California Pushes for More Renewables
California has ordered its utilities to procure more renewable energy before a reduction in federal tax credits takes effect. The state's Public Utilities Commission is accelerating the transition to solar, wind, and storage to lock in clean energy gains while incentives are still high.
In a strategic move to accelerate its clean energy transition, California is pushing its utilities to procure more renewable power before significant changes to federal tax credits take effect. The state's Public Utilities Commission (CPUC) is fast-tracking the acquisition of solar, wind, and energy storage to maximize federal incentives. This push is a direct response to the "One Big Beautiful Bill Act," which has moved up the expiration dates for key federal incentives like the Investment Tax Credit (ITC) and Production Tax Credit (PTC) for wind and solar projects. To qualify for the full credits, new projects now face a deadline to begin construction by July 4, 2026, or be in service by the end of 2027. In February 2026, the CPUC unanimously voted to order an additional 6,000 megawatts of clean energy capacity to be brought online between 2029 and 2032. This mandate is designed to ensure the state has sufficient clean energy to meet rising demand from data centers and the electrification of vehicles and buildings, while locking in lower costs for ratepayers. The 6 GW order requires utilities to add 2,000 megawatts in 2030, 2031, and 2032. While not prescribing a strict technology mix, the order mandates that all new resources must be zero-emitting. At least a quarter of the new capacity is required to come from long-duration energy storage or other "clean, firm" power sources that can provide electricity around the clock. This accelerated procurement is part of California's broader strategy to achieve 100% clean electricity by 2045, a goal set by Senate Bill 100. An earlier proposal to cap energy storage at 50% of the new procurement was removed to encourage the development of more diverse and longer-duration storage technologies. Outgoing CPUC President Alice Reynolds, in her final meeting, stated the procurement order aims to "thoughtfully balance the uncertainty with an identified need." The decision provides utilities with "alternative pathways for compliance, given the known challenges with resource procurement," she added. This proactive approach to securing renewable energy is intended to shield California ratepayers from the anticipated cost increases for renewable projects once the federal tax credits are no longer available. Industry groups had urged the CPUC to act swiftly, estimating that capturing the expiring federal tax credits could save ratepayers hundreds of millions of dollars per gigawatt of new clean energy.
