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California Governor Floats 5-GW, $5.2B ‘Reliability Reserve’ Amid Possible Electricity Shortfalls

California Gov. Gavin Newsom, D, has earmarked $5.2 billion in a revised budget proposal released Friday to fund a “strategic electricity reliability reserve” – an up to 5,000 MW resource that the state can tap into when the grid is particularly stressed.

California Prepares for Energy Shortfalls in Hot, Dry Summer

California likely will have an energy shortfall equivalent to what it takes to power about 1.3 million homes when use is at its peak during the hot and dry summer months, state officials said Friday.

Threats from drought, extreme heat and wildfires, plus supply chain and regulatory issues hampering the solar industry will create challenges for energy reliability this summer, the officials said. They represented the California Public Utilities Commission, the California Energy Commission, and the California Independent System Operator, which manages the state’s energy grid.

San Vicente Potential Energy Storage Facility Project Moves Ahead

As partners, the City of San Diego and the San Diego County Water Authority will begin negotiations on a project development agreement with the BHE Kiewit Team to develop Phase 1 of the potential San Vicente Energy Storage Facility Project, which could generate enough energy for about 135,000 households.

The proposed project is subject to a full environmental review and regulatory approvals.

San Vicente Energy Storage Facility-storage facility-renewable energy

San Vicente Potential Energy Storage Facility Project Moves Ahead

As partners, the City of San Diego and the San Diego County Water Authority will begin negotiations on a project development agreement with the BHE Kiewit Team to develop Phase 1 of the potential San Vicente Energy Storage Facility Project, which could generate enough energy for about 135,000 households.

The proposed project is subject to a full environmental review and regulatory approvals. If the Water Authority and City of San Diego decide to proceed after completing environmental review, the San Vicente Energy Storage Facility would provide up to 500 megawatts of long-duration stored energy upon completion to help meet peak electrical demands throughout Southern California and help meet California’s renewable energy goals.

“Reliable, clean source of energy”

“On top of providing a reliable, clean source of energy and helping our City and the state of California meet our climate goals, this project has the potential to create well-paying local jobs,” said San Diego Mayor Todd Gloria. “I’m proud of the City’s partnership on this project and look forward to it moving though the regulatory approval process to fruition.”

The Water Authority’s Board of Directors on January 27, approved entering into negotiations with BHE Kiewit, along with a $4.6 million contract with AECOM Technical Services, Inc. to perform environmental work for the project.

The Board also approved a $1.6 million amendment to a professional services contract with Black & Veatch Corp. to support project development agreement negotiations, provide technical expertise for a California Independent System Operator interconnection application, perform preliminary design and engineering reviews, and assist with preparing a Federal Energy Regulatory Commission (FERC) license application.

Water Authority Board Chair Gary Croucher said the Board’s action will help propel the potential project forward by getting started on environmental review and other necessary requirements.  “The San Vicente Energy Storage Facility Project meets multiple goals for the San Diego region, including protection from blackouts and supporting climate-friendly energy sources,” said Croucher. “We’re excited to get moving.”

Phase 1

Phase 1 work includes activities required to complete site investigations, design, and engineering; support state and federal environmental reviews; support the acquisition of a CAISO interconnection agreement; support the acquisition of a FERC license; and collaborate with project partners to achieve commercialization.

Four proposals were received and evaluated for the project development contract. Teams submitted written proposals followed by interviews in December. Evaluators considered each team’s understanding of the scope of work, technical and specialized qualifications, strategies to commercialize the project, and financial capabilities.

Pumped energy storage facility project

The panel unanimously recommended starting negotiations with the BHE Kiewit Team, which includes BHE Renewables, LLC, and Kiewit Development Company. BHE Renewables, LLC, is a wholly owned subsidiary of Berkshire Hathaway Energy Company. The Water Authority Board today also approved negotiating with Rye Development, LLC, if negotiations with the BHE Kiewit Team are not successful.

California sources nearly one-third of its power from renewables, mainly solar and wind. The target for renewable energy in California is 60% by 2030. Such a major shift to renewables will require new kinds of investments, markets and business practices. Electric grids need to be more flexible; new kinds of power supplies will help deliver energy flexibility when needed; and new pricing systems are needed to send clear signals to developers and financial markets that these projects need to move forward.

