Dive Brief:
- The California Pubic Utilities Commission (CPUC) has approved five new storage projects totaling 83.5 MW / 334 MWh and a demand response program capable of contributing 4.5 MW as part of San Diego Gas and Electric's plan to add more renewables and improve grid reliability.
- Each of the lithium-ion battery storage facilities in San Diego and Orange counties is a four-hour battery to be developed by a different company. OhmConnect was tapped to manage the demand response program.
- California utilities have been directed by the state to procure energy storage, and SDG&E says it expects to develop or interconnect more than 330 MW of energy storage by 2030.
Dive Insight:
Energy storage is "playing a key role" in SDG&E’s operations now, according to the utility, and more will soon be added. Five years ago the CPUC directed the state's investor-owned utilities to procure 1,325 MW of storage, and last year the commission directed them to procure an additional 500 MW of behind-the-meter storage.
In a statement, San Diego Mayor Kevin Faulconer said the projects "will create good-paying jobs and help expand the use of renewable energy."
The OhmConnect demand response program will provide the equivalent of 4.5 MW, while the lithium-ion facilities will provide a combined 85 MW / 334 MWh.
| Company | Location | Project Size | Capacity | Expected Completion Date |
|---|---|---|---|---|
| Fluence Energy | Fallbrook | 40 MW | 160 MWh | March 2021 |
| Renewable Energy Systems (RES) America | San Diego | 30 MW | 120 MWh | December 2019 |
| Powin Energy | Escondido | 6.5 MW | 26 MWh | June 2021 |
| Advanced Microgrid Solutions (AMS) | San Juan Capistrano | 4 MW | 16 MWh | December 2019 |
| Enel Green Power | Poway | 3 MW | 12 MWh | December 2021 |
The largest project will be constructed by Fluence, a joint venture between Siemens and AES.
In January, state regulators signed off on new rules for energy storage aimed at enabling the resources to stack incremental value and revenue streams through the delivery of multiple services to the wholesale market.
When the commission directed Pacific Gas and Electric in January to procure energy storage or preferred resources, such as distributed solar, to replace the capacity of the three Calpine plants, it was believed to be the first time a utility looked to energy storage to replace capacity from an existing gas plant.
