Operational Benefits of Meeting California's Energy Storage Targets: NREL (National Renewable Energy Laboratory)

In October 2013, the California Public Utilities Commission (CPUC) finalized procurement targets and other requirements to its jurisdictional utilities for a minimum of 1,325 MW of 'viable and cost-effective' energy storage systems by 2020. The goal of this study is to explore several aspects of grid operations in California and the Western Interconnection resulting from meeting the CPUC storage targets. We perform this analysis using a set of databases and grid simulation tools developed and implemented by the CPUC, the California Independent System Operator (CAISO), and the California Energy Commission (CEC) for the CPUC's Long-term Procurement Plan (LTPP). The 2014 version of this database contains information about generators, storage, transmission, and electrical demand, for California in the year 2024 for both 33 percent and 40 percent renewable energy portfolios. We examine the value of various services provided by energy storage in these scenarios. Sensitivities were performed relating to the services energy storage can provide, the capacity and duration of storage devices, export limitations, and negative price floor variations. Results show that a storage portfolio, as outlined by the CPUC, can reduce curtailment and system-wide production costs for 33 percent and 40 percent renewable scenarios.