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Significance

High temperatures and low rainfall levels have reduced the contribution that hydroelectric power makes to the state’s clean energy generation efforts and its overall electricity supply. Although solar power continues to grow fast, the state’s onshore wind market has stalled, forcing extended reliance on nuclear and gas-fired generation.

Impacts

California’s retail electricity prices are likely to remain well above the national average, partly due to high grid costs.

The state market for energy storage looks set to increase rapidly over the next decade.

Natural gas will retain an important baseload and balancing role in the Californian electricity system beyond 2030.

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