SCE makes largest utility energy storage purchase in history

Southern California Edison (SCE), an Edison International (NYSE:EIX) company , today announced the selected suppliers and projects for the largest grid-connected energy storage purchase in U.S. history – more than five times greater than the utility’s minimum energy storage procurement authorization of 50 MW, per California Public Utilities Commission (CPUC) ruling. Pending approval of the projects by the CPUC, SCE will purchase 261 MW of energy storage resources.

In total, SCE has signed contracts for 2,221 MW of power from diverse sources. In addition to five offers with new natural gas generation plants, SCE selected 69 offers from preferred resources and energy storage facilities. Preferred resources are methods of delivering electricity that are cleaner, or more environmentally sustainable, than traditional resources.

The California Energy Storage Alliance (CESA), a membership-based advocacy group committed to advancing the role of energy storage in the electric power sector, hailed the decision as another significant step in the commercialization of storage on the power grid – and California’s leading role in that  power market transition.

“This is a monumental decision – arrived at after a team of SCE experts studied more than 1,800 offers for various storage solutions, as well as other preferred resources and traditional generation,” said Janice Lin, Executive Director of CESA. “The fact that SCE far exceeded the minimum amount of energy storage they were ordered to purchase after comparing multiple solutions head to head, demonstrates that energy storage can be competitive with other preferred resources on both performance and value, and that it’s now an integral part of the utility planning tool kit in California.”

This procurement effort also marks the first time SCE has contracted with energy storage projects through a competitive solicitation. Once deployed, the systems will provide a number of services to SCE’s power grid, including ensuring adequate available electrical capacity to meet peak demand.

SCE Selected Resources and Contracts

 

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