Orrick and Clean Energy Pipeline have launched a series of reports dedicated to exploring investment opportunities and challenges in the global renewable energy sector. In the first issue, we analyzed the investment opportunities arising from the U.S. Department of Defense’s major renewable energy procurement initiatives. In the second issue, we explored the evolving dynamics of the UK solar market as the industry moves towards the end of the Renewables Obligation subsidy regime. In this issue, we focus on the challenges and opportunities in the U.S. energy storage market, with specific focus on California’s energy storage procurement program.

The spotlight on energy storage has only intensified since we released our first article on the subject, Energy Storage: Opportunities, Challenges and Solutions, in February of this year. Last month, Southern California Edison (SCE) announced the results of its 2013/14 Local Capacity Requirements RFO (LCR RFO) in which SCE awarded over 260 MW of new energy storage contracts. Additionally, California’s three large investor owned utilities (IOUs) have now issued their energy storage solicitations required under California Assembly Bill 2514 (AB 2514, described in our February article) for approximately 119 MW of storage projects, and industry participants are keenly focused on those solicitations.