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California Energy

The California energy market has profoundly impacted the competitive landscape, especially in energy storage which is now the new solar. However, the changes in California go much further, forcing energy-intensive companies to rethink their energy procurement strategies.

Although California’s population increased by 13% during the 1990s, the state did not build new central power plants. Instead, California expanded existing in-state power plants, and power output was increased by nearly 30% from 1990 to 2001. Between 2000 and 2015, California built almost 500 new power plants to supplement the 700 operating in 2000, boosting power supplies by 43%.

Data Facts

In 2016, the California Public Utilities Commission (CPUC) announced new rules for connecting subsequent generational power sources to the grid. Utility companies had to estimate connection costs, and developers had to limit payment to a ±25% change of the estimate. CPUC expected the rules to lower overall costs for ratepayers. In addition, California required 1.3 GW of utility storage and studied long-duration bulk energy storage. The state allocated $83 million per year from 2017 to 2019 for behind-the-meter storage. The plan was amended in 2020 to a combined $613 million by 2024.

Post Covid-19

Since the rise of the COVID-19 pandemic, the energy dynamic has shifted on several fronts. Today, some companies consider savings rather than profit margin to stay afloat, while others seek to ride out the pandemic tidal wave. Atlas Clean Energy has identified a pre- and post-COVID-19 energy portfolio and introduced common-sense solutions, allowing companies to confront the challenges of turbulent times. The formula is simple but elegant:

Identify the highest cost of energy operations.
Mitigate high energy costs with applicable best practices in facility operations.
Procure state-of-the-art solutions to reduce the carbon footprint and other cost factors related to energy expenditures.
Due to the pandemic, the Department of Energy (DOE) signed a note of energy cost, especially on the residential front. Electricity use in April and May 2021 averaged 6 to 7 percent below pre-COVID levels. In the first two weeks of June, that drop was cut in half, averaging 2.8 percent below the pre-COVID baseline. At the same time, deaths from COVID-19 continue to climb.

Since spring of 2022, most cities we are tracking have seen a growth in power use, with some cities using as much or more electricity as pre-COVID levels (Energy Policy Institute, 2021). California manufacturing depends on resilience solutions, such as storage, supply chain, and redundancy protocols. Resiliency is also imperative for food processing and refrigeration, dependent on minimizing product spoilage, which has deferred the profitability potential for these companies. Atlas can provide a modeling study, demonstrating where we can leverage food spoilage or operational exposure, given that we are provided with the data and billing. For more information, please email us at info@ac.energy, or schedule a Zoom Meeting for more details.

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About Our Company

Atlas Clean Energy (ACE) began as a consultancy for California businesses and their offshore manufacturing sites (maquiladoras) across the US–Mexico border. We quickly identified operational functions in need of improvement between parents and subsidiaries, especially regarding energy procurement programs.

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California Energy

Data Facts

Post Covid-19

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