SCE Procures 261 MW of Energy Storage Projects

November 6, 2014 By Linda Hardesty

stem energy manageSouthern California Edison has signed contracts for 2,221 MW of power from diverse new resources, representing roughly 10 percent of SCE’s current total customer peak usage.

In addition to five offers with new natural gas generation plants, SCE selected 69 offers from “preferred” energy resources and energy storage facilities.

The preferred resources selected include energy efficiency, demand response and solar photovoltaic facilities. This procurement effort also marks the first time SCE has contracted with energy storage projects through a competitive solicitation.

Stem says it was awarded 85 MW in SCE’s capacity procurement. Stem will deploy its behind-the-meter energy storage at customer locations in the Western Los Angeles Basin to act as dispatchable capacity to enhance the local reliability of the region.

Stem was previously selected for projects with the Sacramento Municipal Utility District and Hawaiian Electric Company and is active in the California Independent System Operator wholesale energy market.

A Stem spokeswoman said, “It’s the first time that energy storage has competed with traditional energy sources like natural gas at this scale.”

The California Energy Storage Alliance (CESA) said the contracts with energy storage providers are “the largest grid-connected energy storage purchase in US history more than five times greater than the utility’s minimum energy storage procurement authorization of 50 MW, per California Public Utilities Commission ruling.”

In addition to Stem, the companies named to provide storage systems and the amounts are:

• NRG Energy, 0.5 MW
• Ice Energy Holdings, 25.6 MW
• Advanced Microgrid Solutions, 50.0 MW
• AES Energy Storage, 
100.0 MW

All of the contracts require California Public Utilities Commission approval.

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