Otis Singleton
California has a large and growing population and a thriving economy, with a significant high-technology sector. The state has set a target of generating all of its electricity from low-carbon sources by 2045. In 2021, natural gas was the largest source of electricity generation in California, accounting for nearly half of the power generated. Solar photovoltaic energy ranked second, representing around 17.4% of the state's electricity production. California imports more electricity than any other state, with approximately 30% of its total system electric generation coming from other states or provinces.
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What You'll Learn
California's electricity imports
California imports a significant proportion of its electricity from other states and countries. In 2019, California was the largest net electricity importer of any state in the US, with net imports of 70.8 million megawatt-hours (MWh) or 25% of the state's total electricity supply. In 2021, electricity imports accounted for approximately 30% of total system electric generation in California.
California imports electricity from neighbouring states, including Oregon, Washington, and Nevada, which have abundant energy resources, particularly in hydroelectric power and geothermal energy. The state also imports electricity from other western states and Canadian provinces as part of the Western Electricity Coordinating Council (WECC). The Northwest category, comprising Alberta, British Columbia, Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming, and the Southwest category, including Arizona, Baja California, Colorado, Mexico, Nevada, New Mexico, Texas, and Utah, are the two geographical regions from which California imports electricity.
California also imports electricity from neighbouring countries, namely Canada and Mexico. Canada's abundant hydropower resources and Mexico's diverse energy mix provide California with additional options during times of high demand. These cross-border imports are facilitated by international transmission lines and cooperation agreements.
California's commitment to clean energy and reducing greenhouse gas emissions has influenced its electricity imports. By partnering with states that have strong renewable energy portfolios, California can import renewable energy, such as wind energy from Texas, to reduce its reliance on fossil fuels and lower its carbon footprint.
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In-state electricity generation
California has large energy resources, and in 2024, it was the eighth-largest producer of crude oil. The state was the second-largest importer of electricity in 2024, and that year, 57% of its in-state electricity was generated from renewables, with the remaining in-state generation being 35% from natural gas and the rest from nuclear. Natural gas-fired power plants typically account for almost half of in-state electricity generation.
California is one of the largest hydroelectric power producers in the United States, and with adequate rainfall, hydroelectric power typically accounts for close to one-fifth of state electricity generation. However, in 2021, California experienced record warmth, and annual in-state hydroelectric generation fell by 32% from 2020 levels to 14,566 GWh. Total hydroelectric generation, including imports, fell by 23% to 28,490 GWh from 37,023 GWh in 2020.
In 2021, California's total system electric generation was 277,764 gigawatt-hours (GWh), up 2% from 2020. Renewable energy generation increased by 3.5% in 2021, up 3,125 GWh to 93,333 GWh from 90,208 GWh in 2020. However, as total system electric generation also increased in 2021, renewable energy accounted for 33.6% of the total system mix, a 0.51% increase from 2020. California's non-CO2 emitting electric generation categories (nuclear, large hydroelectric, and renewables) accounted for 49% of its in-state generation, compared to 51% in 2020.
In 2022, total utility-scale electric generation for California was 287,220 gigawatt-hours (GWh), up 3.4% from 2021. Utility-scale renewable generation increased by 10.2% in 2022 to 102,853 GWh from 93,333 GWh in 2021. Solar generation increased by 24.1% to 48,950 GWh in 2022 from 39,458 GWh in 2021. Renewable and non-GHG (nuclear and large hydroelectric) resources accounted for 54.2% of total generation, compared to 52.1% in 2021.
California has set the target of generating all of its electricity from low-carbon sources by 2045. At present, just under half of its electricity is supplied by natural gas, about one-tenth from nuclear power, and up to one-fifth from in-state hydro, depending on rainfall. The state has set a goal of reducing its carbon dioxide emissions by 80% of 1990 levels by 2050, as required by its Global Warming Solutions Act of 2006 and a 2005 executive order.
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Electricity from renewables
California has been making strides in renewable energy, with sources including wind, geothermal, hydroelectric, and solar. In 2022, California reached 100% renewable energy on the grid for several days, a significant milestone. The state has seen a dramatic expansion of solar farms, with renewable energy more than tripling since 2005. This includes solar panels on building rooftops, which have helped reduce demand on the grid.
In 2024, about half of the state's power was generated by renewables, with hydropower, wind, and solar being the main sources. California is one of the largest hydroelectric power producers in the US, and this power source typically accounts for close to one-fifth of the state's electricity generation. However, in 2021, due to drought conditions, in-state hydroelectric generation fell by 32% from 2020 levels.
