CC Power, a community energy provider consortium in California, has held its second long-duration energy storage tender, again for an eight-hour lithium-ion battery storage system.
CC Power is a joint power agency of 10 Community Choice Aggregators (CCAs), 7 of which made the purchase. The group announced at the end of January this year that renewable energy developer LS Power's 69MW/552MWh Tumbleweed lithium-ion battery project was the first project selected for the agency's joint tender (RfP) contract.
CC Power said a few days ago that the agency’s board members voted at a special meeting to approve the signing of a contract to purchase electricity from the GoalLine battery energy storage project, a 50MW/400MWh lithium-ion battery energy storage project that Forward Energy is developing.
The eight-hour battery storage system will be built in Escondido, California, and is expected to open in 2025, a year ahead of LS Power's planned Tumbleweed battery storage project.
These solicitations and procurements are in response to a requirement by the California Public Utilities Commission (CPUC) that the state's load-serving entities (including CCAs, investor-owned utilities, municipal utilities, and cooperatives) must procure sufficient renewable energy to Ensuring the so-called "medium-term reliability" of the power system.
In addition to procuring 11.5GW of clean energy between 2025 and 2026 to alleviate capacity shortages including the retirement of natural gas-fired power plants and the Diablo Canyon nuclear power plant, the California Public Utilities Commission (CPUC) is requiring load-serving entities to procure at least 1GW of long-duration energy storage.
Bids selected from 9GW long-duration energy storage tenders submitted
Community Choice Aggregators (CCAs) are actually leading the way, Girish Balachandran, CEO of Silicon Valley Clean Energy (SCVE), revealed in an interview shortly after announcing the signing of the Tumbleweed energy storage system procurement contract.
Of course, Silicon Valley Clean Energy (SCVE) and other Community Choice Aggregators (CCAs) have also noticed the "duck curve" of California's solar generation versus grid demand, and how this changes and meets the pattern of peak demand.
The situation will become even more dire as California aims to use 50 percent of its electricity from renewable sources by 2030 and fully decarbonize by 2045.
CC Power's original request for information (RfI) for long-duration energy storage was issued in 2020, a year before the California Public Utilities Commission (CPUC) request. CC Power seeks to deploy an energy storage system with an installed capacity of more than 50MW with a minimum continuous discharge time of 8 hours, and the GoalLine energy storage project must be able to come online by June 1, 2026.
After CC Power issued its tenders, 51 entities were awarded tenders for battery energy storage projects with a total installed capacity of over 9GW. Girish Balachandran said the diversity of technology and its ability to meet duration requirements is very positive.
While the lithium-ion battery energy storage system was selected first (and the second long-duration energy storage system), Silicon Valley Clean Energy (SCVE) CEO Balachandran has said that there is a third shortlisted project based on emerging energy storage technologies. While he did not disclose what technology was being used, he referred to the tenders he received for these projects, which involved everything from flow batteries to hydrogen fuel cells, gravity energy storage, pumped hydro storage, various thermal energy storage and more. .
He said that in the next few years, California's energy sector is likely to contract a large number of energy storage technology. Central Coast Community Energy (CCCE) has contracted to procure three redox flow battery (VRFB) energy storage projects with a total storage capacity of 226MWh, which are expected to come online in 2026.
Energy storage systems have already proven their worth in California. According to recent reports from industry media, the state’s main grid and wholesale market operator, the California Independent System Operator (CASIO), will see a 12-fold increase in battery storage systems deployed on its grid in 2021 compared to 2020.
Elliot Mainzer, president and CEO of the California Independent System Operator (CASIO), said this will enable dispatching about 1GW of battery energy during the July 2021 Bootleg area forest fires, which could help mitigate outages .
Meanwhile, their planned Tumbleweed and GoalLine energy storage projects allow CC Power members to meet their demands through the California Public Utilities Commission's (CPUC) interim reliability ruling for lithium-ion battery energy storage systems. Various Community Choice Aggregators (CCAs) vote on the approval of the GoalLine project.
"This new contract enables participating members to meet California mandated long-duration energy storage deployment requirements and demonstrates how Community Choice Aggregators (CCAs) can Leading California's push for clean energy."
In addition, it is reported that the California government has provided $380 million in funding support for long-term energy storage projects through the 2022-2023 state budget.