POWER September 2023 - 40

COMMENTARY
Building Energy
Transmission Takes Time-
Batteries Can Fill the Gap
Eric Dresselhuys
C
alifornia's summertime energy challenges are welldocumented.
While energy shortfalls appear less likely
in 2023, thanks to the series of atmospheric rivers that
drenched the Golden State this winter, we shouldn't forget the
painful lessons learned from the summers of 2020-2022, or
pretend that this is anything other than a respite from a longterm
trend. Instead, we can take this opportunity to identify
the best path forward to reduce carbon emissions and improve
the reliability of our energy system.
Grid Infrastructure Upgrades Needed
The root cause of our energy challenges is our aging, inadequate
grid infrastructure. California's grid cannot store, transmit,
and deliver the state's considerable renewable energy
when and where it is needed. While the Strategic Reliability
Reserve, established last year, will provide a band aid, it could
end up a $5.2 billion investment in mostly fossil fuel infrastructure.
This may mitigate the supply crunch in the short term,
but it offers neither a long-term solution nor does it help meet
climate goals.
We need new grid infrastructure, particularly transmission
and storage capacity. Governor Newsom's proposal to accelerate
new infrastructure and clean energy projects is on the right
track. However, even with reform, new transmission capacity
can take more than a decade to build. As the climate rapidly
warms, we cannot afford to slow the transition to clean energy
while we wait for transmission projects, and no one wants to
return to rolling blackouts and " Flex Alerts. "
SATA Is an Option
We can make progress while we build out grid infrastructure.
New long-duration energy storage technologies can be deployed
quickly and strategically to enhance the existing grid
and better leverage renewable energy generation.
Storage-as-a-transmission asset, or SATA, can meet the
needs of the grid much more quickly than new transmission
capacity-in a matter of years, not decades. SATA would improve
the utilization of existing transmission lines and absorb
excess renewable generation when available, then disperse it
during high-demand periods.
SATA projects are also scalable and flexible with the ability
to adapt to evolving grid needs over time. California can add,
subtract, or simply move storage capacity, reducing project
risk and increasing system flexibility.
Time Is of the Essence
To make sure that we have this important tool at our disposal,
we need to move quickly. Studies have shown that California
will need up to 11 GW of energy storage by 2030 and 45-55
GW by 2045 in order to meet clean energy targets. California
40
currently has roughly 5 GW of installed utility-scale storage.
While this may sound like progress, not all storage is created
equal. Most of the batteries installed today can only provide
rated power output for four hours or less. These short-duration
systems can provide important grid services but are not ideally
suited to SATA applications.
Long-duration storage technologies, which can provide
rated power capacity for four to 12 hours, or longer, are
needed to bolster our transmission system and underpin
the transition to renewable energy. By storing large volumes
of power and discharging over extended periods, these systems
can absorb excess renewable energy when generated
and enable its transmission over off-peak periods, improving
the utilization of existing transmission infrastructure without
the need for new transmission lines.
Regulations and Market Structures Are Key
So how do we get there? To start, we need to get the rules
right to enable their deployment.
Today, most transmission and distribution assets are owned
and operated by regulated utilities. The California Public Utilities
Commission (CPUC) is currently reviewing transmission siting
regulations, including battery storage project permitting. This is
an important start. However, to incentivize the addition of SATA
and recognize the value that can be delivered to the grid, the
CPUC needs to ensure that regulated utilities can include storage
projects in their cost structures. This will put SATA on equal
footing with other transmission investments by enabling cost
recovery, improving the bankability of storage projects.
More broadly, we need to get market structures right.
Non-utility owners of energy storage projects, such as independent
power producers, and large commercial and
industrial energy users, need the ability to realize reliable
revenue for the value that they add to the grid. The California
Independent System Operator (CAISO) can establish a
revenue model to support a reliable return on storage projects
while supporting a more sustainable, reliable energy
system. The first step would be to enable storage resources
to fully participate in operating reserve and other ancillary
service markets.
With the right frameworks in place, energy storage can
quickly address many of the challenges now facing the grid
and reduce the future threat of rolling blackouts for everyone.
California has an opportunity to reassert our leadership
in the deployment of new technologies and achieve
our ambitious climate goals. We just need to get the rules
right so that new technologies can be deployed to address
the big, intertwined challenges of energy reliability and climate
change. ■
-Eric Dresselhuys is CEO of ESS Tech Inc., which provides
long-duration energy storage systems.
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POWER September 2023

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