Energy Storage Projects to Replace Three Natural Gas Power Plants in California

The regulatory mandate directing PG&E to seek energy storage proposals was not the first time California regulators acted to boost storage.

In February 2013, regulators told utility Southern California Edison to secure energy storage and other resources to meet an expected shortfall stemming from the closure of the San Onofre nuclear power plant. In that instance, the utility’s energy storage target was 50 MW. It ultimately procured more than 260 MW of storage capacity.

Then, in May 2016, regulators again directed SoCalEd to procure storage to ease electric supply shortages that were feared as a result of a leak at a natural gas storage facility. As a result, more than 100 MW of grid-level energy storage was placed into service.

In announcing the Silicon Valley projects, PG&E sought to play up storage’s role in helping to integrate increasing amounts of renewable energy onto California’s grid.  It also cited recent decreases in battery prices as enabling energy storage to compete with “traditional solutions” such as fossil-fueled power plants.  

No cost details were provided by the utility in making its announcement. And a nearly 250-page supporting document justifying the four projects was scrubbed of cost details before being released to the public.