Energy Storage Procurement Report to the Governor, the
In evaluating the appropriate contract structures for the initial procurement of utility-scale energy storage resources, stakeholders provided insights on two primary mechanisms: indexed
The PU's Energy Storage Procurement Framework provides crucial motivation to the development of both demand and supply in this marketplace. Since the time of Assembly Bill 2514 and through 2021 California built a rich ecosystem for energy storage research and development, commercialization, and project deployment.
This work has been developed and published by Lumen Energy Strategy, LLC in Oakland, California under commission by the California Public Utilities Commission.
Recent contracts are predominantly for much larger transmission-connected energy storage projects. Earlier energy storage contracts were significantly more expensive across all grid domains, and they generally reflect the cost reductions seen in the global storage industry.
These contracts allocate the risks of project development, construction, and performance between the parties and include the price that will be paid by the utility for the resource or the energy storage services that are to be provided.
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