Six months after inking California’s largest single power storage procurement, utility Southern California Edison has added one other three large utility-scale battery tasks to its portfolio—plus a behind-the-meter battery venture with Sunrun.
Monday’s new contracts embrace 585 megawatts of lithium-ion batteries: NextEra Power’s 325-MW Desert Peak venture, Recurrent Power’s 200-MW Crimson venture, and 174 Energy International / Hanwha Group’s 60-MW Eldorado Valley venture.
It additionally provides a 5-MW behind-the-meter battery aggregation from Sunrun, increasing on a pilot venture with the solar-storage supplier earlier this 12 months so as to add a full-scale deployment for supply in 2023.
The four-hour length 2.63 gigawatt-hours to an SCE battery portfolio that’s already topping the U.S. utility file books. In Might, SCE introduced contracts for 770 megawatts of large-scale battery contracts with distributors together with NextEra, TerraGen Energy, LS Energy and Southern Energy, equating to greater than three gigawatt-hours of storage capability set to come back on-line by August 2021.
The brand new contracts convey SCE’s power storage whole to simply greater than 2 GW put in and procured to this point. If authorised by the California Public Utilities Fee, the NextEra contract is about for supply in 2023, whereas the opposite two utility-scale tasks are scheduled to come back on-line in 2022.
Assembly short-term grid reliability wants
The brand new tasks will assist meet each short- and long-term objectives for California’s solely electric-only investor-owned utility. Within the quick time period, the brand new procurement meets final 12 months’s California Public Utilities Fee order to ship a mixed three.three gigawatts of sources by 2023 to assist the state handle grid reliability.
Invoice Walsh, SCE vice chairman of power procurement and administration, declined to reveal the worth of the contracts in a Monday interview.
“We had a variety of competitors within the solicitation, and we have been lucky to choose up probably the most cost-effective ones for our clients,” he stated.
SCE has taken the lead in securing battery storage to satisfy these targets, however others are following go well with. Pacific Gasoline & Electrical is contracting seven battery tasks totaling 423 megawatts, or practically 1.7 gigawatt-hours of power storage capability, for August 2021 supply. Municipal utility Los Angeles Division of Water and Energy has contracted for as much as 300 megawatts/1.2 gigawatt-hours of storage being constructed alongside 400 megawatts of solar energy being constructed by 8Minute Power.
CCAs, town and county entities that serve about one-quarter of the state’s electrical energy clients, have added 1,700 MW of renewable power and greater than 1,000 MW of battery power storage over the previous 12 months, bringing whole capability to greater than 6,000 MW.
August’s rolling blackouts throughout a regionwide heatwave highlighted the state’s want for grid sources that may retailer and shift its rising share of era to serve demand peaks coming later within the day, because the solar goes down and solar energy fades.
Final month the CPUC launched a continuing contemplating emergency steps to alleviate the opportunity of one other grid emergency subsequent summer time, with choices starting from bolstering supply-side sources like pure gas-fired energy crops or utility-scale batteries to growing demand-side sources like behind-the-meter batteries and demand response.
The CPUC and state grid operator CAISO are within the midst of reforming the useful resource adequacy (RA) regime that guides grid capability procurement for the state, together with the principles for a way utility-scale and behind-the-meter batteries can securely serve the state’s new night peaks.
“We’re shifting from about 200 megawatts of storage on the system, primarily, to 1000’s of megawatts on the system this coming summer time,” Walsh stated. “We’re working carefully with CAISO and different stakeholders to guarantee these sources can be found throughout this important internet peak.”
Shifting towards California’s 2045 zero-carbon objective
SCE has already contracted for a whole bunch of megawatts of front-of-meter storage underneath the state’s 2013 power storage mandate, and to spice up reliability after the closure of the Aliso Canyon pure fuel storage facility.
It’s additionally contracted for a whole bunch of megawatts of behind-the-meter batteries underneath a 2014 plan to interchange the capability misplaced from the closure of the San Onofre nuclear energy plant. Its new contract with Sunrun is supposed to broaden that capability by a mixture of current Sunrun solar-battery clients, and putting in new programs in low-income and deprived communities, Walsh stated.
However SCE sees extra grid reliability wants arising by mid-decade, because the state’s final nuclear energy plant, Diablo Canyon, closes down. “We’ve stated in our public filings that we see a further capability want from 2024 and past” of as much as 5,400 MW between 2024 and 2026, he stated.
“This is step one, in our thoughts, towards shifting towards the clear power future,” he added. California has set a objective of 100 % carbon-free power by 2045, which would require an enormous quantity of power storage to shift solar energy and different renewable power from the hours it’s produced to the hours it’s wanted.
SCE’s “Pathway 2045” roadmap estimates the state wants so as to add 30 GW of utility-scale storage and 10 GW of distributed storage to satisfy the state’s decarbonization objectives. The utility forecasts it might want to make investments about $170 billion in clear power era and power storage by 2045 to satisfy that objective, together with as much as $75 billion extra for grid upgrades to assist electrify transportation, heating and different sectors served by fossil fuels.
The state’s three investor-owned utilities are set to take a position $1 billion on grid infrastructure and incentives, a part of an enormous increase in EV charging funds accelerated by Gov. Gavin Newsom’s September determination to ban gross sales of latest gasoline-fueled automobiles by 2035 in response to this 12 months’s damaging and local weather change-exacerbated wildfires.
On the constructing electrification entrance, the California Power Fee is now weighing modifications to constructing codes that might make all-electric new buildings far cheaper than these utilizing pure fuel. Greater than 30 metropolis and county ordinances banning or proscribing pure fuel in new buildings have been handed within the state since Berkeley grew to become the primary to take action final 12 months.
The renewable and storage capability SCE is focusing on is “the spine that’s finally going to offer the clear power wanted, not solely to cost electrical automobiles, however any form of constructing power wants as we transfer towards electrification,” Walsh stated.