PG&E considering 300 MW power plant in Calif.

Pacific Gas and Electric (PG&E, NYSE: PCG) is considering building a 300 MW power plant in Lodi, Calif. that would store energy in the form of compressed air to be used during peak demand times, according to a report from the Lodi News-Sentinel. The plant would be the third of its kind in the world if built.

The News-Sentinel reported a PG&E representative confirmed the company is discussing a potential lease of city property to build the plant with the city of Lodi. The plant would be activated sometime in 2020 with a current tentative timeline.

According to the report, the plant would use renewable energy from solar panels or wind turbines to compress air and store it underground into depleted natural gas reservoirs. When energy demand spikes, pressure turbines will pull the compressed air out of the ground where it would be used to power a generator to produce electricity.

The proposed project is part of a study by PG&E using a $25 million grant from the U.S. Department of Energy, the News-Sentinel reported. That grant was matched by the California Public Utilities, and the California Energy Commission contributed $1 million.

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