Gridlocked: How Local Planning and Energy Storage Can Help Surmount Grid Congestion and Enable a Clean and Just Energy Transition
About this Report
California's efforts to transition to clean energy sources and ensure grid reliability face unique challenges in densely populated and transmission-constrained urban areas like the Los Angeles (LA) Basin. The current state planning processes do not effectively address both local decarbonization and reliability planning. The LA Basin heavily relies on aging fossil-fueled power plants, with 60% of the operational peaking capacity over 40 years old. These plants are inefficient and contribute to environmental and health damages, especially in disadvantaged communities.
To achieve a clean and reliable energy supply in the LA Basin, local planning must prioritize the deployment of clean and flexible resources. This study, conducted by Strategen Consulting Inc. on behalf of the California Energy Storage Alliance, focuses on energy storage resources as a solution to replace fossil-fueled assets. The analysis highlights the need to retire and replace inefficient peakers and the importance of energy storage in meeting peak demand and achieving California's clean energy goals. Furthermore, increased transmission capacity and longer-duration storage resources will be crucial for retiring fossil assets and maintaining local reliability.
As California aims to achieve 100% clean electricity by 2045, the decarbonization of the LA Basin requires the deployment of energy storage and renewables both within the region and in the broader CAISO area. Out-of-Basin renewables will help charge in-Basin energy storage during off-peak hours, but this will also contribute to transmission congestion. Developing increased transmission capacity will reduce resource costs and accelerate the retirement of fossil assets. Additionally, longer-duration storage resources, such as 10-hour and 100-hour capabilities, will be necessary to ensure local reliability while phasing out fossil-fueled assets.
This report serves as a case study, providing valuable insights and recommendations for improving local reliability planning and transitioning to a clean energy system not only in the LA Basin but also in other constrained regions. By leveraging energy storage and renewable resources strategically, California can achieve its clean energy goals and create a more sustainable and reliable grid for the future.
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