Sources of California in-state electricity generation: 2018[1] This accounted for 68% of CA's demand in 2018; the remaining 32% was imported.[1]
Natural gas (47%)
Renewables - Solar (14%)
Renewables - Wind (7%)
Renewables - Other (Geothermal, biomass, etc.) (11%)
Large hydro (11%)
Nuclear (9%)
Energy is a major area of the economy of California. California is the state with the largest population and the largest economy in the United States. It is second in energy consumption[2] after Texas.[3] As of 2018[update], per capita consumption was the fourth-lowest in the United States partially because of the mild climate and energy efficiency programs.[4]
Energy consumption in California is dominated by transportation, due to the high number of motor vehicles and long commutes. California also is responsible for about 20% of total jet fuel consumption in the United States. The second largest energy sector is industry. Energy consumption of the state's residential sector per capita is lower than that of any other state except Hawaii thanks to a relatively mild climate.[5]
California has large energy resources, being among the top producers of oil, hydroelectricity, solar, biomass, and geothermal energy in the United States.
Electricity
Natural gas-fired power plants typically account for almost one-half of in-state electricity generation. California is one of the largest hydroelectric power producers in the United States, and with adequate rainfall, hydroelectric power typically accounts for close to one-fifth of State electricity generation. Due to strict emission laws, only one coal-fired power plant remains operating in California, the 63-megawatt Argus Cogeneration Plant in Trona (San Bernardino County).[6]
California's peak electricity demand of 52,061 megawatts occurred on September 6, 2022, during one of the longest and hottest September heatwaves on record, which encompassed multiple Western states.[7][8] Widespread rolling blackouts were narrowly avoided due to conservation efforts, though several thousand customers in Palo Alto and Alameda had their power cut when the California Independent System Operator told those cities' municipal power companies to shed load.[7][8] The CEO of CAISO stated that the 3,300 megawatts of grid storage batteries added since the August 2020 rolling blackouts were definitely helpful during this event.[7] The previous peak was on July 24, 2006, at 2:44 pm, with 50,270 MW. After the 2006 record, measures to reduce peak load resulted in decreased peak demand, even as the state's population continued to grow.[9] On September 1, 2017, the peak load was 50,116 MW.[10]
Although California's population increased by 13% during the 1990s, the state did not build any new major power plants during that time, although existing in-state power plants were expanded and power output was increased nearly 30% from 1990 to 2001. However, between 2000 and 2015, California built nearly 500 new power plants to supplement the 700 operating in 2000, boosting power supplies by 43%.[11]
In 2016, California Public Utilities Commission (CPUC) announced new rules for connecting coming generation sources to grid. Connection costs must be estimated by the utility, and the developer is limited to paying within ±25% change of the estimate. CPUC expects the rules to lower overall costs for ratepayers.[12][13][14] California requires 1.3 GW of utility storage[15] and studies long duration bulk energy storage. The state allocated US$83 million per year during 2017-2019 for behind-the-meter storage.[16] The plan was amended in 2020 to a combined $613 million by 2024.[17]
California's electricity rates are among the highest in the United States as a result of the changing energy mix within the state, including aggressive construction of new natural gas power plants.[11] As of 2021[update] California's electricity costs were 19.7 cents per kWh.[18] Due to high electricity demand, and lack of local power plants, California imports more electricity than any other state,[19] (32% of its consumption in 2018[1]) primarily wind and hydroelectric power from states in the Pacific Northwest (via Path 15 and Path 66) and nuclear, coal, and natural gas-fired production from the desert Southwest via Path 46.[20] Imported coal-fired electricity is expected to decline as power agreements expire and the city of Los Angeles phases out its use of such electricity by 2025.[21][22] In 2018, curtailment was 460 GWh, or 0.2% of generation,[23] but has increased since.[24][25]
In August 2020, during a heat wave which affected the entire West coast, air conditioning usage caused the peak load to hit 47 GW, and CAISO issued rolling blackouts to avoid a larger system shutdown. The state did not have enough generation ready to fulfill demand, and it was unable to import sufficient electricity from neighboring states who had no surplus themselves.[26][27] A 4 GW demand reduction alleviated the grid shortfall in the days after the blackouts.[28][29] State agencies identified three main causes: inadequate preparation for heat waves made worse by climate change, insufficient power in the early evening due to sequencing errors in the shift to renewable energy, and market mechanisms that allowed power to be exported during the shortage.[30]
Transmission grid
The electric grid is made of up electric transmission and electric distribution, with electric production by itself averaging about 44% of the cost nationally.[31] As of 2019, transmission costs are the fastest-growing part of the bill, and Transmission Access Charges (TAC) are applied regardless of how far electricity travels across the grid.[32]
California is part of the Western Interconnection, with transmission lines connecting to the Pacific Northwest including the California Oregon Intertie (with a capacity of almost 5 GW) as well as the Pacific DC Intertie, a HVDC line with a capacity of 3.1 GW which brings (predominantly hydroelectric) power from the Pacific Northwest to the Los Angeles area. From Utah, a 2.4 GW HVDC line, Path 27, provides coal generated electricity to Los Angeles. From the Southeast, Path 46 brings up to 10.6 GW of electricity from sources including hydroelectric, fossil fuels, nuclear, and solar from generating stations in Nevada and Arizona.
