SDG&E’s 2045 decarbonisation roadmap: California needs 40GW of BESS and 4x electricity capacity

LinkedIn
Twitter
Reddit
Facebook
Email

Californian investor-owned utility San Diego Gas & Electric (SDG&E) has released its decarbonisation roadmap study, which says the state will need to quadruple its electricity capacity from 85GW in 2020 to 356GW in 2045.

“The Path to Net Zero: A Decarbonization Roadmap for California” was released yesterday (5 April) and offers recommendations designed to help meet the state’s aim of carbon neutrality by 2045.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

To achieve this the state will need 40GW of battery energy storage deployment but also 20GW of dispatchable generation from green hydrogen, the utility added. Some 2,728MW of storage is grid-connected as per California ISO’s (CAISO’s) most recent monthly statistics for March, but there is no generation from green hydrogen.

The report, available on its website, says that alongside electrification of sectors like transportation and buildings, electric reliability is also important part of the green transition. The press release claims SDG&E’s report is the first to incorporate the utility industry standard for reliability, which means only one power outage every 10 years.

Boston Consulting Group, Black & Veatch and UC San Diego Professor David G. Victor provided technical support to SDG&E for conducting the study.

California needs to decarbonise 4.5x as fast as it has been doing over the past decade to achieve its goals, SDG&E said. Electric generation capacity needs to quadruple from the 2020 figure of 85GW to 356GW in 2045, half of which will be solar.

The figure differs slightly to California ISO’s own recent figures which said it needs 37GW of battery energy storage systems and 4GW of long-duration storage by 2045 to achieve its goals. Other, older figures have pegged the long duration capacity alone needed by then at 55GW.

However, only 2.5GW of that energy storage will be in SDG&E’s service area with an interim 2030 target of 1.5GW. By the end of 2020, the figure stood at 331MW, both utility-owned and third-party.

SDG&E and CAISO figures on the necessary storage deployment for 2045 both equate to storage providing over 10% of power capacity the state will need by then according to SDG&E (356GW).

SDG&E estimates that demand for green hydrogen in California will reach 6.5 million metric tonnes by 2045, 80% of which will be used to enhance the reliability of electricity supply.

The report also says that significant investments in the region’s electricity infrastructure will be needed to support the higher electricity capacity. In its modelling, California will be importing 34GW of renewable power from other states and that a larger interconnected western grid is critical to ensure the long-term reliability of California’s electricity system.

Read Next

April 17, 2025
Clean energy trade body American Clean Power Association (ACP) has released a report on energy storage market reforms for regional grid operators based on findings from the Brattle Group.
April 15, 2025
LS Electric will deploy a 20MW/90MWh battery storage system in Japan after it was awarded the contract through a competitive solicitation.
April 10, 2025
Berkshire Hathaway Energy-owned utility PacifiCorp has filed its 2025 integrated resource plan (IRP) with the six state utility commissions in its service area.
Premium
April 8, 2025
Community Choice Aggregator (CCA) San Diego Community Power (SDCP) has signed an offtake agreement for a battery storage project being developed by SB Energy in Riverside County, California.
April 7, 2025
Energy storage platform GoodPeak has closed construction debt financing to start construction on two 10MW battery energy storage system (BESS) projects in Texas, US.

Most Popular

Email Newsletter