San Diego utility seeks potential 140 MW of resources, including energy storage

Sempra Energy (NYSE:SRE) utility San Diego Gas & Electric (SDG&E) said March 7 that it is seeking up to 140 MW of new “preferred energy resources,” including energy storage, renewable energy, distributed generation, energy efficiency and demand response.

Bid solicitations are due July 1, SDG&E said in a news release. The utility expects to select a “short list” by Oct. 28.

This is the utility’s 2016 Preferred Resources Local Capacity Requirement (LCR) Request for Offers (RFO) to solicit bids in accordance with Decision (D) 14-03-004 – Decision Authorizing Long-Term Procurement for Local Capacity Requirements due to Permanent Retirement of the San Onofre Nuclear Generation Station (the Track 4 Decision).

The RFO was officially issued on Feb. 26.

SDG&E is interested in resources that can begin deliveries as early as 2018 but will consider later start dates, is not specifying any required term, but some portion of the delivery term must encompass all of calendar year 2022. SDG&E’s authorization for this solicitation comes from the Track 4 Decision and D.15-05-051 (the Carlsbad Energy Center Conditional Approval Decision).

SDG&E is soliciting third party-owned, contracted resources for all of the resource types listed above with the exception of energy storage. For the energy storage product type, SDG&E is soliciting both third party owned, contracted resources and energy storage systems to be owned by SDG&E (more information on Utility owned storage can be found on the Energy Storage web page and in the Energy Storage RFO document).

The Independent Evaluator (IE) for this solicitation is PA Consulting (Jon Jacobs – jonathan.jacobs@paconsulting.com; and Barbara Sands – Barbara.Sands@PAConsulting.com).

A pre-bid conference and bidder outreach event is scheduled April 13. This will be an in-person event (with dial-in / webinar available for those that cannot attend in-person).  Participation in these events is NOT mandatory in order to submit an offer, the utility said.

The solicitation builds upon SDG&E’s already significant investments in clean energy, which includes more than 60 renewable contracts that represent more than 2,400 MW of renewable energy.

In 2015, SDG&E became the first California utility to supply its customers with a third of its energy (33%) from renewable sources.

www.sdge.com/procurement/2016PrefResourcesLCRRFO

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.