“Now, by taking into account the grid conditions at their proposed project site, and designing an export schedule based on those conditions, project developers have a means to avoid potentially costly grid upgrades,” wrote the Interstate Renewable Energy Council (IREC), a non-profit that has lobbied in support of the adoption of LGPs, in response to CPUC’s decision.

“Not only will this save money for individual developers and customers, it will also enable the grid to accommodate significantly higher levels of renewable energy at a lower overall cost.”

The proposals were submitted by the Pacific Gas and Electric Company, Southern Edison Company and San Diego Gas & Electric Company, utilities that serve around 24 million customers in California. CPUC has been considering the proposals since 2022, and the decision follows growing interest in updating California’s grid infrastructure, with around US$370 million in new grid investment required in the state.

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