Scott DiSavino & Nichola Garoom

California has begun to look for alternative power sources after decades of limiting growth in fossil fuel infrastructure.

California spent decades moving away fossil fuels in order to cut planet-warming greenhouse gases emissions. California and Texas, both U.S. States, have had to face significant problems with their electricity grid in the recent months. Global power cuts have forced many countries to boost coal or other fossil fuels production to keep power.

The state relies more on natural gas-fired power plants this year because extreme droughts have reduced hydropower output more than half and frequent wildfires frequently shut down electricity imports from other States.

California regulators are considering two options to expand the gas reserves at Aliso Canyon. These proposals would allow them to take another step in increasing gas reliance. The state may also consider closing the site down completely after a disastrous, long-lasting leakage at Aliso Canyon in 2015.

On Thursday, California’s Public Utilities Commission is expected to vote whether the facility in Los Angeles will be expanded by Southern California Gas Co. After the leak, site capacity was limited to 34 billion cubic yards. However, these proposals allow for an increase in storage at the Los Angeles-area facility by up to 21% or 100%.

Global demand for natural gas has risen faster than expected following pandemics-induced lockdowns. As a result, utilities across Europe and Asia have to be competitive in order to export liquefied petroleum gas (LNG). (LINK)

Southern California has had a tight gas supply for many years because of pipeline restrictions and the reduced availability at Aliso Canyon. These factors have led to a reduction in power generation and higher prices for Southern California consumers.

Martha Guzman Aceves (PUC Commissioner) stated that the smaller increase in capacity “will enable us to get this winter while still continuing our progress toward our goal to plan how to decrease or eliminate our use Aliso Canyon before 2027, 2035, and any time between.”

The proposals are opposed by environmental groups who want it to be closed completely.

“Instead of pursuing clean energy solutions that can eliminate the need for Aliso Canyon entirely, California is proposing to expand this dangerous facility – putting communities at greater risk of another catastrophic leak,” said Alexandra Nagy, California director of Food & Water Watch.

The contribution of hydropower to electricity has been reduced to 5% over the past five years, from an average of 12%. However, non-hydrorenewables such as wind and sun are predicted to grow to 37%.

According to U.S. Energy Information Administration, gas-fired power plants will generate approximately 45% of state’s power this year. This is up from 41% over the previous five years (2016-2020), according to EIA.

California’s average gasoline prices reached multi-year highs of $5 for every million British thermal units, or mmBtu (in the north) and $6 in California’s south.

Gavin Newsom, California Governor declared that California’s power grid was in “state emergency” due to extreme drought and wildfires. He ordered all energy agencies involved to act.

The state agencies responded in a variety of ways, including $196 million for four 30MW gas turbines installed at two locations in Northern California; keeping Redondo Beach’s gas-fired plant operational through 2023; and asking the federal government to permit some gas-fired plants without polluting restrictions for up to 60 days.

California wants all electricity to be produced from renewable sources by 2045.