Energy Storage Victory in Southern California Edison Territory
Thursday, Oct 21 2021
WASHINGTON D.C. — Today the Federal Energy Regulatory Commission (FERC) issued a final order to approve Southern California Edison’s (SCE) Wholesale Distribution Access Tariff proposal. Following more than two years of negotiation, SEIA succeeded in reducing the wires charge for standalone energy storage from SCE’s original proposal, opening the door for significant storage growth in the territory.
The first-of-its-kind wires charge proposed by SCE would have drastically reduced the economic feasibility of all storage resources that are connected at the distribution level and participate in the CAISO market. The agreement that SEIA negotiated with SCE allows near-term resources to come online as planned.
Following is a statement from Gizelle Wray, director of regulatory affairs and counsel for the Solar Energy Industries Association:
“After a long, two-year negotiation with Southern California Edison (SCE), SEIA and its members were able to secure a 60% reduction in SCE’s proposed wires charge for standalone energy storage, clearing the way for more storage deployment and a cleaner, more reliable grid in California. Without this agreement, storage for utility-scale solar customers would not be feasible in one of the largest utility territories in the country.
“As written, the proposal would have set a dangerous precedent for unnecessary access fees and would have had a chilling effect on energy storage deployment across the country.
“California must stay on track to reach its clean energy goals if we’re going to address the climate crisis as a nation, and an additional roadblock for energy storage deployment was not an option. SEIA is committed to being the voice for independent power producers and fair market competition, and we’re glad to have delivered this important victory with the help of our members and allies.
“By securing this reduced charge, we’ve helped preserve the regulatory intent of FERC Orders 841 and 2222, which pave the way for distribution resources to have fair access to wholesale markets. Solar and storage add reliability and resilience to the grid, and SEIA will continue its work to ensure that utilities don’t attempt to add more unnecessary and onerous fees for market participants to use their wires.”
The Solar Energy Industries Association® (SEIA) is leading the transformation to a clean energy economy, creating the framework for solar to achieve 30% of U.S. electricity generation by 2030. SEIA works with its 1,000 member companies and other strategic partners to fight for policies that create jobs in every community and shape fair market rules that promote competition and the growth of reliable, low-cost solar power. Founded in 1974, SEIA is the national trade association for the solar and solar + storage industries, building a comprehensive vision for the Solar+ Decade through research, education and advocacy. Visit SEIA online at www.seia.org and follow @SEIA on Twitter, LinkedIn and Instagram.
Morgan Lyons, SEIA's Senior Communications Manager, [email protected] (202) 556-2872