four continents, who work every day to transform grids globally. In collaboration with our customers and partners, we've unlocked nearly 4 gigawatts (GW) capacity—enough to power over 2.5 million homes—supporting the faster integration of clean energy and new demand, enhancing security of supply and delivering cost savings to consumers. To learn more, visit View original content to download multimedia: SOURCE Pacific Gas and Electric Company Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Upturn
27-05-2025
- Business
- Business Upturn
Clean Power Alliance Targets Breakthrough Technologies and Business Models with New Clean Energy Innovation Solicitation
Los Angeles, Calif., May 27, 2025 (GLOBE NEWSWIRE) — Clean Power Alliance (CPA), the nation's leading green power provider and California's largest community choice energy aggregator, is excited to announce the launch of its Clean Energy Innovation Solicitation: Emerging Technologies and New Business Models. This solicitation seeks to identify and support early-stage clean energy projects that leverage innovative technologies, business models, customer programs, or procurement concepts—particularly those that may not meet the criteria of CPA's traditional Requests for Offers (RFOs)—but offer strong potential to enhance CPA's clean energy portfolio or operations. The primary goal of this solicitation is to accelerate the development of clean energy technologies that can play a key role in California's transition to a sustainable energy future. By partnering with innovative businesses, CPA aims to bring forward solutions that can be scaled to meet the state's energy needs, reduce its carbon footprint, and create opportunities for emerging technologies and business models as they advance in their commercialization process. 'This solicitation is an open call to those who are reimagining how clean energy can be produced, delivered and experienced,' said Clean Power Alliance CEO Ted Bardacke. 'We're looking for bold ideas that can scale, adapt and bring tangible benefits to the communities we serve.' The Clean Energy Innovation Solicitation is open for submissions, starting on May 27, 2025. Emerging technologies proposals will undergo two review and shortlisting cycles over the next year, while new business models submissions will be reviewed on a rolling basis per the solicitation schedule. Interested parties are encouraged to submit innovative ideas that have the potential to drive clean energy solutions and contribute to CPA's goal of delivering reliable, affordable renewable energy to Southern California residents and businesses. 'We're proud to launch this innovation-driven initiative as part of our continued commitment to advancing California's clean energy future,' said Lindsay Descagnia, vice president of power supply at Clean Power Alliance. 'By supporting emerging technologies and novel business models, we're paving the way for next-generation solutions that can accelerate the transition to a more sustainable and resilient energy system.' Submissions will be organized into two tracks with the following product types and eligibility characteristics: Track 1: Emerging Technologies Track 1 invites proposals for emerging clean energy technologies that could be in the early stages of development. This includes innovations in renewable or carbon-free power technologies, energy storage capabilities, and other advanced solutions designed to meet the growing energy demands of California. The resource must be located (or intended to be located) within California Independent System Operator (CAISO) territory or able to deliver energy to the CAISO grid. Projects within this track must meet a minimum size requirement of 1 megawatt (MW) with a maximum size requirement of 200 MW and have a projected commercial readiness date of no later than 2035. For projects selected from Track 1, proposers may elect to receive a formal letter of support from CPA for the project or enter into an agreement with CPA that would, upon successful completion of defined development milestones, allow the project to be shortlisted for negotiations of a power purchase agreement. These award mechanisms are designed to facilitate project advancement and contribute to its ultimate success. Track 2: New Business Models Track 2 focuses on new business models, innovative contracting structures, customer programs and partnerships that can benefit CPA's communities and customers. Submissions for Track 2 must have a commercial readiness date by 2030 or sooner. This track is aimed at developing creative solutions for the clean energy landscape that go beyond traditional energy procurement, creating value for both the organization and its diverse customer base. Based on Track 2 submissions, CPA may open a competitive procurement process to consider contracting for promising concepts that enhance CPA's operations and benefit its customers. How to Participate Track 1 proposals have two staggered deadlines—July 28, 2025, and January 9, 2026. Projects not submitted by the first deadline may still be submitted by the second. Track 2 proposals will be accepted on a rolling basis up to January 9, 2025. Detailed submission guidelines, including terms and conditions, evaluation criteria and proposal requirements, are available on CPA's solicitation website. About Clean Power Alliance Clean Power Alliance is the locally operated, not-for-profit electricity provider serving 38 cities and the unincorporated areas of Los Angeles and Ventura counties. CPA is the fourth largest electricity provider in California and the number one green power provider in the United States. CPA provides clean renewable energy at competitive rates for approximately three million residents and businesses, along with innovative programs that promote resiliency, electrification, and customer bill savings. CPA has an investment-grade credit rating of A-minus from S&P Global Ratings. View CPA's most recent Impact Report here. Learn more about CPA at Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same.