Transmission lines under construction as of 2019 include the TransWest Express, which would connect Wyoming to Nevada, which is already connected to Southern California via Path 46.
While experts have stated that more grid connections to other states would allow California to export its excess solar and wind generated electricity to other states during sunny times of the day, and to import wind generated electricity when wind is blowing in other Western states but not in California, the legislature has resisted allowing more connections for fear of losing sovereignty over the state's electricity supply.[33][34][35]
As of 2018[update], California had 80 GW of installed generation capacity encompassing more than 1,500 power plants; with 41 GW of natural gas, 26.5 GW of renewable (12 GW solar, 6 GW wind), 12 GW large hydroelectric, and 2.4 GW nuclear.[1]: 1
Legal renewables requirement
In 2006, the California legislature passed the Global Warming Solutions Act of 2006 which set a goal for 33% of electricity consumption in California to be generated by renewable sources by 2020.[36]
In 2015, SB350 mandated that electric utilities purchase 50% of their electricity from renewable sources by 2030.[37]
Then in 2018, Senate Bill 100 was passed which increased the renewables requirement for electric utilities to 50% by 2026, 60% by 2030, and 100% by 2045.[38]
Natural gas
As of 2019[update], California natural gas plants supplied a third of the state's total demand for electricity, (almost half of the state's in-state generation[1]) and supply the state with 41,000 megawatts of installed capacity.[39] Because renewables cannot generate power 24/7, and it is cost prohibitive to install enough solar panels, wind turbines and batteries to supply sufficient electricity to ensure resource adequacy during extended cloudy or windless periods, researchers have estimated that the state will still need between 17 and 35 GW of natural gas fueled capacity in 2050.[40][39]: 1[41]
California leads the nation in electricity generation from non-hydroelectric renewable energy sources, including geothermal power, wind power, and solar power. California has some of the most aggressive renewable energy goals in the United States.[42] The state is required to obtain at least 33% of its electricity from renewable resources by 2020, and 50% by 2030, excluding large hydro.[43][44] On May 13, 2017, the California Independent System Operator (ISO) reported that the state had broken a new instantaneous renewable energy record, with non-hydro renewables providing 67.2% of the total electricity on the ISO's grid, with another 13.5% being provided by hydro.[45] Intermittent solar power has led to a peak demand and peak production imbalance creating a "duck curve", where traditional power plants produce little generation at noon, ramping fast to high generation at dusk.[23]
The Alta Wind Energy Center in the Tehachapi Mountains is the largest wind power plant in the United States with 1,548 MW installed capacity.[49] A facility known as "The Geysers," located in the Mayacamas Mountains north of San Francisco, is the largest group of geothermal power plants in the world, with more than 750 MW of installed capacity. California's hydroelectric power potential ranks second in the United States (behind Washington State), and substantial geothermal and wind power resources are found along the coastal mountain ranges and the eastern border with Nevada. High solar power potential is found in southeastern California's deserts.
