PG&E Proposes Expanding Battery Energy Storage Portfolio

Pacific Gas and Electric Co. (PG&E) has requested California Public Utilities Commission (CPUC) approval of six additional battery energy storage projects totaling 387 MW of capacity, intended to further integrate clean energy from renewable generation sources while helping to ensure future reliability of the electric system.

The six project agreements complete the PG&E's procurement requirements outlined in a November 2019 CPUC decision that identified potential electric system reliability issues beginning in the summer of 2021. In that decision, the CPUC authorized the PG&E to procure at least 716.9 MW of system reliability resources to come online between Aug. 1, 2021, and Aug. 1, 2023.

In May 2020, the PG&E announced the results of its first round of procurement — 423 MW of battery energy storage capacity, scheduled to be online by August 2021.

"The next few years will be pivotal for the deployment and integration of utility-scale battery energy storage onto the grid. The PG&E has awarded contracts for battery energy storage projects totaling more than 1000 MW of capacity to be deployed through 2023, all of which contribute to meeting California's ambitious clean energy goals while ensuring grid efficiency and reliability, reducing the need to build additional fossil fuel generation plants, and keeping customer costs affordable," said Fong Wan, senior vice president, energy policy and procurement, PG&E.

Project details

The project agreements resulted from a competitive request for offers (RFO) the PG&E launched in July 2020. The six new projects listed below all feature lithium-ion battery energy storage technology, each with a four-hour discharge duration.

• Nexus Renewables U.S. Inc.: The AMCOR project comprises a 15-year agreement for a fleet of behind-the-meter battery energy storage resources, totaling 27 MW, located across a variety of sites in the PG&E's service area.

• Lancaster Battery Storage, LLC: The Lancaster Battery Storage project comprises a 15-year agreement for a 127-MW transmission-connected standalone battery energy storage resource located in Lancaster, California (Los Angeles County).

• LeConte Energy Storage, LLC (a subsidiary of LS Power Associates, L.P.): The LeConte Energy Storage project comprises a 15-year agreement for a 40-MW transmission-connected standalone battery energy storage resource located in Calexico, California (Imperial County).

• North Central Valley Energy Storage, LLC (a wholly owned subsidiary of NextEra Energy Resources Development, LLC): The North Central Valley Energy Storage Project comprises a 15-year agreement for a 132-MW transmission-connected battery energy storage resource located in Linden, California (San Joaquin County).

• Daggett Solar Power 2, LLC (a subsidiary of Global Infrastructure Partners): The Daggett 2 BESS project comprises a 15-year agreement for a 46-MW transmission-connected battery energy storage resource co-located with the Daggett 3 BESS Project in Daggett, California (San Bernardino County).

• Daggett Solar Power 3, LLC (a subsidiary of Global Infrastructure Partners): The Daggett 3 BESS project comprises a 15-year agreement for a 15-MW transmission-connected battery energy storage resource co-located with the Daggett 2 BESS Project in Daggett, California (San Bernardino County).

The AMCOR project, the Lancaster Battery Storage project, and the LeConte Energy Storage project — totaling 194 MW — are scheduled to come online by August 2022.

The North Central Valley Energy Storage project and both Daggett projects — totaling 193 MW — are scheduled to be online by August 2023.