San Diego Gas & Electric announced it is seeking between 500 and 800 megawatts of new local resources to help replace the power previously provided by the San Onofre Nuclear Generating Station as well as the retirement of older, coastal power plants, the company said.
The California Public Utilities Commission's Energy Division approved SDG&E’s procurement plans earlier this year outlining the company’s approach to procuring 500 to 800 MW of new resources by 2022, with a minimum of 200 MW coming from “preferred resources,” according to SDG&E.
Preferred resources include energy efficiency, demand response, renewables, combined heat and power resources and distributed generation. Additionally, a minimum of 25 MW of energy storage is included in the mix. SDG&E, through a competitive solicitation, seeks new and innovative solutions to deliver these resources.
According to SDG&E, any new resource included will be in the local area.
“With the region facing a future without the San Onofre Nuclear Generating Station, we must take new and creative approaches to the problem to help sustain reliability in the region at the lowest cost,” said James P. Avery, senior vice president of power supply for SDG&E. “As our customers value sound environmental solutions, we’re committed to achieving this by adding additional cleaner fuels to our portfolio to help to pave the way for a greener, brighter energy future.”
Bids for the all-source solicitation for new and preferred local resources are due Jan. 5, 2015.
SDG&E also will evaluate conventional resources as part of this “all source” solicitation. SDG&E already is seeking regulatory approval of a power purchase agreement with the Carlsbad Energy Center, a proposed 600-MW, state-of-the-art conventional peaking facility. If approved, the Carlsbad Energy Center would provide the quick-start flexibility needed to reliably integrate the increasing amount of intermittent renewable energy that is being added to the system, SDG&E said.
The proposed plant would also be available when customer demand is highest in the late afternoon and early evening when renewable power slows or stops producing. If the CPUC approves the Carlsbad Application, the amount of local resources being sought in the all source solicitation would be reduced accordingly.