Dive Brief:
California regulators are set to vote this Thursday on a request from Pacific Gas & Electric to amend four energy storage project contracts required to ensure grid reliability, including by increasing the price of the four contracts and reducing one project’s capacity by 50 MW.
There have been “unprecedented industry-wide market changes and inflationary pressure on project costs” since the storage contracts were executed in 2021, PG&E noted in its request, including high battery prices and supply chain constraints.
The projects are part of an 11.5 GW procurement package that the California Public Utilities Commission approved last year, in a bid to ensure grid reliability during the middle of the decade. That decision represented the agency’s largest capacity procurement ordered in one shot.
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