The six project agreements complete PG&E's procurement requirements outlined in a November 2019 CPUC decision that identified potential electric system reliability issues beginning in summer of 2021. In that decision, the CPUC authorized PG&E to procure at least 716.9 MW of system reliability resources to come online between August 1, 2021 and August 1, 2023.
In May, 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. PG&E has awarded contracts for battery energy storage projects totaling more than 1,000 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) PG&E launched in July. 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 is comprised of 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 PG&E's service area.
- Lancaster Battery Storage, LLC – The Lancaster Battery Storage project is comprised of a 15-year agreement for a 127 MW transmission-connected stand‑alone battery energy storage resource located in Lancaster, Calif. (Los Angeles County).
- LeConte Energy Storage, LLC (a subsidiary of LS Power Associates, L.P.) – The LeConte Energy Storage project is comprised of a 15-year agreement for a 40 MW transmission-connected stand‑alone battery energy storage resource located in Calexico, Calif. (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 is comprised of a 15-year agreement for a 132 MW transmission-connected battery energy storage resource located in Linden, Calif. (San Joaquin County).
- Daggett Solar Power 2, LLC (a subsidiary of Global Infrastructure Partners) – The Daggett 2 BESS project is comprised of a 15-year agreement for a 46 MW transmission-connected battery energy storage resource co-located with the Daggett 3 BESS Project in Daggett, Calif. (San Bernardino County).
- Daggett Solar Power 3, LLC (a subsidiary of Global Infrastructure Partners) – The Daggett 3 BESS project is comprised of a 15-year agreement for a 15 MW transmission-connected battery energy storage resource co-located with the Daggett 2 BESS Project in Daggett, Calif. (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.
