Capital Dynamics and Tenaska to develop 2,000 MW of battery storage in California

Capital Dynamics and Tenaska will develop nine battery energy storage systems with approximately 2,000 MW of capacity in the Cal-ISO market to "help integrate" renewables, the companies announced Aug.19.

The two companies, which said they were announcing their proposed battery build-out "in the light of the rolling blackouts in California," also said they hope to "quickly" contract resource adequacy with utilities and CCAs.

They said the BESS projects "will provide support during the high-demand conditions in California that cause intermittent power supply shortages across the system. "

Capital Dynamics' asset management subsidiary Clean Energy Infrastructure signed an agreement with Tenaska "expanding" their relationship. Jointly, the two own two solar facilities in the Imperial Valley of California and are developing additional solar projects.

"California is poised for continued significant growth in energy storage demand," said Benoit Allehaut, managing director in Capital Dynamics Clean Energy Infrastructure team.

Currently, he said, California "relies heavily on carbon-emitting fossil-fueled power resources to meet peak energy needs, typically occurring after midday solar energy supplies drop off."

Allehaut said that battery storage is a proven, safe, reliable, and cost-effective alternative that can "help reduce the state's dependence on fossil fuels by storing and shifting clean energy production during the day to the most needed evening hours. "

Vistra Energy has recently received permit approval for a potential expansion to 1,500 MW/6,000 MWh of its battery storage projects at its Moss Landing site from the Monterey County Planning Commission.

A battery system that large would be the rough equivalent of several peaking units.

A company spokesperson said in an email late on Aug. 18 that Vistra will expand above its current 400-MW projects "if and only if the market conditions and economics support it."

"We believe the market in California is showing a growing need, and that should bode well for future development -- but we will see," the spokesperson said.

The two Vistra projects that are currently underway at Moss Landing -- the 300MW/1200 MWh Phase 1 and the 100 MW/400 MWh Phase II -- have construction costs "in the low $300/KWh range," the spokesperson said.

These two phases were "underpinned" by resource adequacy contracts signed with Pacific Gas and Electric on May 19.

AWEA says more wind needed

In a release on Aug. 18, the American Wind Energy Association's California director, Danielle Osborn Mills, said that California's power system "requires significantly more diversity."

She said that the state relies heavily "on solar, storage, and gas -- and during this week's blackouts, there is once again a push for more storage, microgrids, and other alternatives to back these systems up."

By the end of the second quarter 2020, California was ranked fifth among all states, with 5.8 GW of installed wind capacity.

"State leaders must recognize that we need more renewables of all kinds to keep the lights on," the AWEA director said.

She said that solar resources are performing exactly as they should. "Solar power can produce huge amounts of energy, but the state needs a better plan for providing clean energy in that evening period when the sun sets."

Mills argued that the renewable system in California, and across the West, "is not sufficiently built out."

California, she said, "needs to refocus its planning and procurement processes to enable utility-scale wind, solar, and storage to provide reliable power to California before retiring our aging conventional fleet."