California regulators have ordered utilities to procure 6 gigawatts (GW) of new clean energy capacity between 2029 and 2032, adding 2 GW per year. Of this total, 1.5 GW is specifically earmarked for technologies excluding standalone solar, and requiring either long-duration energy storage or high capacity factors.
Addressing Future Energy Needs
The California Public Utilities Commission (CPUC) vote on February 26, 2026, initiates a process to secure additional energy resources in anticipation of growing demand. The state previously predicted an energy shortfall in the early 2020s and demonstrated its ability to deploy energy storage to bolster grid reliability.
The CPUC order mandates that local electricity providers procure capacity to maintain system reliability in line with forecasted demand growth. Specifically, the order calls for 2,000 megawatts (MWs) of net qualifying capacity (NQC) by June 2030, an additional 2,000 MWs by June 2031, and a final 2,000 MWs by June 2032.
Load Growth and Distribution
The CPUC projects a total of 177 terawatt-hours (TWh) of electricity demand growth across California’s 31 load serving entities. Southern California Edison is expected to account for 29% (51 TWh) of this growth, while King City Community Power faces a comparatively smaller increase of 36 MWh.
Procurement obligations are determined by peak demand growth, not total electricity demand. For example, Southern California Edison, responsible for 35.8% of peak demand growth, must procure 716 MW of the 2 GW slated for 2030. King City Community Power’s obligation for 2030 is 0.4 MW, increasing to 1 MW in the following two years.
Capacity Ratings and Technology Focus
Capacity will be evaluated based on its ‘effective load carrying capability’ (ELCC), measured in ‘net qualifying capacity’ (NQC). A standalone solar plant is rated at approximately 10% of its AC capacity, while a four- or eight-hour battery is currently rated at 90–95% of its capacity output. Standalone solar is not eligible for this procurement.
The CPUC anticipates that solar paired with four-hour energy storage will comprise the majority of procured capacity. An additional 750 MW is reserved for technologies with eight-hour or longer energy storage, potentially co-located with solar. The final 750 MW is designated for technologies that are neither “leverage limited nor weather dependent,” excluding solar and wind, and are expected to maintain a capacity factor above 80% annually.
Long-Term Projections
Currently, the CPUC reports approximately 25 GW of utility-scale solar deployed in California. Projections indicate an additional 10 GW of solar capacity by the finish of 2031, with a potential doubling of capacity over the next 15 years. Solar, alongside wind and geothermal, is expected to dominate California’s future energy landscape.
Frequently Asked Questions
What is the total amount of new capacity the CPUC is ordering?
The CPUC is ordering the procurement of 6 GW of new net qualifying capacity between 2029 and 2032, with 2 GW to be added each year.
Is standalone solar eligible for this procurement?
No, standalone solar is explicitly excluded from this procurement order.
How is capacity rated under this order?
Capacity will be rated on its ‘effective load carrying capability’ (ELCC), measured in ‘net qualifying capacity’ (NQC). The rating varies by technology, with batteries receiving a higher rating than standalone solar.
As California continues to transition to cleaner energy sources, how will the state balance the need for reliable power with the integration of intermittent renewable resources?
