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California’s Energy Storage Mandate: The Race is On | Vishal Sapru, Frost & Sullivan

In September 2010 California passed a bill, AB 2514, that required the state Public Utilities Commission to adopt 2015 and 2020 energy storage procurement targets. Last month the CPUC responded by setting a goal for the state’s three largest utilities – Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas & Electric – to develop 1.325 GW of energy storage capacity by 2020.

According to the commission, this energy storage will help optimize the grid, through peak reduction, improved reliability and deferment of transmission and distribution upgrades, while enabling renewable energy integration and helping the state meet its goal of cutting greenhouse gases to 80 percent below 1990 levels by 2050.

We spoke to Vishal Sapru of Frost & Sullivan about the regulations and what they could mean for businesses across all sectors – and across the country.

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