New SoCalGas Analysis Underscores Immediate Need for Clean Fuels Investment to Maintain California’s Grid Reliability in Net-Zero Scenario
The analysis indicates that by 2045, considerable renewable generation resources, like wind, solar, and batteries will be needed, including up to 10 more GW of clean renewable hydrogen generation to shore up the 2021 Clean Fuels Study (CFS) electric portfolios.
LOS ANGELES, Calif., July 11th, 2023 – A new detailed analysis released today by Southern California Gas Company (SoCalGas) further reveals how clean fuels like clean hydrogen and renewable natural gas (RNG) are poised to offer a solution to keep the electric grid reliable as California scales up intermittent renewable resources and electric demand. SoCalGas’ The Evolution of Clean Fuels in California Reliability Analysis expands on the company’s 2021 Clean Fuels Study (CFS) finding that infrastructure development for the delivery of clean fuels like hydrogen could support critical power generation and drive further adoption of clean fuels solutions for other hard-to-electrify sectors in California. The analysis underscores that by 2045, considerable renewable generation resources, like wind, solar, and batteries will be needed, including up to 10 more GW of clean renewable hydrogen generation to shore up CFS electric portfolios.
“Today, natural gas plants are a critical resource for system balancing and to help ensure electric reliability. Our modeling shows that as greater parts of the economy electrify, the resulting increase in electric demand could further strain the state’s electric grid during times of high demand,” says Jawaad Malik, chief strategy and sustainability officer at SoCalGas. “This updated analysis provides new insights into how California can achieve net-zero emissions in 2045 without sacrificing grid reliability as electric demand grows.”
By evaluating every hour in a year to model the potential for an electric system outage, the analysis produced more robust results and additional insights into what circumstances can cause the grid to
experience periods of strain.
“Early investment in clean fuels infrastructure could be key to supporting a reliable and resilient energy grid that is adequately prepared for future conditions,” Malik continued. “Due to the long lead times required for infrastructure development, the analysis underscores how the prioritization of immediate investment in the clean fuels network could be vital in helping California reach its long-term energy needs and decarbonization goals.” SoCalGas is a leader in sustainability, having been among the first and largest natural gas utilities in the United States to announce its aim to have net-zero greenhouse gas emissions by 2045. The company was awarded the top “Business Transformation Award” at Reuters Events’ 2022 Responsible Business Awards for having established truly transformative sustainability priorities with the potential to create impact at scale in the energy sector and beyond.
Toward that end, the California Public Utilities Commission (CPUC) approved SoCalGas’ request to track costs for advancing the first phase of the Angeles Link project, which could be the nation’s largest clean renewable hydrogen pipeline system and support significantly reducing greenhouse gas emissions from heavy-duty trucks, power generation, industrial processes, and other hard-to-electrify sectors of the Southern California economy. Angeles Link, the [H2] Innovation Experience, and more than a dozen hydrogen demonstration projects SoCalGas is currently pioneering, are all part of its ongoing efforts to help accelerate California’s energy transition.
Read more on how clean fuels infrastructure can help accelerate decarbonization efforts while supporting electric reliability in SoCalGas’ The Evolution of Clean Fuels in California Reliability Analysis.
For more information about SoCalGas’ clean energy innovation, visit https://socalgas.com/cleanfuels.
Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, and increasingly renewable gas service to over 21 million consumers across 24,000 square miles of Central and Southern California. Gas delivered through the company’s pipelines will continue to play a key role in California’s clean energy transition—providing electric grid reliability and supporting wind and solar energy deployment. SoCalGas’ mission is to build the cleanest, safest and most innovative energy infrastructure company in America. In support of that mission, SoCalGas aspires to achieve net-zero greenhouse gas emissions in its operations and delivery of energy by 2045 and to replacing 20 percent of its traditional natural gas supply to core customers with renewable natural gas (RNG) by 2030. Renewable natural gas is made from waste created by landfills and wastewater treatment plants. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. SoCalGas is a subsidiary of Sempra (NYSE: SRE), an energy infrastructure company based in San Diego.
For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook.