Utility Decarbonization Gains Steam in California

Decarbonization is one of the hot utility buzzwords these days, and as usual California is at the forefront of the movement.  Simply put, it refers to the reduction of greenhouse gas (GHG) emissions released into the atmosphere, which is an important strategy to help mitigate the effects of climate change. 

How California is Moving Toward Decarbonization

In late March 2020, the California Public Utilities Commission (CPUC) approved efforts to increase renewable energy sources, add energy storage capacity, and deploy various electrification programs for new buildings. 

The decision leverages State Senate Bill 1477, which provides $200 million worth of “cap and trade” funds for such initiatives (a cap and trade program is a market mechanism that provides incentives for companies to invest in clean energy sources). 

Natural gas makes up 25% of California’s greenhouse gas emissions, and California’s four major gas utilities will support the funding for the pilot tests, with SoCalGas providing about 50% of the funding.  Among other initiatives, SoCalGas aims to have renewable natural gas (RNG) account for 20% of the supply mix by 2030, and it is pursuing advanced carbon capture and storage technologies as well. 

Overall, the state hopes to double the amount of clean energy it uses within 10 years by adding a whopping 25,000 MW of renewable-based power.  This includes nearly 9,000 MW of incremental battery storage capacity, which is 8x the current capacity across the entire U.S.  The net effect is that by 2030, the state will be able to slash GHG emissions by 56%.

From an emergency preparedness perspective, these are important objectives.  Climate change drives severe weather, so anything that can be done to help mitigate the negative effects of rising global temperatures should help reduce the frequency and duration of outages.  And if California is successful in its decarbonization efforts, other states will surely follow suit.  I, for one, will be following these efforts closely over the next few years.