According to the U.S. Energy Information Administration (EIA), in 2017, a total of 44.4 million metric tons of carbon dioxide (CO2) were emitted by the production processes of conventional power plants in California. The state government has established a series of policies and regulations aimed at reducing these emissions. One of the most important is the Renewables Portfolio Standard (RPS) Program, which through Senate Bill 1078 in 2002 mandated an initial requirement that 20% of electricity retail sales be generated by renewable resources by 2017. In 2018, Senate Bill 100 was signed into law, increasing the RPS to 60% by 2030 and requiring that all the electricity in the state come from carbon-free resources by 2045.
The project consists of the design, construction and operation of a 6.5-megawatt alternating current (MWAC) energy storage system that will occupy 10,750 square feet of an existing warehouse. The facility will be capable of storing up to 26 megawatt-hours of electricity, the equivalent of serving 4,333 customers for four hours. The project will provide capacity, energy, ancillary services and resource adequacy benefits, which will be purchased by SDG&E pursuant to a 10-year tolling agreement, giving it the right to use and control the operation of the facility.
The purpose of the project is to increase the energy storage capacity of the California grid, which will allow the system operator to reduce the use of ramp-up/ramp-down fossil-fuel power generating plants in the grid and manage it more efficiently.