AltaGas Ltd., through its wholly owned subsidiary, AltaGas Pomona Energy Storage Inc., has signed a 10 year Energy Storage Resource Adequacy Purchase Agreement (ESA) with Southern California Edison (SCE) for 20 megawatts of energy storage at its Pomona Facility in the east Los Angeles Basin of Southern California. AltaGas will build, own and operate the AltaGas Pomona Energy Storage Project. The project is expected to cost between $40 to $45 million and will be among the largest battery storage projects in North America when it comes on line by the end of December, 2016.
AltaGas was a successful participant in SCE’s Request For Offers (RFO) for resource adequacy from energy storage units. Under the terms of the Energy Storage Agreement, AltaGas will provide SCE with 20 MW of resource adequacy capacity for a continuous four hour period, the equivalent of 80 MWh of energy discharging capacity. AltaGas will receive fixed monthly resource adequacy payments under the ESA and will retain the rights to earn additional revenue from the energy from the lithium-ion batteries.
“Winning this RFO represents an important next step as we continue to advance our California power strategy,” said David Harris, President and Chief Executive Officer of AltaGas. “Adding battery storage to our California power portfolio proves the versatility of our asset base and greatly enhances the value of what we can offer the California and Desert Southwest markets through integrated energy centers providing clean reliable electricity.”
In conjunction with the Energy Storage Agreement, AltaGas has selected Greensmith Energy Management Systems, Inc., a provider of energy storage software and integration services, to provide its software control platform (GEMS) in addition to lithium-ion batteries and power conversion technology. The battery and PCS hardware will be integrated by Greensmith. AltaGas will retain overall project management, execution and operations of the Project.
AltaGas also continues to work on repowering the existing Pomona Facility. In the first quarter of 2016 AltaGas submitted an application with the California Energy Commission to repower the Pomona Facility to a flexible, fast ramping peaking facility under the small power plant exemption process. It is anticipated that the application review process will be approximately 12 months and include a review of the emissions profile by the local air district. The existing Pomona Facility is a 44.5 MW gas-fired peaking plant strategically located in the Los Angeles load pocket. The repowered facility could be comprised of more efficient gas-fired technology with capacity up to 100 MW. Following approval, AltaGas will be ready to bid the repowered Pomona facility into upcoming RFOs or enter into other bilateral contract arrangements.