*[NOTE: As of Nov/2022, the 63 MW Argus Cogeneration Plant is no longer on-line and is currently being dismantled. Consequently, there are no coal-fired power stations operating within the State of California providing public electricity.]
California's investor-owned utilities were transitioning to time-of-use pricing, with SD&E slated to roll it out in 2019 and the others rolling it out in 2020.[67]
Electricity system data
As of 2021[update], 30.1% of electricity was imported (11.7% from Northwest and 18.4% from Southwest) out of which 22.6% was of unspecified origin and 30.9% were renewables. This compares with 33.6% of in-state generated electricity which comes from renewables.
Consumption increase for economy-wide decarbonization
California's total plan to decarbonize its economy by 2045 would require up to 70% more electricity consumption compared to 2022, in order to decarbonize parts of the economy reliant on fossil fuels, like the transportation sector and residential heating.[79]
California's crude oil and natural gas deposits are located in six geological basins in the Central Valley and along the coast. California has more than a dozen of the United States' largest oil fields, including the Midway-Sunset Oil Field, the second largest oil field in the contiguous United States.
As of 2022, California's crude oil output accounted for about 3% of total U.S. production.[83] Drilling operations are concentrated primarily in Kern County and the Los Angeles basin.[84] With twenty seven platforms along the coast as of 2020[update], there is substantial offshore oil and gas production.[85] There is a permanent moratorium on new offshore oil and gas leasing in California waters and a deferral of leasing in Federal waters.[citation needed]
California ranks third in the United States in petroleum refining capacity, behind Texas and Louisiana, and accounts for about 11% of total U.S. capacity, as of 2012.[84] In addition to oil from California, California's refineries process crude oil from Alaska and foreign suppliers. The refineries are configured to produce cleaner fuels, including reformulated motor gasoline and low-sulfur diesel, to meet strict Federal and State environmental regulations. As of 2017, California has 18 refineries with a capacity to process nearly 2,000,000 US barrels (240,000 m3) per day.[86][87]
Transportation is a major use of energy, driven in part by long commuting distances.[88] In 2017, transportation accounted for 40% of total energy use,[89] and in 2015, transportation was estimated to be the largest source of greenhouse gas emissions.[90]
Gasoline consumption fluctuates with economic conditions and gas prices, but has generally remained flat since 2000, despite increasing population.[91] In 2017, Texas surpassed California in gasoline consumption, despite California having 6 million more vehicles.[92] Most California motorists are required to use a special motor gasoline blend called California Clean Burning Gasoline (CA CBG).[93] By 2004, California completed a transition from methyl tertiary butyl-ether (MTBE) to ethanol as a gasoline oxygenate additive, making California the largest ethanol fuel market in the United States.[citation needed] There are four ethanol production plants in central and southern California, but most of California's ethanol supply is transported from other states or abroad.
As of 2018, California is a leader in the United States in electric vehicles.[94] California has the second highest rate of plug-in cars in the world, trailing behind Norway, and making up half of the electric car market in the US. The Alternative and Renewable Fuel and Vehicle Technology Program,[95] also called the Clean Transportation Program, arose out of 2007 law and is intended to drive growth in electric vehicles.[96] California faces a potential shortage in charging stations,[97] and setup California Electric Vehicle Infrastructure Project (CALeVIP) program to build more chargers.[98] In September 2020, California Gov. Gavin Newsom issued an executive order requiring all passenger cars and trucks (not delivery, long-haul, or construction vehicles) sold after 2035 be fully electric.[99] Experts have estimated that this will increase California's consumption of electric energy by 25%.[100] California operates Vehicle-to-grid (V2G) programs to let electric vehicles supply power to the grid when feasible, and to increase consumption when supply is ample. As of 2020[update], California's EVs have a combined charging capacity of 4.67 GW.[101][26][102]
Building energy
Buildings use energy for lighting, heating, ventilation, and air conditioning (HVAC) systems, escalators, elevators and water heating. In addition, municipalities pump water which requires energy; by one estimate, about 19% of electricity is used to treat, pump, and discharge water.[103] About 2/3 of California's home heating is supplied by natural gas, and most new homes are constructed with both natural gas and electric heating.[104]
