The California Public Utilities Commission (CPUC) announced on Mar. 12 its ongoing efforts to transition the state’s electric grid to supply all retail electricity sales with renewable and zero-carbon sources by 2045.
This initiative is central to California’s climate agenda, as more residents adopt electric technologies such as heat pumps, induction stoves, and electric vehicles. The shift increases demand for reliable, clean energy while aiming to keep rates affordable for consumers.
Leuwam Tesfai, Executive Director of the CPUC, said, “The CPUC is working in real-time to make California’s vision for carbon-free electricity a reality and secure a cleaner and more prosperous future for all Californians. Importantly, we are also implementing the least-cost path to decarbonizing our electricity system while ensuring utilities maintain safe and reliable service to customers.”
The CPUC administers the Renewables Portfolio Standard (RPS) program, which requires retail electricity providers—including utilities and community choice aggregators—to meet specific targets for renewable energy use. Senate Bill 100 mandates that at least 60 percent of retail sales come from renewable resources by 2030 and that all electricity be sourced from carbon-free options by 2045. Cheryl Lee, Supervisor for Renewables Procurement at the CPUC, said, “Since the establishment of California’s RPS program in 2002, the CPUC has guided policies, enforcement, and programs that allowed California to meet and exceed the RPS and build an electric system that at times can provide 100 percent clean energy.”
Since 2020, over 27,000 megawatts of new clean energy have been developed in California with contracts for an additional 22,000 megawatts by 2030. A February 2026 decision requires providers to procure another 6,000 megawatts of new clean energy and storage capacity by 2032—at least a quarter of which must come from resources offering firm power or long-duration storage.
To support this transition while maintaining fair rates and reliability, the CPUC coordinates with entities like the California Independent System Operator on transmission planning. The commission also regulates demand response programs that encourage customers to shift or reduce usage during peak periods.
Currently, more than two-thirds of California’s grid is powered by carbon-free sources. In recent years there has been a significant increase in battery storage installations—now totaling about 17,000 megawatts—and record levels of renewable procurement. By 2025, California’s grid operated on entirely clean power for nearly six hours per day on average—a marked rise since previous years.
Future articles will explore how these regulatory efforts extend into other sectors such as buildings and transportation as part of achieving statewide net zero emissions.
