SDG&E will rate-base 70-MWs of ESS, while contracting for 13.5-MWs with project developers

Written By: Stratton Report
April 19, 2017


On April 19, SDG&E announced that it had signed contracts for five new local battery storage facilities for a total of 83.5-MWs, and signed a contract to add a 4.5-MW demand response program.

According to SDG&E, it had submitted all six contracts to the California Public Utilities Commission for approval.

If approved, two of the five ESSs will be rate-based by SDG&E, including a 40-MW ESS to be built by AES Energy Storage and a 30-MW facility to be built by Renewable Energy Systems Americas Inc.

The utility noted that the other storage projects totaling 13.5 MW will be owned by third parties including Powin Energy, Enel’s U.S. sub Enel Green Power North America, and Advanced Microgrid Solutions; the facilities will be located in Escondido, Poway and San Juan Capistrano. 

Emily Shults, SDG&E’s vice president of energy procurement remarked:

These projects will add more flexibility to the system and help us to ensure reliability while providing greater levels of clean energy to all of our local communities. By building these projects, SDG&E will remain at the forefront of helping the state achieve its bold clean-energy and carbon-emission targets.

Per SDG&E, the CPUC) has given it a target of employing 165-MWs by 2020. 

In addition, the utility’s new C&I demand response program, run by OhmConnect, is designed to add flexibility to the system, according to the firm. The demand response involved will be employed by the California Independent System Operator and/or SDG&E as needed.