California has led the United States from 2010 to 2017 with its sustainable energy plans (also known as "clean energy"), with Clean Edge's Clean Energy Index for 2017 rating it at 92.0, with the second ranked state being Massachusetts, at 77.8, and North Dakota the lowest at 8.0. California is the only state with extensive deployment of wind, solar, and geothermal energy. California's venture capital investments in sustainable energy are greater than the other 49 states combined, at $2.2 billion in 2012.[109] In August 2018, California's legislature passed legislation that mandates completely carbon-free electricity generation by 2045.[110][111]
Energy-efficient lighting regulations
In September 2019, the Energy Department announced the reversal of a 2014 regulation that would have taken effect on January 1, 2020 and implemented the last round of energy-saving light bulb regulations outlined by the Energy Independence and Security Act of 2007.[112][113] The ruling would allow some types of incandescent bulbs to remain in service. California, along with Colorado, Nevada, Washington, and Vermont, adopted its own energy standards.[114] The California regulations were challenged in court by light bulb manufacturers but a judge ruled it was proper under the congressional exemption previously granted.[115]
^ abcde"2018 Total System Electric Generation". California Energy Commission. Retrieved August 27, 2020. Source: CEC-1304 Power Plant Owners Reporting Form and SB 1305 Reporting Regulations. In-state generation is reported generation from units one megawatt and larger. Data as of June 24, 2019 ... In 2018, total generation for California was 285,488 gigawatt-hours (GWh), ... in-state generation dropped by 6 percent (11,494 GWh) to 194,842 GWh. ... Net imports increased by 6 percent (4,944 GWh) to 90,648 GWh,
^"California - Profile Overview". Energy Information Administration. January 16, 2020. Retrieved September 1, 2020. California's total energy consumption is second-highest in the nation, but, in 2018, the state's per capita energy consumption was the fourth-lowest, due in part to its mild climate and its energy efficiency programs.
^"California, State Energy Profile". Official Energy Statistics from the U.S. Government. Energy Information Administration. Archived from the original on December 29, 2010. Retrieved October 2, 2007.
^ abc Woolfolk, John (September 6, 2022). "Rolling blackout threat averted: Power was shut off only to some customers in Palo Alto, Alameda". San Jose Mercury News. Widespread blackouts didn't happen Tuesday. But it was close. And on a day when the Bay Area hit all-time heat records across the regions, the drumbeat of power warnings kept residents on edge. At one point, PG&E began notifying 525,000 customers that the blackouts were imminent. ... Palo Alto and Alameda, both of which have their own municipal utilities, were hit with rolling outages Tuesday night. The cities were directed by the ISO to reduce their electrical load. Power was shut off to 1,700 customers in Palo Alto and an unspecified number of customers in Alameda.
^ abHiltzik, Michael (October 1, 2020). "Column: Will California have enough electricity for all its EVs? Yes — but it will take work". Los Angeles Times. Archived from the original on October 15, 2020. "experts say the rare confluence of circumstances that caused those outages don't have anything to do with" {EV expansion}. The outages the California ISO ordered during a heat wave Aug. 14 and 15 were the product of an unusual combination of circumstances. These included the unexpected shutdown of a natural gas-fueled generating plant, an unexpected delay in returning a second plant to service, smoke from wildfires that reduced the generating capacity of solar units, and the regional nature of the heat wave, which increased air conditioner use in states that ordinarily would be exporting electricity to California.
^Penn, Ivan (August 20, 2020). "Poor Planning Left California Short of Electricity in a Heat Wave". The New York Times. Almost a week after the blackouts began, neither the grid operator nor state energy regulators have offered a clear and detailed explanation of why California was so short of power even though peak demand was lower than it had been during other hot days in recent years. They have broadly attributed the energy shortage on their inability to secure more electricity from other states and sources. ... When utilities cut power to their customers, the peak demand had reached 47,000 megawatts on Friday and 45,000 on Saturday. Those were far below the highest day — 50,270 on July 24, 2006 — or the 50,116 clocked three years ago.
