California Grid Operator Sees Shortfall in Power Capacity Starting in 2021

The California Independent System Operator Corporation called for an immediate plan to address near-term reliability needs through 2022, according to a July 23 filing in response to the Public Utilities Commission’s rulemaking to refine long-term procurement planning requirements. The grid operator projects a gap of up to 2 gigawatts beginning in the summer of 2021 and increasing to 2.5 gigawatts in 2022. 

The ISO said that the plan should prioritize procurement of existing and new resources to be operational as soon as possible, and as a backstop, allow for the extension of the Water Resource Control Board’s regulations for gas-fired units needed to maintain near-term reliability.  With the procurement of new resources, the plan should allow for the retirement and replacement of the units that received the extension, the ISO said.

The grid operator called for a medium-term plan for the 2023-2026 period based on a strategy that allows for planned retirement of the Diablo Canyon Power Plant while maintaining reliability and addressing renewable integration needs. 

CAISO called for a decision on the near-term plan by fall 2019 to begin procurement before the end of this year, and develop a strategy to address long-term needs and clean energy goals by summer 2020.