Energy market prices are expected to decline as wind and solar energy displace gas. At the same time, real-time energy prices will become more volatile because of the intermittency of the renewable energy sources, studies by California Independent System Operator revealed Nov. 16. The studies, which are part of CAISO\u2019s renewable energy integration reports, were presented this week during a workshop on energy storage and automated demand-response technologies to support renewable energy integration. The studies expect prices to be more volatile--and perhaps decline--for renewables simply because of market penetration. The California Energy Commission-sponsored event explored ways that energy storage and automated demand-response technologies can support renewable energy integration in the state. It also looked at the challenges of developing and deploying the technologies to support renewable integration into California\u2019s grid. Assembly Bill 2514, which Governor Schwarzenegger signed Sept. 29, requires the Energy Commission to review and approve the public utilities\u2019 plans to determine appropriate targets and procure viable and cost-effective energy storage systems to meet the targets. According to Udi Helman, CAISO\u2019s principal market economist, key findings of renewable integration studies include that with the increase in renewables, ancillary service market prices are expected to be dictated by several factors, including the additional requirements and availability of certified renewable resources. Pacific Gas & Electric senior project manager Albert Chiu said that the utility\u2019s conducting a pilot program to look at the technical feasibility of providing various services to CAISO to mitigate effects on the grid from renewables generation. PG&E\u2019s Intermittent Renewable Resource, or IRR, pilot program is intended to demonstrate whether the coupling of demand resources with embedded or thermal energy storage can provide regulation and real-time energy services to the CAISO as well as integration with CAISO systems.