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California needs ‘massive buildout’ of battery storage and hydrogen to decarbonize, utility says

The roadmap calls for 40 GW of new battery storage and 20 GW of dispatchable green hydrogen to come online over the next two decades.
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Analysis developed by San Diego Gas & Electric found that a massive buildout of new battery storage and green hydrogen would be needed for the utility and California to decarbonize by 2045.

SDG&E said its "Path to Net Zero" roadmap is the first analysis of California's decarbonization pathways that includes a utility industry standard for reliability. The standard considers an electric system reliable if it experiences only one outage due to energy demand exceeding supply every 10 years.

SDG&E "Path to Net Zero" roadmap

In 2045, California is expected to need 356 GW of generating capacity, four times what existed in 2020, the utility said, to support the electrification of transportation and buildings. They expect statewide electricity consumption to increase by 96% over that time.

Battery storage and dispatchable green hydrogen will be critical compliments to variable wind and solar resources in California, according to SDG&E.

The roadmap calls for 40 GW of new battery storage and 20 GW of dispatchable green hydrogen to come online over the next two decades. As of January, California had installed 2,600 MW of energy storage and has no electric generation from green hydrogen.

SDG&E would need to add 2,500 MW of new battery storage and 4 GW of generating capacity to come from green hydrogen by 2045 to meet the roadmap's goals.

In March, the utility hosted a ribbon cutting for the 20 MW/80 MWh lithium-ion battery storage project in the Kearny Mesa area of San Diego. They now have a total energy storage capacity of 65 MW/260 MWh.

SDG&E said it hopes the study will help stakeholders "stimulate conversations and cross-sector collaboration."

The analysis was conducted with support from Boston Consulting Group, Black & Veatch, and UC San Diego Professor David G. Victor.


Several representative from San Diego Gas and Electric will be speaking at DISTRIBUTECH International, set for Dallas, May 23-25, 2022.

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