Environmental justice, conservation, and energy groups call for an orderly gas plant phaseout as batteries lower energy costs and safeguard public health
MEDIA CONTACTS:
Jessica Gable jessica@sunstonestrategies.org, 352-514-2927
Leela Yadav, leela@sunstonestrategies.org
SACRAMENTO, Calif. — Battery storage saves Californians money while improving public health compared to gas-fired power plants, according to new research from Regenerate California (a coalition led by California Environmental Justice Alliance and Sierra Club California) and the Center for Energy Efficiency & Renewable Technologies (CEERT). The analysis finds that battery storage is now cheaper, faster and more reliable than fossil gas—and is already helping to reduce consumer bills and blackouts across the state.
The report comes as California updates key reliability programs to reflect modern energy technologies, such as battery storage. According to the California Public Utilities Commission (CPUC), utilities’ cost to maintain sufficient reliable power surged by 357 percent from 2017 to 2022, largely because of gas infrastructure. These costs are passed directly to Californians through higher bills as a result of the state’s Resource Adequacy (RA) program, which requires utilities to secure enough power for periods of extreme demand. However, the experts behind the report suggest that reforming the RA programs to prioritize clean, cost-effective solutions—such as batteries paired with renewable energy—could help lower ratepayer bills and reduce reliance on expensive gas plants.
“Californians are overpaying for gas that isn’t performing. We now have hard evidence to back up what frontline communities have long suspected: gas-fired power plants aren’t worth the increasing costs it takes to maintain them,” said Heena Singh, Energy Justice Manager at California Environmental Justice Alliance (CEJA). “ Taking into account high medical costs and social burdens incurred by gas plants, it is a mystery why California’s leaders would want to pour money into keeping these antiquated facilities around.”
The report identifies key reasons why gas power plants are becoming obsolete, including:
- Older gas plants only operate during peak hours and are being outcompeted by cheaper renewables and evening batteries.
- Batteries respond much faster to grid needs and reduce reliance on outdated gas technology in the wholesale power market.
- California’s top three investor-owned utilities have raised costs for consumers by nearly 20 percent between 2019 and 2023, and aging gas plants are a major contributor.
- The flexibility and dispatchability of batteries make them an economically attractive long-term opportunity for Load Serving Entities, in turn reducing costs passed on to ratepayers.
- Health and climate-related social costs of gas-fired power plant use exceeds $820 billion.
As the financial outlook for older gas plants worsens, obtaining needed investments for upgrades and maintenance becomes riskier and costlier for the state, leading to higher costs shouldered by customers.
Meanwhile, battery storage costs continue to drop. The report’s authors argue that increased batteries paired with solar and wind will lead to gas replacement on the grid and lower costs; this will prompt a similar downward trajectory for RA costs. Additionally, CAISO has credited utility scale battery storage for averting blackouts while helping California meet its 100 days of clean power milestone one month earlier this year than in 2024.
“Californians are paying hundreds of millions of dollars every year to keep these aging plants online, though they only run for a few hours each year,” said Maia Leroy, Policy Director at the Center for Energy Efficiency & Renewable Technologies (CEERT). “Our analysis clearly shows that gas-fired plants are on a downward economic spiral. Battery storage technology, by contrast, is flexible, clean, and getting cheaper.”
The report also breaks down the many social costs of gas-fired generation, including pollution, health impacts, and higher utility bills. The authors highlight that because gas plants in California are primarily located in low-income communities and communities of color, marginalized groups are forced to bear the disproportionate brunt of these costs.
“Many of the social costs associated with gas-fired generation are often overlooked in economic analyses of energy sources,” said Roselyn Tovar, Energy Researcher at Communities for a Better Environment. “This report clearly demonstrates the significant gap between the economic and social impacts of gas plants and those of battery storage paired with clean energy.”
Key Recommendations from the Report Include:
- The CPUC should refine the Resource Adequacy program to develop cost-effective clean resources where they’re needed.
- The CPUC and the CAISO should create a coordinated, actionable strategy for the phase down of gas use and boost battery storage deployment.
- The CPUC and the CAISO should closely coordinate to ensure the expansion of transmission capacity needed to support the development of battery storage paired with renewables.
- The Governor’s Office, CPUC, and CEC should cease new investment into gas plants and support battery storage procurement.
- California agencies should reject extensions for Once-Through-Cooling (OTC) gas plants and focus on better alternatives on the market.
“It’s crucial for decision makers to recognize that battery storage offers economic relief at a time when so many Californians are having to choose between paying their energy bills or for other basic necessities,” said Julia Dowell, Senior Campaign Organizer at Sierra Club. “Not only do cost benefits make it the clear choice, but battery storage also improves reliability as we face more frequent heatwaves and extreme weather events.”
Webinar Recording
A Just Transition: The Rise of Battery Storage over Gas Plants
###
About Regenerate California
Regenerate California is led by the California Environmental Justice Alliance (CEJA) and the Sierra Club who, together, share a vision for California where we run on 100% clean renewable energy – ensuring our children grow up breathing clean air and the most impacted communities have access to renewable energy and local jobs.
About the Center for Energy Efficiency and Renewable Technologies (CEERT)
The Center for Energy Efficiency and Renewable Technologies (CEERT) is a partnership of major environmental groups and private-sector clean energy companies. We design and fight for policies that promote global warming solutions and increased reliance on clean, renewable energy sources for California and the West.