California amps up pressure on grid buildouts that take too long

California’s grid expansion has lagged behind clean energy targets, with 7 to 8 gigawatts of new capacity needed annually for two decades to meet state climate goals. Nearly 22 gigawatts of renewable and battery projects depend on transmission upgrades already delayed, according to a November 2025 California Public Utilities Commission report. Governor Gavin Newsom signed Assembly Bill 2493 to impose oversight on utilities and transmission developers, requiring project schedules and enabling remedial actions if timelines are missed.

The new law establishes a transmission development monitor within the CPUC to track progress on major upgrades requiring permits, aiming to prevent last-minute delays that disrupt clean energy project planning. Clean energy developers report receiving late notices about substation upgrades being postponed by years, disrupting project timelines and investment decisions. The legislation seeks to provide transparency and advance notice to developers whose projects rely on timely transmission infrastructure.

Transmission line construction faces persistent challenges nationwide, including local opposition and cost concerns, but California’s climate targets make delays particularly consequential. The state grid operator has approved nearly $28 billion in transmission projects over five years, yet utilities have struggled to deliver on schedule. The new oversight mechanism is designed to address systemic delays without punitive measures, focusing on accountability and coordination.

The transmission bottleneck reflects broader grid modernization struggles, with just under half of approved projects since 2000 completed and operational. California’s legal challenges against federal vehicle emissions standards underscore its role in shaping national energy policy, while recent bills aim to integrate distributed resources like rooftop solar and EV batteries into the grid.