California IRP Proceedings on Climate Targets, Energy Mix

In February 2022, the California Public Utilities Commission (CPUC) adopted a 35 million metric ton (MMT) 2032 electric sector greenhouse gas planning target, which is more stringent than the previous 46 MMT target. The PUC said that equates to 73% Renewables Portfolio Standard (RPS) resources and 86% greenhouse gas-free resources by 2032. For comparison, in 2021, half the power generated in the California Independent System Operator’s grid came from natural gas. The rest was from solar (21%), wind (12%), nuclear (10%), hydro (7%) and other resources (1%), according to federal energy data. The decision adopts a preferred portfolio of resources that includes about 25,500 megawatts (MW) of new renewables and 15,000 MW of new storage and demand response resources by 2032.

That February 2022 Order is available below.

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In March 2020, California’s PUC set a new emissions target for its electric sector to guide integrated resource planning processes that would double the state’s clean energy capacity by 2030 and prohibit the development of new natural gas plants. The emissions target was set at 46 million metric tons by 2030, 56% below 1990 levels. California electricity providers will need to develop nearly 25 gigawatts of renewable energy and battery storage to achieve the goal, nearly double the amount the state has currently. The CPUC closed a loophole that would allowed development of new natural gas plants if paired with energy storage. However, expansion of existing natural gas plants is allowed if paired with energy storage, and new gas plants are allowed if they use biomethane.

In its Order, the PUC directed utilities to submit plans for meeting a backup goal of 38 MMT, in order to achieve even deeper emissions cuts. Once it receives those plans, the agency will decide whether it favors the deeper target.