Dive Brief:
- Southern California Edison has selected a subsidiary of Calgary-based AltaGas Ltd. to construct a 20 MW storage project with a discharge capacity of 80 MWh at the utility's Pomona Facility in the east Los Angeles Basin of Southern California.
- AltaGas Pomona Energy Storage Inc. will build, own and operate the project, which is estimated to cost $40 million to $45 million and could be online by the end of the year.
- Greensmith Energy Management Systems will provide the lithium-ion batteries, software control platform and power conversion technology.
Dive Insight:
California utilities are racing to bring storage online, and the AltaGas Pomona Energy Storage Project would be one of the largest projects in the nation. State regulators are pushing utilities to procure storage in efforts to avoid power outages as well as integrate more renewable energy. And the SCE contract is a big move for AltaGas, as it looks to provide more energy solutions in the state.
"Winning this RFO represents an important next step as we continue to advance our California power strategy," AltaGas President and CEO David Harris said in a statement. "Adding battery storage to our California power portfolio proves the versatility of our asset base and greatly enhances the value of what we can offer the California and Desert Southwest markets through integrated energy centers providing clean reliable electricity."
The AltaGas announcement comes a week after the California Public Utilities Commission approved two energy storage projects proposed by San Diego Gas & Electric. AES will construct 37.5 MW of storage projects on utility-owned property in Escondido and El Cajon, Calif.
Under the terms of a 10-year agreement with SCE, AltaGas will provide SCE with 20 MW of resource adequacy capacity for a 4-hour duration or the equivalent of 80 MWh of energy discharging capacity. In return, AltaGas will receive fixed monthly resource adequacy payments under the agreement and will "retain the rights to earn additional revenue from the energy from the lithium-ion batteries," the company said.
AltaGas also said it is continuing to work on repowering the existing 44.5 MW gas-fired Pomona Facility, and in the first quarter, submitted an application with the California Energy Commission. The application review process will take about a year, and would make significant changes to the plant.
AltaGas said the repowered facility could be comprised of more efficient gas-fired technology with capacity up to 100 MW. The company already owns six natural gas-fired power generating facilities in California.
