California’s 85 GW Battery Storage Plan for 2035: What It Means for Energy

California aims to construct 85 gigawatts (GW) of new electric capacity by 2035 as part of its path towards 100% zero-carbon retail electricity by 2045. In enabling this, the California Independent System Operator (ISO) approved a $6.1 billion 2023–2024 transmission plan, enabling 26 new grid projects—offshore wind interconnections and considerable battery storage integration.

Among the pillars of this growth is the use of battery energy storage systems (BESS) to store excess renewable energy during solar midday peaks and sell during evening demand peaks. By June 2024, California's ISO region had about 11.2 GW of battery capacity, comprising over 200 utility-scale installations and complemented by solar or wind. These resources now supply nearly 5–8% of hourly system demand in peak periods, with both energy supply and ancillary services like frequency regulation.

Analysis & Insights

• Grid stability and renewable integration: The 85 GW target includes large battery storage, necessary to stabilize variable solar and wind, reduce curtailment, and flatten daily load fluctuations.
• Fast-track projects speed up deployment: Darden showcases the effectiveness of California's Opt-In program with its 30-day completeness review and 270-day environmental review. Fast-track approvals lower investment risk and lead time.
• Market and economic forces: Cost reductions, federal incentives (e.g., IRA tax credits), and a burgeoning pipeline—nationally projected to reach ~85 GW of utility-scale storage by 2035—make investment opportune.
• Policy and permitting hurdles: Progress is being made, but California must address project approval backlogs, rising commodity prices, and strict safety regulations especially post-catastrophe and fire-hazard problems.

Future Outlook: California's Battery Storage Industry by 2035

• Scaling up short-duration and long-duration storage: The CPUC envisions ~18–35 GW of short-duration (4–8 hr) storage and other long-duration systems between 2035–2045.
• Diversification of technologies: While lithium-ion remains on top, California's evolving regulatory landscape predicts eventual roll-out of 100‑hour storage for seasonal integration of renewables.
• Local economic returns: Projects like Darden catalyze employment—over 1,200 construction jobs and local investments—showcasing the socioeconomic value of clean-energy projects.

Conclusion

California's 85 GW clean capacity in 2035 is not only a policy objective—it's a battery storage industry catalyst. Through careful planning, expedited permitting, and strong fiscal incentives, the state is establishing a market-ready environment where energy storage businesses can succeed. For prospective customers, this is a very compelling value proposition: guaranteed clean power, grid reliability, cost savings, and a contribution to a cleaner energy future.