
A microgrid in Borrego Springs, Calif., features battery storage, an ultracapacitor, diesel generators and controls, |
Citing the need to provide alternative sources of electricity to California's most vulnerable populations as they face the specter of outages caused by wildfires and related precautionary blackouts, the California Public Utilities Commission on Sept. 12 approved $100 million in "equity resiliency" funds for energy storage systems in areas with the highest fire risk.
The funds are available through the state's existing utility ratepayer-funded Self-Generation Incentive Program, California's primary behind-the-meter battery initiative, to customers who live in areas exposed to "extreme" or "elevated" wildfire threats and who are classified as low income or disadvantaged. Critical facilities that service those communities, such as fire stations, hospitals and schools, also qualify.
"This important expansion of the Self-Generation Incentive Program will benefit thousands of vulnerable customers and local emergency response providers over the next few years," Commissioner Clifford Rechtschaffen said in a news release. "They are the most at-risk when power is shut off from the grid."
During the proceeding to expand the program, a broad set of stakeholders agreed that energy storage can provide resiliency benefits ranging from "limited time-span backup power to a fully independent microgrid," according to the Commission's decision. The extent of benefits depends on numerous factors, including the size of the battery versus the on-site load and whether storage is paired with on-site generation. In order to qualify for the incentives, systems must be capable of operating independent of the primary grid.
Customers in Pacific Gas and Electric Co. service territory are eligible to receive 44% of the $100 million budget, while customers served by Southern California Edison Co. can apply for 34% of the total funds, with the remaining split between customers of San Diego Gas & Electric Co. and Southern California Gas Co.
In addition, regulators approved an order starting a rulemaking process to create policies to spur the commercialization of microgrids, in response to a 2018 law.
"These actions include developing standards, protocols, guidelines, methods, rates, and tariffs that serve to support and reduce barriers to microgrid deployment while prioritizing system, public, and worker safety, and avoiding shifting costs between ratepayers," the order said.