^Roth, Sammy (June 5, 2019). "California has too much solar power. That might be good for ratepayers". Los Angeles Times. Retrieved August 20, 2020. Rothleder said overbuilding and curtailment are no substitute for the types of steps California will eventually need to take to fully replace fossil fuels with clean energy, such as investing in big energy storage projects, sharing more solar and wind power with neighboring states, ... Last year, for instance, the Legislature once again rejected then-Gov. Jerry Brown's plan for greater sharing of renewable energy across the West. The proposal would have unified the region's disparate power grids, reducing [solar] curtailment by allowing greater sharing of renewable energy across state lines, but lawmakers feared California could lose its sovereignty over its energy supply.
^Penn, Ivan (June 15, 2016). "Brown wants to resurrect a plan to expand the state's power grid, but some say it's not that simple". Los Angeles Times. Retrieved August 20, 2020. In addition, Senate leader Kevin de León and Assembly Speaker Anthony Rendon said they did not want California to lose authority to regulate the utility industry. ... Supporters of grid expansion say that a more regional approach to electricity will help manage the variable nature of solar and wind.
^Roth, Sammy (August 19, 2020). "Here's how California can keep the lights on while meeting its clean energy goals". Los Angeles Times. Critics, including the Sierra Club and labor unions, have argued the "big grid" concept would give red-state politicians too much sway over California's energy supply and could lead to jobs building solar and wind farms getting shipped out of state. Supporters counter that a coordinated regional grid would reduce the costs of phasing out fossil fuels, partly by giving California easier access to powerful winds that blow across the plains of New Mexico and Wyoming. A single western grid might also make it easier for power managers across the region to coordinate supplies during a heat wave like the one this week, without having to scramble to find available resources.
^Megerian, Chris; Panzar, Javier (October 7, 2015). "Gov. Brown signs climate change bill to spur renewable energy, efficiency standards". Los Angeles Times. Retrieved August 27, 2020. Under the legislation, which builds upon standards already on the books, California will need to generate half of its electricity from renewable sources such as solar and wind by 2030. ... Even though the goal of reducing gasoline use was not included in the final legislation, SB 350, Brown plans to use his executive power to keep working on the issue.
^Dillon, Laim (September 10, 2018). "California to rely on 100% clean electricity by 2045 under bill signed by Gov. Jerry Brown". Los Angeles Times. Retrieved August 27, 2020. Senate Bill 100 by state Sen. Kevin de León (D-Los Angeles) requires the state to obtain all of its electricity from clean sources — such as solar, wind and hydropower — by 2045. The bill also requires electric utilities and other service providers to generate 60% of their power from renewable sources by 2030, up from the 50% goal previously set for that date.
^ abRoth, Sammy (December 12, 2019). "California faces a crossroads on the path to 100% clean energy". Los Angeles Times. Retrieved August 20, 2020. But natural gas, a planet-warming fossil fuel, still generates one-third of the state's power ... The consulting firm released a study in June finding California might still need between 17,000 and 35,000 megawatts of gas capacity in 2050. At the high end, that's not far from the 41,000 megawatts of gas installed today.
^Ming, Zach; Olson, Arne (June 1, 2019). "Long-Run Resource Adequacy under Deep Decarbonization Pathways for California"(PDF). Energy and Environmental Economics, Inc. Retrieved August 22, 2020. Some form of firm generation capacity is needed to ensure reliable electric load service on a deeply decarbonized electricity system. ... Natural gas generation capacity is currently the most economic source of firm capacity. The least-cost electricity portfolio to meet the 2050 economy-wide GHG goals for California includes 17-35 GW of natural gas generation capacity for reliability. This firm capacity is needed even while adding very large quantities of solar and electric energy storage. ... It would be extremely costly and impractical to replace all natural gas generation capacity with solar, wind and storage, due to the very large quantities of these resources that would be required.
^"2014 Total System Electric Generation". California Energy Commission. June 30, 2016. Retrieved September 13, 2020. In 2014, total system power for California was 293,268 gigawatt-hours (GWh), about 1 percent lower than 2013. California's in-state electricity production remained virtually unchanged from 2013 levels at 198,908 GWh, a difference of less than 1 percent compared to the year before.
