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

Evidence is growing, however, that battery energy storage can beat natural gas on price when it comes to a specific type of power generation known as “peaking capacity.” Known as peakers, the fast-start power plants typically are called on to generate power on days when consumer demand for electricity is highest. For most places, that’s a hot summer day when air conditioners are cranked up.

One milestone came earlier this year when Arizona Public Service signed a 15-year deal for peaking power from a solar-powered battery. The 50 MW of storage beat out other forms of peaking generation, including natural gas. A field of solar PV panels from FirstSolar will energize the storage array when the sun is high in the sky, allowing electricity to be delivered to customers during times of peak demand.

Over the next 15 years, Arizona Public Service says it plans to put more than 500 MW of additional battery storage capacity in place. In January 2018, Arizona utility regulator Andy Tobin proposed that the state’s utilities deploy 3,000 MW of energy storage by 2030.

Efforts to increase the amount of energy storage in places like Arizona and California received a boost in February when the U.S. Federal Energy Regulatory Commission (FERC) voted 5-0 to remove what it said were nationwide barriers that kept storage sources from taking part in various markets that are run by Regional Transmission Organizations and Independent System Operators.

In a November 2016 proposal, the Obama-era FERC said that market rules designed for traditional generation resources created barriers to entry for emerging technologies such as electric storage resources. The February action was the next step in that effort to reduce or remove barriers to entry.