PG&E Storage Table

Pacific Gas & Electric requested that state energy regulators approve five new energy storage projects totaling 423 MW, the first phase of a larger set of projects set to come on line by Aug. 1, 2023.

PG&E filed to the California Public Utilities Commission for approval of the procurement, the result of a competitive request for offers the utility issued in February. The projects include transmission-connected storage, a solar/storage combination and a geothermal/storage combination.

The RFO flowed from a November 2019 CPUC decision that was meant to address concerns about electricity reliability and required 3,300 MW of new resource-adequacy capacity [D19-11-016]. In the decision, the CPUC declined to mandate a particular megawatt requirement for hybrid generation and storage projects. In the decision, the commission also adopted a controversial recommendation that the State Water Resources Control Board delay the implementation of once-through-cooling regulations, to keep needed gas-fired capacity on line (see CEM No. 1564).

"As we continue to integrate large amounts of intermittent renewable energy, we are now taking advantage of advancements in energy storage technology to ensure that customers continue to receive clean and reliable power from a flexible and dependable electric grid," Fong Wan, PG&E senior vice president of energy policy and procurement, said in a news release.

PG&E was responsible for 716.9 MW for its bundled-customer portion of the procurement. The CPUC decision required that at least 50 percent of load-serving entity resources come on line by Aug. 1, 2021; at least 75 percent by Aug. 1, 2022; and the remainder by Aug. 1, 2023.

PG&E sent out its offer for the resources on Feb. 28, for the purchase of eligible system RA to come on line by Aug. 1, 2021. PG&E received 23 unique offers from 12 counterparties, it said in the CPUC filing [16-02-007].

According to the filing, PG&E applied five criteria to evaluate the offers: net market value in dollars per kW; project viability; credit; safety; and supply chain responsibility. Participants could submit offers for four agreement types: long-term resource adequacy; behind-the-meter resource adequacy; resource-adequacy confirm; and demand response.

When asked what led PG&E to choose storage, spokesman Paul Doherty said the solicitation did not specify any particular technology, and PG&E did receive offers from other resource types. "Ultimately, using a specific evaluation methodology which included both qualitative and quantitative criteria, PG&E chose the offers that best met the RFO objectives and requirements including having a high viability of coming on line by August 1, 2021," he said.

The proposed projects include:

  • With Diablo Energy Storage LLC: The Diablo Energy Storage Project, comprised of three separate 15-year agreements totaling 150 MW. The three projects will be stand-alone lithium-ion battery storage projects in Contra Costa County, being added to an existing 50-MW project already in development.
  • With Dynegy Marketing and Trade LLC: The Vistra Energy MOSS100 Energy Storage Project, comprised of a 10-year agreement for 100 MW. The project is a transmission-connected, stand‑alone lithium-ion battery storage project in Moss Landing, California, and is an expansion of a 300-MW energy storage project already under development. The project has completed the California Independent System Operator interconnection process and has an executed interconnection agreement, PG&E said. The facility will be owned by Dynegy Marketing and Trade, a subsidiary of Vistra Energy Corp., which merged with Dynegy Inc. in April 2018. The combined entity manages a portfolio of 41 GW of installed capacity across 20 states.
  • With Gateway Energy Storage LLC: The Gateway Energy Storage project, comprised of a 15-year agreement for a transmission-connected, 50-MW, four-hour-duration, stand‑alone lithium-ion battery storage project in San Diego. The Gateway project is a wholly owned subsidiary of Bolt Energy LLC, which is a subsidiary and affiliate of LS Power Associates. Bolt was formed on Jan. 30, 2019, with $215 million of equity commitments from its members for the purpose of building, financing and operating a portfolio of four California battery energy storage projects, including the Diablo Energy Storage project. LS Power Group personnel will be responsible for all services required for the project, including engineering services, development support, financial support and other services.
  • With NextEra Energy Resources Development LLC: the Blythe Energy Storage 110 project, comprised of a 15-year agreement for 63 MW. The project is a lithium-ion battery energy storage resource to be co-located with an existing 110-MW solar project built in 2016 in Blythe, California, in Riverside County.
  • With Coso Battery Storage LLC: The Coso Battery Storage project is comprised of a 15-year agreement for a 60-MW, transmission-connected, stand‑alone lithium-ion battery energy storage resource, and is co-located with an existing geothermal project in Little Lake, California, in Inyo County.

As of this month, PG&E has awarded contracts for procurement of more than 1,000 MW of storage capacity to be installed in its service territory by the end of 2023, the company said.