The Roadblock to Battery Storage in California

Aerial view of the Santa Ana Energy Storage facility in Orange County, CA, featuring large-scale battery storage units. The image includes the title "Battery Storage: Overcoming Challenges," highlighting efforts to expand energy storage infrastructure.

The California Independent System Operator (CAISO) is facing significant delays in processing Battery Energy Storage System (BESS) projects due to an influx of interconnection requests. In 2021, CAISO received 373 requests during its Cluster 14 window—over triple the annual average of 113. This surge has overwhelmed its capacity, resulting in project backlogs and lengthy interconnection timelines.

The major challenges that are causing the delays include grid congestion (with existing infrastructure struggling to accommodate new inputs) and the complex studies that are required to assess BESS impacts on grid stability. CAISO must conduct interaction studies on all product power-generating projects to assess their impact on the grid before they can be connected. Requests have inundated CAISO in the past few years, creating a huge backlog of projects waiting to be studied. Without advanced control systems in place, these delays may exacerbate grid instability.

The IPE initiative

To address these issues, CAISO launched the 2023 Interconnection Process Enhancements (IPE). These measures include prioritizing high-capacity zones, implementing stricter project readiness criteria, and adopting a cluster study approach to streamline evaluations.

As of November 2024, the following reforms have shown progress:

  • Zonal Prioritization: Focusing on areas with existing or planned transmission capacity to optimize resource allocation
  • Project Scoring System: Evaluating project readiness and viability, advancing only the most prepared projects
  • Cluster Study Process: Grouping interconnection requests for collective evaluation, reducing bottlenecks

Looking ahead

“While these initiatives are designed to clear backlogs, enhance grid reliability, and support California’s renewable energy goals, ongoing efforts will be needed to fully resolve interconnection challenges,” says David Zetterlund, General Manager, BEI Construction. “As one of California’s leading providers of construction services for renewable energy projects, we closely monitor the state’s progress toward a zero-carbon transition and are making every effort possible to address the challenges that are impeding this initiative.”

“BEI team will do whatever we can to help further the state’s long-term climate goals,” notes Gary Chelini, COO, BEI Construction. “We believe the state’s aggressive climate goals are achievable, and we are committed to making the transition as smooth as possible. Toward that end, we’ve become adept at navigating the various challenges we encounter to make every renewable project successful.”

Recent Developments

In response to incidents like the Moss Landing fire, California has implemented more stringent control measures on BESS projects. Assembly Bill 303 (AB 303), also known as the Battery Energy Safety & Accountability Act, aims to improve safety standards and restore local oversight for BESS facilities in California. This bill includes restrictive provisions that limit where BESS facilities can be developed and establish mandatory buffer zones between BESS projects and sensitive receptors.

Additionally, the California Energy Commission (CEC) has been actively involved in the permitting process for large-scale BESS projects, such as the 4.6GWh co-located BESS and solar project by Intersect Power. These measures are part of the state’s efforts to enhance grid reliability and support renewable energy goals.

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