The California Public Utilities Commission (CPUC) has approved the state's Preferred System Plan (PSP) under its Integrated Resource Planning (IRP) process through which California will bring in around 25.5 GW of new supply-side renewables, comprising 18.883 GW utility scale solar, and 15 GW of new storage and demand response resources, by 2032.
This, it said, would generate enough clean energy to power close to 11.5 million homes and translates into a 38 million metric ton (MMT) 2032 electric sector GHG planning target. It is more stringent than the previous target of 46 MMT GHG. If it is achieved, it would be equal to the state reaching 73% renewable energy target for its electricity mix by 2032.
According to the commission's preliminary analysis of the preferred system plan portfolio of the load serving entities (LSEs), there is sufficient space for all of these new resources on the existing transmission system, with only limited transmission upgrades needed by 2032.
"This finding will be validated at a more granular level by the California Independent System Operator (CAISO) in its 2022-2023 Transmission Planning Process (TPP)," stated CPUC. "Today's decision also orders utility procurement of two battery storage projects that were identified by the CAISO as alternatives to transmission upgrades in the previous TPP cycle."
A fact sheet of the CPUC decision is available on its website.
Earlier this month, CAISO's draft transmission outlook stated that California needs 120.8 GW power generation capacity by 2045 to achieve a carbon-free grid, including more than 53 GW of utility scale solar (see California ISO's 20-Year Transmission Outlook).
CPUC is yet to decide on its proposed NEM 3.0 net metering changes that were criticized by the solar industry at large which, which according to Wood Mackenzie, if approved in their present form would destruct residential solar demand in the state by over 2.4 GW DC (see California's NEM 3.0 Stopped In Tracks).