^"2015 Total System Electric Generation". California Energy Commission. July 11, 2016. Retrieved September 13, 2020. In 2015, total system electric generation for California was 295,405 gigawatt-hours (GWh), down about 0.5 percent from 2014's total system electric generation of 297,062 GWh1. California's in-state electricity production was down by 1.5 percent at 196,195 GWh compared to 199,193 GWh.
^"2016 Total System Electric Generation". California Energy Commission. June 23, 2017. Retrieved September 6, 2020. In 2016, total system electric generation for California was 290,567 gigawatt-hours (GWh), ... While California's in-state electric generation was up by 1.0 percent at 198,227 GWh compared to 196,195 GWh in 2015, net imports were down by 6,869 GWh to 92,341 GWh
^"2017 Total System Electric Generation". California Energy Commission. June 1, 2018. Retrieved September 6, 2020. In 2017, total system electric generation for California was 292,039 gigawatt-hours (GWh), ... California's in-state electric generation was up by 4 percent to 206,336 GWh compared to 198,227 GWh in 2016 while net imports were down by 7 percent or 6,638 GWh to 85,703 GWh.
^"2018 Total System Electric Generation". California Energy Commission. June 24, 2019. Retrieved September 6, 2020. In 2018, total generation for California was 285,488 gigawatt-hours (GWh), ... in-state generation dropped by 6 percent (11,494 GWh) to 194,842 GWh. ... Net imports increased by 6 percent (4,944 GWh) to 90,648 GWh
^"2019 Total System Electric Generation". California Energy Commission. June 24, 2019. Retrieved September 6, 2020. Total system electric generation is the sum of all utility-scale in-state generation plus net electricity imports. In 2019, total generation for California was 277,704 gigawatt-hours (GWh), ... decrease in net imports to 77,229 GWh
^"2020 Total System Electric Generation". California Energy Commission. June 24, 2021. Retrieved August 1, 2022. Total system electric generation is the sum of all utility-scale in-state generation plus net electricity imports. Total generation for California was 272,576 gigawatt-hours (GWh), down 2 percent, or 5,356 GWh, from 2019.
^"2021 Total System Electric Generation". California Energy Commission. 2021. Retrieved May 30, 2023. Total system electric generation is the sum of all utility-scale in-state generation plus net electricity imports. Total generation for California was 277,764 gigawatt-hours (GWh), up 2 percent, or 5,188 GWh, from 2020.
^"2022 Total System Electric Generation". California Energy Commission. 2022. Retrieved March 17, 2024. Total system electric generation is the sum of all utility-scale in-state generation plus net electricity imports. Total generation for California was 287,220 gigawatt-hours (GWh), up 3.4 percent, or 9,456 GWh, from 2021.
^ Lopez, Nadia (June 23, 2022). "Electricity use would surge under California's new climate plan". CalMatters. California's sweeping climate plan would increase electricity consumption by as much as 68% by 2045 — which would put an immense strain on the power grid unless hefty private and public investments are made in clean energy, state air quality officials said Thursday. ... The far-reaching strategy would transform the state, scaling back the use of fossil fuels by 91% by 2045 and scaling up electric cars and use of renewable energy, such as wind and solar. The plan aims to fulfill state mandates to reduce planet-warming emissions 40% below 1990 levels by 2030 and achieve carbon neutrality by 2045. ... To achieve the plan's goals, air board officials project that California will need about 30 times more electric vehicles on the road, six times more electric appliances in homes to replace gas appliances, 60 times more hydrogen supply and four times more wind and solar generation capacity.
^Lazo, Alejandro (September 23, 2020). "California to Ban Sales of New Gas-Powered Cars Starting in 2035". The Wall Street Journal. Retrieved October 21, 2020. California Gov. Gavin Newsom signed an order Wednesday that aims to end the sale of new gasoline and diesel-powered passenger cars in the state by 2035. ... The order also says that, "where feasible," medium- and heavy-duty vehicles such as trucks and construction equipment should be zero-emission by 2045.