Our Work - CESA Policy Goals

1. Focus on Using Energy Storage as Key Enabling Technology Class to Optimize the Electric Power System
1. Support the successful implementation of AB2514.
2. Work with other energy-related stakeholder agencies to add energy storage to the state’s energy resource loading order at the same level as demand response.
3. Support the recommendations in the CPUC’s Energy Storage Policy White Paper , including opening a comprehensive rulemaking proceeding dedicated entirely to energy storage at the CPUC.
4. Support development of a cost-benefit methodology for utility deployment of energy storage that includes the full range of energy storage costs and benefits, including air quality benefits, and accommodates all types of energy storage (e.g. chemical, thermal, mechanical, gravitational). Costs and benefits of energy storage should also be factored into distributed generation, demand response and energy efficiency cost-benefit methodologies.
5. Make energy storage a key focus area of all future Integrated Energy Policy Reports and Updates, and other CEC public documents and activities.
6. Modify the CEC’s siting regulations so all applications for certification of new power plants, transmission lines, and transmission corridors must include discussion of energy storage technologies as alternatives to meet basic objectives of the project.
7. Support establishment of an “Energy Storage Research Collaborative” to provide a repository for objective information on energy storage, working with industry, national laboratories, and other stakeholders.
8. Accelerate deployment of Energy Storage Research, Development and Demonstration (RD&D) projects under various business models using Public Interest Energy Research funds. Near term focus should include emphasis on integrating multiple benefits of energy storage and various forms of distributed and renewable generation.

2. Implement Incentives to Encourage Deployments of Energy Storage Under Various Ownership Models (Utility-owned, Customer-owned and Third-party owned systems)
1. Support incentives to encourage utility procurement of energy storage capacity and services that would allow any business/ownership model, and provide utilities with an enhanced rate of return for utility-owned storage assets and ‘incentive bonuses’ for third party-procured advanced new energy storage services.
2. Recognize energy storage’s key role integrating renewables by giving storage value in the RPS/RES, such as through bonus credits for renewables coupled with qualifying energy storage.

3. Foster Market Innovation and Development: Implement Energy Storage Technologies in a Large Portfolio of Applications with Compensation Mechanisms That Encourage Investment in New Energy Storage Capacity
1. Develop application-specific installed capacity goals for energy storage to optimize California’s electric system and improve air quality, including for example:
   • Peak Load Reduction
   • Transmission and distribution deferral
   • Frequency Regulation and other ancillary services
2. Develop long-term contracting mechanisms for energy storage services. As mentioned above, consider utility incentives for procuring such services from third parties.
3. Require “Standard Offer” contracts for distributed energy storage by utilities (perhaps as part of permanent load shifting).
4. Develop a methodology to determine Resources Adequacy value for energy storage, enabling load-serving entities to meet CPUC requirements with energy storage.
5. Establish standard interconnection agreements for energy storage; including stand-alone uses of energy storage and energy storage coupled with distributed generation.
6. Adopt a peak reduction standard for state agency power purchases.
7. Create a long term discounted financing mechanism for energy storage – such as ensuring that energy storage is eligible for PACE financing.

4. Implement Transparent Pricing that Reflects the True Cost of Power on A Time Differentiated Basis and the True Value of Energy Storage Based on Performance
1. Adopt a CAISO energy storage tariff for regulation allowing energy storage to bid in regulation markets on a comparable basis that pays for actual performance.
2. Develop a CAISO performance-based tariff for energy storage.
3. Create a new asset class for storage, authorize storage for both transmission and generation rate recovery treatment.
4. Implement transmission, distribution and retail level rate design that more accurately reflects the cost of power (including transmission and distribution charges) on a time-differentiated basis.
5. Establish time-based feed-in-tariff cap and price for renewables coupled with energy storage.

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