Sustainable LA Grand Challenge

The Challenge

Battery storage is a new and emerging renewable energy technology with various challenges that must be addressed before it can be deployed at a larger scale. California has begun supporting energy storage with AB 2514 (Legislation passed to create a cleaner electrical grid and increase the use of renewable energy through the use of energy storage technologies) in 2013 but concerns such as whether battery technology can store enough energy to power homes and the lengths of battery lifetimes remain. This project conducted legal research examining the barriers and challenges of widely deploying distributed energy resources, or “behind-the-meter” storage, for customers served by investor-owned utilities in California.  

Results

• The Federal Energy Remission Commission (FERC) has the power to regulate the wholesale and interstate transmission of electrical power. States have the exclusive jurisdiction to regulate retail rates, the development of transmission infrastructure and the in-state generation of power. Thus, the states and FERC clash over the regulation of distributed energy resources (DER).  
  • Under the current legal framework, all energy flowing from the electrical grid through the retail meter is considered retail service, while all energy flowing from behind the retail meter to the grid is considered wholesale power. 
  • For instance, any charges on the wholesale “charging” of the energy storage device, including even the retail service charges, are subject to FERC’s jurisdiction. 
• It is crucial to develop a regulatory framework to resolve issues surrounding service charges so that behind-the-meter storage technology can be used to its full potential in supporting California’s goal of completely decarbonizing the electrical grid. 

Deliverable and Impact

A legal and policy paper, “Growing Behind the Meter Energy Storage in California” and a final presentation was produced. The paper can inform stakeholders, researchers and other interested parties about how energy storage systems can play a pivotal role in achieving 100% renewable energy in Los Angeles by 2050.