Dive Brief:
- San Diego Gas & Electric wants to add 166 MW of storage to its system disbursed between seven projects focused on emergency response services. Within the next 12 years, the utility says it will develop or interconnect more than 330 MW of energy storage to help keep the system reliable and integrate additional renewable energy.
- The utility's plan also includes an incentive program for nonprofit care facilities to install energy storage, called the Energy Storage Customer Program Pilot.
- SDG&E says its proposal, filed last month with the California Public Utilities Commission, was made in response to a 2016 law that allowed utilities to add distributed energy storage. Combined with other requirements, California is targeting almost 2 GW of storage between its three investor-owned utilities.
Dive Insight:
SDG&E is describing its seven proposed storage projects as three parts: emergency preparedness, reliability and helps integrate renewable energy. Located in both rural and urban areas of San Diego County, the projects would serve facilities such as fire and police stations, emergency operation centers, and emergency evacuation sites.
Once approved, SDG&E said the plan would be implemented in phases over the next few years, and all projects are slated to be online by 2024. Along with other projects planned to be online before 2030, they will help bring more renewables on to the grid and maintain reliability.
The proposal's Energy Storage Customer Program Pilot would assist non-profit care facilities with installing energy storage and could include locations such as hospice and nursing homes as well as children’s and senior’ homes.
If regulators approve the pilot, SDG&E will issue a solicitation and identify a third party to administer the program. The utility said the program could be running within a year of CPUC signoff.
California's AB 2868 was passed two years ago, requiring the state’s three investor owned utilities to procure 500 MW of behind-the-meter energy storage. It is a part of the state's broader push to acquire storage resources and was an additional requirement on top of a 2013 law requiring utilities to procure 1,325 MW of storage.
In January, state regulators approved "revenue stacking" rules for energy storage projects, allowing them to collect revenue streams for different services. California is the first state to pass such rules.