Pumped energy storage projects, such as the San Vicente Energy Storage Facility, are designed to store excess renewable energy from solar and wind during the day, and then discharge that energy when energy use increases in the evening and renewable energy is not as plentiful.

Energy Storage Process-San Vicente Energy Storage Facility-Renewable Energy

The San Diego County Water Authority and the City of San Diego are partners in developing the San Vicente Energy Storage Facility. The pumped storage energy project at San Vicente Reservoir could store 4,000 megawatt-hours per day of energy, or 500 megawatts of capacity for eight hours. Graphic: San Diego County Water Authority

The San Vicente project would create a small upper reservoir above the existing, City-owned San Vicente Reservoir, along with a tunnel system and an underground powerhouse to connect the two reservoirs. As planned, the powerhouse would contain four reversible pump turbines.

During off-peak periods – when power is inexpensive and renewable supplies from wind and solar facilities exceed demand – turbines would pump water to the upper reservoir where it would act as a battery of stored potential energy. During high energy use, the system would discharge water from the upper reservoir downhill through the turbines, producing energy. The exchange between the two reservoirs would not consume water.

San Vicente Reservoir is near major electricity transmission interconnection facilities, which would allow the project to play a central role in integrating solar and wind energy from across the Southwest for use in San Diego County.

The San Vicente project is largely immune to the challenges faced by some conventional hydropower facilities because it would rely on an existing reservoir that holds primarily imported water and does not fluctuate significantly from year to year.

For more details about the San Vicente Energy Storage Facility go to: www.sdcwa.org/projects/san-vicente-pumping-facilities/.

(Editor’s Note: The City of San Diego is one of the San Diego County Water Authority’s 24 member agencies that deliver water across the metropolitan San Diego region.)

San Vicente Potential Energy Storage Facility Project Moves Ahead

January 27, 2022 – As partners, the City of San Diego and the San Diego County Water Authority will begin negotiations on a project development agreement with the BHE Kiewit Team to develop Phase 1 of the potential San Vicente Energy Storage Facility Project, which could generate enough energy for about 135,000 households.

The proposed project is subject to a full environmental review and regulatory approvals. If the Water Authority and City of San Diego decide to proceed after completing environmental review, the San Vicente Energy Storage Facility would provide up to 500 megawatts of long-duration stored energy upon completion to help meet peak electrical demands throughout Southern California and help meet California’s renewable energy goals.

Record Snowfall in Northern California May Help the State’s Electric Grid in 2022

The deluge of snow in recent days along the Sierra Nevada mountain range has been a record-breaker. And that’s not only good news for ski resorts but it may lead to a healthy boost in hydroelectricity production in California this coming summer, which would help the state’s often-strained electric grid.

Major Energy Storage Project Proposed Near Lebec Along California Aqueduct

California’s energy future keeps pointing to Kern.

The latest 10-figure energy storage proposal in the county is a damlike “pumped hydro” project connected to the California Aqueduct that would store and release 3,500 gigawatt-hours of power per year on or near Tejon Ranch.

There’s no money yet for it or a similar proposal the same Los Angeles County engineering and development group disclosed in December that would be located next to Isabella Lake.

In Search of ‘Lithium Valley’: Why Energy Companies See Riches in the California Desert

Standing atop a pockmarked red mesa, Rod Colwell looks out at an expanse of water that resembles a thin blue strip on the horizon. The Salton Sea, California’s largest lake, has come and gone at least five times in the last 1,300 years, most recently in 1905, when floodwaters from the Colorado River refilled its basin.

A mid-century resort destination, the lake has since become an environmental disaster zone.

Drought Forces West to Turn to Fossil Fuels That Helped Cause It

An unlikely energy sector is emerging as a winner from the West’s megadrought: fossil fuels, whose heavy use has been blamed for creating the conditions causing the drought in the first place.

The drought has slashed the electricity-generating capacity of major hydroelectric dams, forcing buyers to spend millions of dollars to buy extra power from an expensive sellers’ market.

