In January, the CPUC authorized PG&E to launch an accelerated solicitation for energy storage projects capable of meeting reliability needs for three specified local sub-areas in the northern central valley (Pease local sub-area and Bogue local sub-area) and spanning Silicon Valley to the central coast (South Bay - Moss Landing local sub-area).
PG&E issued its request for offers on February 28 and received offers from numerous participants. PG&E selected one offer for a utility-owned project and three offers for third-party owned projects, all to be located within the South Bay - Moss Landing local sub-area.
The proposed utility-owned project is a 182.5 MW lithium-ion battery energy storage system (BESS) located within PG&E's Moss Landing substation. This transmission-connected BESS will address local capacity requirements and will participate in the California Independent System Operator (CAISO) markets, providing energy and ancillary services.
The three contracts awarded for third-party owned projects also are lithium-ion battery projects.
The projects include: a 10MW aggregation of behind-the-meter batteries located at customer sites and interconnected to local substations within the South Bay – Moss Landing local sub-area; a stand-alone, transmission-connected 75MW BESS located near the city of Morgan Hill; and a stand-alone, transmission-connected 300MW BESS located in Moss Landing.
PG&E is implementing transmission solutions, rather than energy storage contracts, for the Pease and Bogue local sub-areas that would effectively address capacity shortfalls and alleviate voltage issues in those areas, respectively.
If approved by the CPUC, the first of PG&E's proposed projects is scheduled to come on-line by the end of 2019, with the other projects scheduled to come on-line by the end of 2020.