The state is also witnessing a boom in wind power projects, such as the Pine Tree Wind Farm in the Tehachapi Mountains. California's battery capacity has also been increasing, doubling between 2023 and 2024, and helping to provide reliable backup power to avoid blackouts.
While California still relies on fossil fuels, renewable energy sources are playing an increasingly important role in the state's energy mix. The growth of renewables has led to lower electricity prices for customers, debunking the myth that a grid fully running on renewables would result in higher prices.
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Electricity from fossil fuels
California has large energy resources and is a major producer of crude oil. In 2024, the state was the second-largest importer of electricity in the US, with 57% of its in-state electricity generated from renewables, 35% from natural gas, and the rest from nuclear power. Natural gas-fired power plants typically account for almost half of in-state electricity generation.
California's crude oil and natural gas deposits are located in six geological basins in the Central Valley and along the coast. The state has more than a dozen of the United States' largest oil fields, including the Midway-Sunset Oil Field, the second-largest oil field in the contiguous United States. In 2023, California's crude oil output accounted for about 3% of total US production.
California's electricity imports account for approximately 30% of its total system electric generation each year. These imports come from other western states and Canadian provinces, including Alberta, British Columbia, Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming.
While California is transitioning to renewable energy, fossil fuels still play a significant role in the state's energy mix. Natural gas power plants are still in operation, and researchers estimate that the state will need between 17 and 35 GW of natural gas-fueled capacity by 2050. This is because renewables cannot generate power 24/7, and it is costly to install enough solar panels, wind turbines, and batteries to ensure a reliable electricity supply.
California's plan to decarbonize its economy by 2045 will require up to 70% more electricity consumption compared to 2022 levels, in order to move away from fossil fuels in sectors such as transportation and residential heating. Fossil fuel companies in the state are exploring ways to adapt to the transition to clean energy, such as capturing carbon emissions to make natural gas projects more carbon-neutral.
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Electricity demand and supply
California has a large and growing population, a flourishing economy, and a major high-technology sector. The state's electricity demand has been rising steadily for many years. In 2000-2001, California faced an acute electricity supply crisis, and another occurred in 2020. The state did not build any new major power plants in the 1990s, despite a 13% population increase, although existing in-state power plants were expanded and power output was increased by nearly 30% from 1990 to 2001.
Between 2000 and 2015, California built nearly 500 new power plants to supplement the 700 operating in 2000, boosting power supplies by 43%. In 2016, the California Public Utilities Commission (CPUC) announced new rules for connecting new generation sources to the grid, with the aim of lowering overall costs for ratepayers.
California imports more electricity than any other state, with imports accounting for approximately 30% of total system electric generation each year. In 2018, 32% of its consumption was imported, mainly wind and hydroelectric power from states in the Pacific Northwest, and nuclear, coal, and natural gas-fired production from the desert Southwest. In 2021, imports increased by 2.5% due to increased imports from the Southwest, which helped maintain overall imports at similar levels to 2020.
In 2021, California's total system electric generation was 277,764 gigawatt-hours (GWh), up 2% from 2020. Renewable energy generation increased by 3.5% in 2021, but as total system electric generation also increased, renewables accounted for 33.6% of the total system mix, a slight increase from 2020. In 2022, total utility-scale electric generation was 287,220 GWh, up 3.4% from 2021, with utility-scale renewable generation increasing by 10.2%.
In 2021, natural gas was the largest source of electricity generation in California, accounting for nearly half of the power generated in the state. Solar photovoltaic energy was the second-largest source, representing 17.4% of the state's electricity production. In 2024, 57% of California's in-state electricity generation came from renewables, with the remaining in-state generation being 35% from natural gas and the rest from nuclear.
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Frequently asked questions
California's main sources of electricity are natural gas, solar energy, and hydroelectric power. In 2021, natural gas accounted for nearly half of the power generated in the state.
California imports a significant amount of electricity, with imports accounting for about 30% of its total system electric generation each year. In 2021, California imported 30.1% of its electricity, with 11.7% coming from the Northwest and 18.4% from the Southwest.
California has set ambitious targets for its electricity generation. It aims to generate 60% of its electricity from renewables by 2030 and to produce all of its electricity without fossil fuels by 2045.
Nuclear power plays a role in California's electricity generation, but to a lesser extent than other sources. In 2016, it was reported that nuclear power accounted for about one-tenth of the state's electricity generation. However, there are plans to extend the operating lifetimes of natural gas plants.
California's electricity generation has changed significantly over the years. Between 2000 and 2015, the state built nearly 500 new power plants, boosting power supplies by 43%. In recent years, there has been a shift towards renewable energy sources, with solar generation increasing by 24.1% from 2021 to 2022.
