AES Southland wins 20-year energy storage power purchase agreement with SCE

AES Southland won a 20-year power purchase agreement by Southern California Edison (SCE), to provide 100 MW of interconnected battery-based energy storage, a 200 MW flexible power resource.

This new capacity can deliver 400 MWh of energy and will be built south of Los Angeles at the Alamitos Power Center in Long Beach, California.

The scale of this award brings advanced energy storage to a new phase, recognizing it as a true alternative to a traditional peaking plant. This selection is an outcome of SCE’s 2013 local capacity requirements request for offer (RFO), a competitive solicitation for new power capacity in the Western Los Angeles Basin.

SCE reported that more than 1,800 offers were submitted, including thermal generation, demand response, preferred resources and energy storage. This award is an industry first for the selection of energy storage in a competitive solicitation with other peak and flexible power capacity alternatives.

This award comes as California seeks a variety of new generating resources and advanced energy solutions to replace the retired San Onofre Nuclear Generating Station and a number of older natural gas-fired power plants which will retire to comply with California’s policy on the use of ocean water for cooling. AES has also been awarded contracts by SCE for new combined cycle power plants at its existing Huntington Beach and Long Beach facilities.

The project will be ready for commercial operation in 2021, consistent with the scheduled retirement of older, existing power plants.

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