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California’s energy storage policies have significantly influenced other states in the United States. Here are some ways in which California has set a benchmark for energy storage development:
Key Policy Initiatives and Their Impact
- Legislative Framework: California established a comprehensive legislative framework with Assembly Bill (AB) 2514 in 2010, which allowed the California Public Utilities Commission (CPUC) to set energy storage targets. This model has inspired other states to develop similar regulatory frameworks.
- Procurement Targets: By setting ambitious procurement targets, such as 1,325 MW by 2020, California demonstrated the effectiveness of requiring utilities to invest in energy storage. This approach has been studied and adopted in various forms by other states seeking to integrate more renewable energy into their grids.
- Incentives and Programs: California’s use of incentives like the Smart Grid Inventive Program, which has provided hundreds of millions of dollars in consumer rebates, has shown other states how to encourage the development of energy storage. These programs help reduce barriers to entry for new technologies and foster market growth.
- Multiple Use Applications (MUAs): By evaluating the value of energy storage through MUAs, California highlighted the versatility of storage in enhancing grid stability and reliability. This comprehensive approach encourages other states to consider the diverse benefits of energy storage when developing their own policies.
National Impact
- Market Development: California’s experience with energy storage market development has served as a model for other states. It has shown how to address complex policy and technology issues related to integrating storage into both retail and wholesale markets.
- Renewable Energy Integration: As a leader in renewable energy adoption, California’s emphasis on energy storage as a tool for managing intermittency has set a precedent for other states aiming to increase their renewable energy portfolios.
- Safety and Regulation: Recent developments in safety regulations, such as the CPUC’s new battery storage safety rules following incidents like the Moss Landing facility fire, underscore California’s role in setting standards for safe operation and emergency planning. These developments influence regulatory discussions and standards in other states.
In summary, California’s energy storage policies have provided a blueprint for other states by demonstrating effective strategies in legislation, procurement, incentives, and regulatory oversight. As other states pursue similar goals of increasing renewable energy and reducing greenhouse gas emissions, they often refer to California’s model as a benchmark for energy storage development and policy design.
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