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Apr 26, 2022

California Public Utilities Commission approves PG&E to deploy 9 battery energy storage projects totaling 1.6GW/6.4GWh

Recently, the California Public Utilities Commission (CPUC) has approved new project plans in the state, including nine battery energy storage system (BESS) plans proposed by Pacific Gas & Electric (PG&E), totaling 1.6GW/6.4GWh.


The project proposed by Pacific Gas & Electric (PG&E) in January in response to an order to procure 11.5GW of clean energy has been approved under the California Public Utilities Commission's (CPUC) internal resource planning process.


Rendering of the Edwards Sanborn Solar + Storage Project in Kern County, California. This includes the deployment of a 2,445MWh battery storage system, one of the largest in the world, although only 28% of it is part of PG&E's purchases.


The California Public Utilities Commission (CPUC) is also requiring the state's utilities to deploy a portion of additional energy storage for the summer of 2022 and 2023, a decision enacted in December 2021 after extreme weather events that year put pressure on the grid. item requirements.


These storage systems must come online between 2023 and 2026, but Pacific Gas & Electric (PG&E) expects the nine storage systems (1,598.7MW to be exact) to be fully operational by June 2024 put into operation.


These independently deployed energy storage systems are all four-hour grid-connected lithium-ion battery storage projects ranging from 80MW/320MWh to 350MW/1,400MWh.


All nine battery storage systems will supply power to the California Independent System Operator (CAISO) grid under a 15-year long-term resource adequacy agreement. Resource adequacy is a California Independent System Operator (CAISO) effort to ensure that the grid has sufficient capacity to power customers. The state aims to have a carbon-free grid by 2045.


Pacific Gas & Electric (PG&E) uses net market value (NMV) and other qualitative factors, such as being located in disadvantaged communities, to identify deployment sites through a competitive bidding process.


California battery energy storage projects are now mainly profitable through resource plentiful and wholesale energy trading, with a total installed capacity of nearly 3GW, while the frequency response market is only 500MW.


The California Public Utilities Commission (CPUC) also approved the 2020 energy storage deployment plans of Pacific Gas & Electric (PG&E), San Diego Gas & Electric (SDG&E), and Southern California Edison (SCE), under Assembly Bill 2514. The 1,325MW energy storage system has already been procured and will come online by the end of 2024. Southern California Edison (SCE) and Pacific Gas & Electric (PG&E) each purchased 580MW, while San Diego Gas & Electric (SDG&E) purchased 165MW.


The California Public Utilities Commission (CPUC) also approved two Southern California Edison (SCE) clean energy programs: a $500,000 residential energy storage pilot and a $13.9 million heat pump program.


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