California needs 40GW of battery storage to meet decarbonization goals

　　California investor-owned utility San Diego Gas & Electric (SDG&E)  has released a decarbonization roadmap study. The report claims that California  needs to quadruple the installed capacity of the various energy generation  facilities it deploys from 85GW in 2020 to 356GW in 2045.

　　The company released the study, "The Road to Net Zero: California's Roadmap  to Decarbonization," with recommendations designed to help achieve the state's  goal of becoming carbon neutral by 2045.

　　To achieve this, California will need to deploy lithium-ion battery energy  storage systems with a total installed capacity of 40GW, as well as 20GW of  green hydrogen generation facilities to dispatch electricity, the company added.  According to the latest monthly statistics released by the California  Independent System Operator (CAISO) in March, the state had about 2,728MW of  energy storage systems connected to the grid in March, but no green hydrogen  generation facilities.

　　In addition to electrification in sectors such as transportation and  buildings, power reliability is an important part of California's green  transition, the report said. The San Diego Gas & Electric (SDG&E) study  was the first to incorporate reliability standards for the utility industry.

　　The Boston Consulting Group, Black & Veatch, and UC San Diego professor  David G. Victor provided technical support for the research conducted by San  Diego Gas and Electric (SDG&E).

　　The report states that to achieve the goals, California needs to accelerate  the decarbonization process over the past decade by 4.5 times, and the installed  capacity of the deployment of various energy generation facilities needs to  quadruple, from 85GW in 2020 to 356GW in 2045, half of which is Solar power  generation facilities.

　　That number differs slightly from data recently released by the California  Independent System Operator (CAISO). The California Independent System Operator  (CAISO) said in its report that 37 GW of battery storage and 4 GW of  long-duration storage would need to be deployed by 2045 to meet its goals. Other  data released earlier indicated that the installed capacity of long-term energy  storage systems that need to be deployed will reach 55GW.

　　However, only 2.5GW of energy storage systems are located in the San Diego  Gas & Electric (SDG&E) service area, and the mid-2030 target is only  1.5GW. At the end of 2020, that figure was only 331MW, including utilities and  third parties.

　　According to a study by San Diego Gas & Electric (SDG&E), the  company (and the California Independent System Operator (CAISO) each have 10  percent of the installed renewable energy capacity that needs to be deployed by  2045) %above.

　　San Diego Gas & Electric (SDG&E) estimates that California's demand  for green hydrogen will reach 6.5 million tons by 2045, 80 percent of which will  be used to improve the reliability of the power supply.

　　The report also said that substantial investment in the region's power  infrastructure is needed to support higher power capacity. In its modeling,  California will import 34GW of renewable energy from other states, and the  interconnected grid in the western United States is critical to ensuring the  long-term reliability of California's power system.

　　SES Power believes that these reports do not have a very deep understanding  of the impact of current raw material fluctuations and the epidemic on clean  energy. We expect that the key components of photovoltaic power generation and  battery energy storage systems, such as photovoltaic panels, lithium batteries,  inverters, hardware, etc., will enter a long cycle of price increases. There are  many reasons. Developers will not do business at a loss unless the government  has very good policies to promote it. The simplest reality is that we use EVE,  CATL, BYD square aluminum-shell lithium iron phosphate batteries (single  100Ah-280Ah) products, special lithium iron phosphate batteries that can work at  -40 degrees Celsius, even if we have worked hard to control lithium The cost of  the battery, but the magnitude of the price increase still makes our end  customers hesitant. We have reason to believe that this will also happen to  system integrators or clean energy developers.