Balancing Summer Challenges and Changes in CAISO

Since last summer's heat event and grid emergency, CAISO has implemented numerous enhancements to increase resource sufficiency and overall grid reliability, including focusing on the development of battery energy storage systems (BESS) and distributed energy resources (DERs) to meet growing demand. These provisions have helped balance the region's growing demand and supply stack, but summer conditions in the West have grown increasingly volatile. The recent heatwave has highlighted some of the major challenges the ISO faces to keep the lights on, AC running, and the grid stable.

On August 31st, Governor Gavin Newsom proclaimed an “Extreme Heat Event” state of emergency in California upon an upcoming all-time peak load, tight supply conditions and forecasts of sustained high heat. In the days that followed, CAISO continued to recognize strain on the grid and an inability to meet forecasted demand levels, causing them to take further steps to balance the grid with emergency generation capacity and demand response. A similar emergency proclamation was signed in July of 2021 to signal necessary engagement from generators and consumers, aimed to increase generation and reduce load amid high summer temperatures and raging wildfires. 2021’s emergency proclamation also proved beneficial, with California able to mitigate rolling blackouts during stressed grid conditions - keeping the lights on and power flowing for consumers in the region. 

Since this time last year, CAISO has focused on procuring greater and more diverse generation resources to help balance the grid during these tight conditions, and so far this summer these additions have proved critical. 

In this white paper, we’ll evaluate the events of 2021 vs. 2022 and use Yes Energy’s comprehensive data analytics tools to analyze the following: 

• load analysis 
• BESS development
• RTLMP pricing

We’ll use our analysis to show how investing in BESS, managing rising peak loads and utilizing demand response are all major contributors to California’s grid reliability - helping to keep the lights on and AC running during extreme summer days.