How California is Leading the Path to Carbon-Free Energy

By Pradipta Tripathy, Senior Director, Energy & Sustainability Solutions, Honeywell

As the world grapples with the urgent need to combat climate change and reduce greenhouse gas emissions, the state of California has emerged as a frontrunner in the pursuit of carbon-free energy solutions. This environmentally conscious state has set ambitious goals and implemented groundbreaking policies that are paving the way for a sustainable energy future. For instance, legislative targets set by California in 2022 aim for 90% renewable energy and zero-carbon electricity ⁱ by 2035, rising to 95% by 2040 en route to the eventual goal of 100% renewable energy by 2045.

The state has seen progress on numerous fronts. For example, California has taken significant steps to electrify its transportation sector ⁱⁱ , a major source of greenhouse gas emissions. The state has invested in electric charging infrastructure and incentives for electric vehicles (EVs), making it more accessible for consumers to transition to greener modes of transportation. California’s zero-emission vehicle mandate has also encouraged automakers to develop and sell more EVs in the state. As part of its Advanced Clean Cars II regulations, all new passenger cars, trucks and SUVs sold in California will be zero-emission vehicles by 2035 ⁱⁱⁱ .

Stored power, sustainable future

California continues to make significant strides on its path to carbon-free energy, with renewable sources like solar, wind, and geothermal accounting for about 35% of the state’s electricity generation in 2021^iv . In fact, California is scaling new heights in carbon-free energy production. Clean energy demand was momentarily met for a day in May 2022 followed by seven days in 2023. In 2024, clean energy has already supplied 100% of grid demand for 31 days,^v with solar energy representing the primary energy source.

What’s more, on the evening of April 16th, 2024, a Battery Energy Storage System (BESS) supplied over 6 GW of energy, stored mainly from clean sources ^vi a 1000%+ increase in energy storage capacity compared to 2020 levels. This is significant because wind turbines don’t produce power in the absence of wind, and solar cells can’t produce zero-carbon electricity when sunlight is not available. To truly optimize sustainability and effectively use renewables, a BESS is necessary to store captured energy for use even when the wind is not blowing, or the sun is not shining.

Battery energy storage systems are key enablers of renewable energy use. They allow intermittent sources like wind and solar to contribute to our daily energy needs by efficiently storing generated energy for later use. Additionally, such systems can help minimize electricity bills by charging during periods of cheaper energy availability and discharging during peak demand when electricity is costlier.

Overcoming curtailment

Following in California’s footsteps, similar positive trends are emerging across the nation, notably in regions like the Southwest and the Northeastern United States. However, the rise in clean energy also brings certain challenges, such as solar and wind generation’s weather dependency, which can lead to potential oversupply and subsequent energy curtailment.

CAISO data ^vii indicates a growing trend in renewable generation curtailment in California. Curtailment is the reduction of output of a renewable resource below its potential maximum production level. Some of the generation curtailment can be attributed to oversupply and lack of demand, however most of it is due to transmission congestion. The reality is that building of transmission infrastructure has not progressed as rapidly as anticipated. However, infrastructure upgrades are momentous because it is anticipated that they will enable the selling of excess sources of renewable energy to neighboring states during the hours of oversupply.

While the approval and build-up of transmission infrastructure upgrades can be a lengthy process, interim solutions are available through a blend of technological innovation, consumer behavior adjustments and regulatory frameworks. Strategies such as load shifting and dynamic utility pricing, coupled with the wider adoption of flexible loads like electric vehicles and BESS, offer viable short-term options.

Capitalizing on incentives

Recent governmental initiatives like the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) are offering essential rebates, grants, fundings and incentives to expedite the deployment of flexible loads and renewable generation.

These incentives coupled with state government and local utility energy management programs can provide anywhere between 30-55% of capital expenditure ^viii needed for these renewable and flexible load deployment projects. Businesses across various sectors including education, healthcare, data centers and commercial real estate can capitalize on these opportunities to be self-sufficient in their energy needs, and advance their Environmental, Social and Governance (ESG) goals.

Connect with a Honeywell expert today to learn more about how our solutions can help your business become more sustainable.

[i] Legislative Analyst’s Office, Summary of Major 2022 Climate and Energy Legislation [Accessed May 9, 2024]

[ii] Environmental Defense Fund, California paves the way to an electric vehicle future with new electrification framework [Accessed May 9, 2024]

[iii] CA.gov, Cars and Light-Trucks are Going Zero [Accessed May 9, 2024]

[iv] CA.gov, 2021 Total System Electric Generation [Accessed May 9, 2024]

v Governor of California Office, Clean energy keeps exceeding California’s grid demand [Accessed May 25, 2024]

[vi] Governor of California Office, Clean energy keeps exceeding California’s grid demand [Accessed May 25, 2024]

[vii] California ISO, Impacts of renewable energy on grid operations [Accessed May 9, 2024]

[viii] IRS, Clean Energy Tax Incentives for Businesses [Accessed May 22, 2024]

Publication 5886 (Rev. 3-2024) (irs.gov)