- CPUC authorises DWR to procure 10.6 GW of clean energy resources.
- Focus includes 7.6 GW of offshore wind and 2 GW of long-duration energy storage.
- Solicitations to begin in 2026, with projects online by 2037.
- Centralised procurement aims to lower costs and accelerate technology scaling.
- Initiative supports California's 2045 greenhouse gas reduction goals.
The California Public Utilities Commission (CPUC) has launched a centralised procurement strategy aimed at accelerating the development of long-duration clean energy resources. This initiative, which follows the enactment of Assembly Bill 1373, is part of California’s broader effort to meet its greenhouse gas (GHG) reduction targets by 2045. Under this new framework, the California Department of Water Resources (DWR) will lead the procurement of key energy technologies, focusing on long lead-time resources that require economies of scale to become cost-effective.
The CPUC has authorised DWR to procure up to 10.6 gigawatts (GW) of clean energy capacity, including 7.6 GW of offshore wind, 1 GW of geothermal, and 2 GW of long-duration energy storage. This procurement will take place through a series of solicitations, with projects expected to come online between 2031 and 2037. The initiative aims to reduce the costs of emerging technologies by scaling them up and integrating them more effectively into the grid.
The CPUC emphasised that this centralised approach will not only streamline the acquisition process but could also lower costs for ratepayers. “With this new tool, California has the opportunity to jumpstart clean energy technologies and bring them to scale,” said CPUC President Alice Reynolds.
The long-duration energy storage (LDES) component of the strategy includes two categories: 1 GW of storage with discharge durations of at least 12 hours and 1 GW of multi-day storage. These resources will play a critical role in ensuring grid reliability as California transitions to a cleaner energy mix. Currently, load-serving entities in California have only committed to building 510 megawatts of LDES by 2035, far short of the state’s long-term goals.
Commissioner John Reynolds described the procurement effort as a challenge to the industry, calling on developers to deliver tangible benefits through economies of scale. The CPUC will regularly review procurement needs through its Integrated Resource Planning process and may consider additional clean energy technologies as necessary.
The centralised procurement strategy represents a significant step in California’s drive to become a leader in clean energy innovation. By 2037, the state could see up to 2 GW of additional grid storage and 8.6 GW of new energy production, strengthening its energy infrastructure and advancing its sustainability goals.