PG&E Proposes Two Energy Storage Projects for Oakland Clean Energy Initiative to CPUC

By Paul Doherty

PG&E today (April 15) requested approval of two energy storage projects totaling more than 43 megawatts (MW) as a part of the collaborative Oakland Clean Energy Initiative (OCEI) in a filing at the California Public Utilities Commission (CPUC).

After carefully evaluating multiple, competitive proposals, PG&E has entered into two agreements for third-party owned energy storage projects -- one with Vistra Energy Corp. subsidiary Dynegy Marketing and Trade, LLC (Vistra) for a 36.25 MW battery energy storage system (BESS) and one with esVolta/Tierra Robles Energy Storage, LLC for a 7 MW BESS.

The energy storage will be interconnected to PG&E’s distribution grid in West Oakland. The Vistra BESS will be located at the site of the existing Oakland Power Plant adjacent to the Oakland C substation near Jack London Square. The Tierra Robles BESS will be located on the distribution system served by the Oakland L substation in West Oakland.

They are both front of the meter lithium-ion battery storage projects each with a 4-hour duration. In total, PG&E’s proposed OCEI procurement portfolio includes 43.25 MW and 173 megawatt hours (MWh) of energy storage.

An environmentally-conscious reliability solution for the local Oakland community

OCEI is a clean and innovative solution to a grid reliability problem that combines near-term transmission upgrades, operational solutions, and procurement of energy storage to maintain grid reliability and allow for the retirement of an aging fossil fuel generator in an urban area.

PG&E and the California Independent System Operator (CAISO) worked collaboratively through the 2017-2018 Transmission Planning Process to study the reliability needs in the Oakland area, and plan for future operation without reliance on the existing jet-fueled Oakland Power Plant, which is nearing the end of its expected life.

OCEI provides a novel approach to grid reliability by utilizing targeted distributed energy resource deployment and investment in the surrounding grid infrastructure, compared to traditional wires-based transmission solutions. OCEI will replace fossil generation with clean energy in a community which has been identified by the California Environmental Protection Agency as having one of the worst pollution profiles in the Bay Area.

“There has been widespread support for this solution, from local community leaders, elected, labor, and environmentalists as this solution improves air quality, reduces GHG emissions, supports local jobs, provides continued service reliability, and enables the retirement of an aging fossil generation power plant, advancing the state’s energy policy goals,” said Roy Kuga, vice president, PG&E.

First-of-its-kind Utility/CCA Collaboration

Community groups have been involved since before PG&E announced the initiative in December 2017, providing guidance on appropriate local clean energy solutions.

PG&E collaborated with East Bay Community Energy (EBCE), the local Community Choice Aggregator (CCA) serving the city of Oakland, on the procurement of energy storage for OCEI.

In April 2018, the competitive solicitation process for preferred resources was issued by PG&E and EBCE. The solicitation was the first of its kind between an Investor Owned Utility and a CCA, with each entity procuring resources to complete the portfolio of solutions.

As a result of the solicitation, EBCE announced that it reached agreements, also with Vistra and Tierra Robles Energy Storage, LLC, for those resources to participate in the CAISO markets, delivering resource adequacy. This will ensure the CAISO has necessary energy-generating capacity available to serve electric customers in the Oakland area during periods of peak demand or in the event of a grid emergency. PG&E’s agreements with the resources guarantee that the energy storage is the right size, and in the right location, to ensure reliable transmission service in the Oakland area.

“OCEI is a compelling example of how a utility and a load serving entity such as a CCA can work together to provide reliability benefits for customers and the transmission grid,” Kuga added.

The non-procurement elements of OCEI, including transmission and substation upgrades, are all on schedule or already completed, and today’s application to the CPUC marks completion of the procurement phase of the initiative.

If approved by the CPUC, PG&E’s and EBCE’s proposed energy storage projects are expected to be operational by the first quarter of 2022.

Email Currents at Currents@pge.com.