In the few short years since its founding, CESA has made grid storage a key focus area for California’s regulators and policymakers. Today, CESA continues to advance its mission and build on its substantial market-making progress.
Self-Generation Incentive Program – SGIP
CESA has successfully achieved unambiguous inclusion of energy storage in California’s SGIP, a key market transformation program for distributed energy resources. CESA’s success in reshaping the SGIP has made hundreds of millions of dollars of commercialization incentive co-funding available for distributed, behind-the-meter grid storage projects in California.
Successfully advocated that the CPUC amend eligibility criteria to allow energy storage to qualify for incentives when coupled with distributed wind or fuel cell generation.
Marshaled support for SB 412, which extended program funding and restored CPUC authority to determine eligible distributed energy resource technologies, including energy storage.
Actively engaged in SB 412 implementation at the CPUC; advocating for energy storage (both standalone and coupled with PV) to be fully eligible in the program. Successfully amended and helped to enact AB 1150, which extends SGIP program funding through 2014 ($249M new funding) and statutorily clarifies eligibility for standalone energy storage in the SGIP.
Successfully implemented new SGIP rules at the CPUC for energy storage. As of July 2012, the SGIP received more applications for energy storage than any other technology.
California Energy Storage Bill - AB 2514
In 2010, CESA worked closely with Attorney General Jerry Brown, the sponsor of AB 2514, from the bill’s inception to its successful enactment.
CESA has provided thought leadership through every step of the CPUC’s rulemaking, and continues to be deeply involved in its ongoing implementation. During 2012, with member input, CESA developed a framework for priority energy storage applications which has since been adopted by utilities and CPUC staff – this framework resulted in an energy storage procurement target of 1.325 GW by 2024.
In November 2015, the first successful projects were announced by Southern California Edison - 261 MW of storage for five bidding companies - all of whom are CESA members!
California Independent System Operator – CAISO
CESA actively engages in many stakeholder processes at the CAISO to promote the participation of energy storage resources in wholesale markets. In November 2011, the CAISO adopted a new Regulation Energy Management program, for which CESA strongly advocated. This program is specifically designed to facilitate the provision of regulation services from fast energy storage technologies.
During 2011 and 2012, CESA successfully advocated for adoption of pay-for-performance compensation for ancillary services, which will pay for the actual value delivered by energy resources that allow for more flexible grid management. Notably, as a direct result of CESA’s efforts, access to ancillary services markets will imminently be possible by behind- the-meter storage resources.
In 2014, CESA was very active and influential in the CAISO-led joint stakeholder initiative in developing the California Energy Storage Roadmap. This has resulted in a number of key intitiatives including Energy Storage and Distributed Energy Resources, Metering and Telemetry Options, and the Energy Storage Interconnection Initiative. And as of July 2015, with plenty of support from CESA members, CAISO has approved a new market participant known as the Distributed Energy Resource Provider (DERP), which is the first mechanism (nationally) in which aggregated distributed energy resources can participate in wholesale markets.
Federal Energy Regulatory Commission – FERC
CESA has filed critical comments at the FERC in several key inquiries and proceedings concerning energy storage technologies, including Integration of Variable Energy Resources, Frequency Regulation Compensation, and Third Party Provision of Ancillary Services; Accounting and Financial Reporting for New Energy Storage Technologies.
Our comments are informed by rapidly evolving policy developments in California and bring a market-leading perspective to the national energy storage dialogue. We also coordinate and collaborate closely with the Electricity Storage Association’s Advocacy Council under a Memorandum of Understanding.
Strategic Advocacy and Stakeholder Education
CESA provides analytical and technical support for policymakers in California, all of whom rely on CESA as a go-to source for real-world energy storage information and policy recommendations.
CESA regularly intervenes in CPUC proceedings to address energy policy areas critical to energy storage, including:
- The storage rulemaking (AB 2514 implementation)
- Smart grid implementation
- Utility long term procurement and resource adequacy procurement planning
- Feed-in tariff implementation
- Cost-benefit methodology
- Demand response
- Storage-friendly retail tariffs
- Permanent load shifting
CESA participates in the development of the California Energy Commission’s Integrated Energy Policy Reports, working through formal and informal channels at the CEC for inclusion of energy storage in California’s long-term energy policy and planning process.
CESA educates stakeholders about the importance of energy storage and its many applications in the electric power system at major conferences, both within California and around the world.
CESA also holds an annual, invitation only Market Development Forum which brings together CESA members and a cross section of key policymakers, regulators and stakeholders in the California's markets. Past speakers have included CPUC Commissioners Mike Florio and Carla Peterman, CEC Commissioner David Hochschild, and California Assemblymember Nancy Skinner.