San Vicente Energy Storage Facility project-renewable energy-grid-pumped hydro

Request for Proposals Issued to Develop San Vicente Energy Storage Facility

San Diego County Water Authority this week issued a formal Request for Proposals seeking a full-service private partner capable of developing a large-scale pumped energy storage project planned jointly by the Water Authority and the City of San Diego. Proposals are due by 2 p.m. Nov. 3, and details such as how to file are included in the RFP document at www.sdcwa.org/contracting-opportunities.

Request for Proposals

The partner agencies aim to maximize the value of the existing San Vicente Reservoir for on-demand energy generation to support the state’s clean energy goals. The Water Authority and the City of San Diego are seeking a full-service, multidisciplinary team capable of delivering and operating the project.  The scope of work is divided into two phases: Phase 1 Preliminary Work and Phase 2 Implementation Work. The RFP details the scope of work required for development and deployment of the project, including a financial plan.

“This is an exciting project that meets multiple goals for the San Diego region, including protection from blackouts and supporting climate-friendly energy sources,” said Gary Bousquet, director of engineering for the Water Authority. “We are committed to finding a private partner who can help move this from concept to completion.”

State funds for San Vicente Energy Storage Facility

In July 2021, the San Vicente Energy Storage Facility received $18 million in the state budget, enough to advance it through initial design, environmental reviews, and the federal licensing process. The San Vicente project is one of the most promising pumped energy storage solutions in California and it would be a major asset to help avoid rolling blackouts through on-demand energy production while helping to meet state climate goals. It also could mitigate costs for water ratepayers across the San Diego region by generating additional revenue to help offset the cost of water purchases, storage, and treatment. The City and the Water Authority are developing the project together, just like they did to raise the height of the city-owned San Vicente Dam 117 feet in the 2010s.

“The San Vicente Energy Storage Facility is an important project for San Diego,” said Juan Guerreiro, executive assistant director of the City of San Diego’s Public Utilities Department. “It will improve our energy security, with a clean renewable power solution to help us efficiently manage the energy supply within our region.”

With state funding in place, the Water Authority and the City are preparing to launch federal and state environmental reviews and seek a project license from the Federal Energy Regulatory Commission. Those complex components are expected to take at least four years, with construction completion forecast for 2030. The critical infrastructure project will create more than 1,000 construction-related jobs in addition to its other benefits.

Renewable energy for Southern California

Upon completion, the San Vicente energy project would provide up to 500 megawatts of long-duration stored energy, which will assist in meeting peak electrical demand periods throughout Southern California and help meet the goals of Senate Bill 100, which requires 60% renewable energy by 2030 and 100% zero-carbon energy resources statewide by 2045. The project will provide enough energy for about 135,000 households when operating.

California’s continuing shift to renewables will require new kinds of investments, markets, and business practices. Electric grids need to be more flexible; new kinds of power supplies will help deliver energy flexibility when needed; and new pricing systems are needed to send clear signals to developers and financial markets that these projects need to move forward.

Pumped energy storage projects are a major piece of the solution. They are designed to store excess renewable energy from solar and wind during the day, and then discharge that energy when energy use increases in the evening and renewable energy is not available.

The San Vicente project would create a small upper reservoir above the existing San Vicente Reservoir in Lakeside, along with a tunnel system and an underground powerhouse to connect the two reservoirs. The powerhouse would contain four reversible pump turbines.

 

 

San Vicente Energy Storage Facility Project-Renewable Energy-Graphic

During off-peak periods – when power is inexpensive and renewable supplies from wind and solar facilities exceed demand – turbines would pump water to the upper reservoir where it would act as a battery of stored potential energy. During high energy use, the system would discharge water from the upper reservoir downhill through the turbines, producing energy. The exchange between the two reservoirs would not consume water.

San Vicente Reservoir is near major electricity transmission interconnection facilities, which would allow the project to play a central role in integrating solar and wind energy from across the Southwest for use in San Diego County. The San Vicente project is largely immune to the challenges faced by some conventional hydropower facilities because it is a closed-loop system that mainly holds imported water and is not reliant on runoff that can fluctuate significantly from year to year and hamper power production.

(Editor’s note: The City of San Diego is one of the San Diego County Water Authority’s 24 member agencies that deliver water across the metropolitan San Diego region.)