On April 16, 2003, the State of California published a
Draft Energy Action Plan. Parts of this Plan are particularly encouraging to
proponents of thermal energy storage. Below are a few quotes, highlights and
statistics from the Plan that support an optimistic outlook for thermal
The Action Plan points out that California has the
fifth largest economy in the world with a population that is expected to
exceed 40 million by 2010. Quoting from the Plan, "California's
economic prosperity and quality of life are increasingly reliant upon
dependable, high quality, and reasonably priced energy. It is imperative
that California have reasonably priced and environmentally sensitive
energy resources to support economic growth..."
According to the Plan, the state currently uses 265,000
gigawatt-hours of electricity per year and consumption is growing at 2
percent annually. Almost one third of the in-state generation base is over
40 years old. In the area of new generation capacity, the Plan estimates a
statewide need for 1,500 to 2,000 megawatts per year.
The Plan indicates that a peak electrical demand of
52,863 megawatts occurred in July, 2002 and,
"Peak demand is growing at 2.3 percent per year,
roughly the equivalent of three new 500-megawatt power plants. Residential
and commercial air conditioning represent at least 30 percent of the
summer peak electricity loads." .... "Peak demand growth is expected to be
approximately 1,400 MW per year for the next two years..."
Sections of the plan reveal that while 29 to 42 percent
of California's generation used natural gas over the past decade, 85 percent
of the gas is supplied by pipelines from outside the state. The Plan also
warns that, "The high and volatile price of natural gas contributed
significantly to the energy crisis in 2000-2001 and concerns about
manipulation of the market and scarcity persist."
Although thermal energy storage is not the primary focus
of the Plan, it is clear that this technology offers one important means by
which the Plan can be achieved. Thermal energy storage is an environmentally
friendly alternative to new power plant construction and is capable of
meeting and reducing peak demands. Thermal energy storage is equivalent to
new generation capacity without direct vulnerability to the supply or price
of natural gas. Thermal energy storage is a proven and cost effective
technology that should be even more attractive as dynamic pricing policies
for electricity and incentives for demand reduction, as envisioned in the
state's plan, are implemented.