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New Energy Storage Projects Will Support A Cleaner, More Reliable Power Grid

 

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Energy storage is creating a cleaner, more reliable power grid in the San Diegoregion, and more storage is on the way.

 

San Diego Gas & Electric (SDG&E) announced today that five new energy storage projects totaling 83.5 megawatts (MW) and one demand response program equaling 4.5 MW have been approved by the California Public Utilities Commission (CPUC). The 83.5 MW of energy storage will help improve grid reliability and integrate more renewables, creating a cleaner, healthier, and more sustainable future. The projects will add lithium-ion battery storage facilities in San Diegoand south Orange counties.

"The approval marks yet another milestone in our journey to create a clean energy future for every family and business in southern California," said Scott Drury, president of SDG&E. "These projects exemplify our commitment to expanding the use of innovative energy solutions such as battery storage and demand response to benefit customers and our communities."

Contracting with SDG&E in these projects include RES America, Advanced Microgrid Solutions, Fluence, Powin Energy, and Enel Green Power. OhmConnect has contracted with SDG&E to administer the demand response program. Demand response programs call on customers to conserve energy during heavy peak periods that cause strain on the power grid.

The energy storage facilities can harness clean energy when it is abundant and be used as a resource during peak times to power the local economy.

"I'm excited we're bringing more clean energy resources to San Diego and applaud SDG&E's push to add more battery storage projects across the region," said San Diego Mayor Kevin L. Faulconer. "These innovative projects will create good-paying jobs and help expand the use of renewable energy. I look forward to seeing this project come online next year and continue our collective journey toward a cleaner and greener San Diego."

Below are summaries of the approved projects:

  • Renewable Energy Systems (RES) America will build a 30 MW/120 MWh lithium-ion battery storage facility in San Diego, Calif. The project is expected to be completed by December 2019.
  • Advanced Microgrid Solutions will build a 4 MW/16 MWh lithium-ion battery storage facility in San Juan Capistrano, Calif. The project is expected to be completed by December 2019.
  • Fluence will build a 40 MW/160 MWh lithium-ion battery facility in Fallbrook, Calif. The project is expected to be completed by March 2021.
  • Powin Energy will build a 6.5 MW/26 MWh lithium-ion battery storage facility in Escondido, Calif. The project is expected to be completed by June 2021.
  • Enel Green Power will build a 3 MW/12 MWh lithium-ion battery storage facility in Poway, Calif. The project is expected to be completed by December 2021.
  • OhmConnect is providing a demand response program for the equivalent of 4.5 MW.

Energy storage is playing a key role in SDG&E's commitment to deliver clean, safe and reliable energy. By 2030, the company expects to develop or interconnect more than 330 MWs of energy storage. These projects will help deliver more renewables to customers and help strengthen SDG&E's record as the most reliable utility in the West.

SDG&E is an innovative San Diego-based energy company that provides clean, safe and reliable energy to better the lives of the people it serves in San Diego and southern Orange counties. The company is committed to creating a sustainable future by delivering around 45 percent of its electricity from renewable sources; modernizing natural gas pipelines; accelerating the adoption of electric vehicles; supporting numerous non-profit partners; and, investing in innovative technologies to ensure the reliable operation of the region's infrastructure for generations to come. SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego. For more information, visit SDGEnews.com or connect with SDG&E on Twitter (@SDGE), Instagram (@SDGE) and Facebook.

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "contemplates," "assumes," "depends," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "target," "pursue," "outlook," "maintain," or similar expressions or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements.

Factors, among others, that could cause our actual results and future actions to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: actions and the timing of actions, including decisions, new regulations, and issuances of permits and other authorizations by the California Public Utilities Commission (CPUC), U.S. Department of Energy, California Division of Oil, Gas, and Geothermal Resources, Federal Energy Regulatory Commission, U.S. Environmental Protection Agency, Pipeline and Hazardous Materials Safety Administration, states, cities and counties, and other regulatory and governmental bodies in the United States; the timing and success of business development efforts and construction projects, including risks in obtaining or maintaining permits and other authorizations on a timely basis, risks in completing construction projects on schedule and on budget; the resolution of civil and criminal litigation and regulatory investigations; deviations from regulatory precedent or practice that result in a reallocation of benefits or burdens among shareholders and ratepayers; denial of approvals of proposed settlements or modifications of settlements; delays in, or disallowance or denial of, regulatory agency authorizations to recover costs in rates from customers (including with respect to amounts associated with the San Onofre Nuclear Generating Station facility and 2007 wildfires) or regulatory agency approval for projects required to enhance safety and reliability, any of which may raise our cost of capital and materially impair our ability to finance our operations; the greater degree and prevalence of wildfires in California in recent years and risk that we may be found liable for damages regardless of fault, such as in cases where inverse condemnation applies, and risk that we may not be able to recover any such costs in rates from customers in California; the availability of electric power and natural gas, and natural gas pipeline and storage capacity, including disruptions caused by failures in the transmission grid, moratoriums or limitations on the withdrawal or injection of natural gas from or into storage facilities, and equipment failures; changes in energy markets; volatility in commodity prices; moves to reduce or eliminate reliance on natural gas; risks that our counterparties will be unable or unwilling to fulfill their contractual commitments; weather conditions, natural disasters, accidents, equipment failures, computer system outages, explosions, terrorist attacks and other events that disrupt our operations, damage our facilities and systems, cause the release of greenhouse gases, radioactive materials and harmful emissions, cause wildfires and subject us to third-party liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of insurance, to the extent that such insurance is available or not prohibitively expensive; cybersecurity threats to the energy grid, storage and pipeline infrastructure, the information and systems used to operate our businesses and the confidentiality of our proprietary information and the personal information of our customers and employees; capital markets and economic conditions, including the availability of credit and the liquidity of our investments; fluctuations in interest rates and our ability to effectively hedge the risk of such fluctuations; the impact of recent federal tax reform and uncertainty as to how it may be applied, and our ability to mitigate adverse impacts; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook; changes in foreign and domestic trade policies and laws, including border tariffs, and revisions to international trade agreements, such as the North American Free Trade Agreement, that make us less competitive or impair our ability to resolve trade disputes; the ability to win competitively bid infrastructure projects against a number of strong and aggressive competitors; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of our electric transmission and distribution system due to increased amount and variability of power supply from renewable energy sources; the impact on competitive customer rates due to the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through our electric transmission and distribution system and from possible departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation or other forms of distributed and local power generation, and the potential risk of nonrecovery for stranded assets and contractual obligations; and other uncertainties, some of which may be difficult to predict and are beyond our control.

These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov. Investors should not rely unduly on any forward-looking statements. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.

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