Greensmith Energy announced Aug. 16 that AltaGas Ltd. has selected Greensmith as the software provider and system integrator for a 20 MW/80MWh energy storage system in Pomona, California.
Together, AltaGas and Greensmith will deploy a state-of-the-art 20 MW energy storage system to help with Resource Adequacy in California and offer multiple other grid applications. The project will be expedited and is expected to be completed in December 2016.
“AltaGas has significant experience developing, owning and operating clean energy assets across North America,” said David Harris, President and Chief Executive Officer of AltaGas. “Adding battery storage to our California power portfolio and having Greensmith as our partner, proves the versatility of our asset base and greatly enhances the value of what we can offer the California and desert southwest markets through integrated energy centers providing clean, reliable electricity.”
“We are honored to be selected by AltaGas to be an integral part of the California Public Utilities Commission’s call for energy storage capacity,” said John Jung, President and CEO of Greensmith Energy. “From the beginning, Greensmith embarked on building and delivering the most advanced, mission-critical energy storage technologies for both grid-scale and behind-the-meter applications. And over the past 8 years, the successful execution of this strategy along with an unparalleled track-record of safe, reliable and timely project completion – helped us gain the confidence of innovative leaders such as AltaGas”.
AltaGas on Aug. 16 separately announced that through its wholly owned subsidiary, AltaGas Pomona Energy Storage Inc., it has signed a 10 year Energy Storage Resource Adequacy Purchase Agreement (ESA) with Southern California Edison (SCE) for 20 MW of energy storage at its Pomona Facility in the east Los Angeles Basin of Southern California. AltaGas will build, own and operate the AltaGas Pomona Energy Storage Project. The project is expected to cost US$40-$45 million and will be among the largest battery storage projects in North America when it comes on line by the end of December.
AltaGas was a successful participant in SCE’s Request For Offers (RFO) for resource adequacy from energy storage units. Under the terms of the Energy Storage Agreement, AltaGas will provide SCE with 20 MW of resource adequacy capacity for a continuous four-hour period, the equivalent of 80 MWh of energy discharging capacity. AltaGas will receive fixed monthly resource adequacy payments and will retain the rights to earn additional revenue from the energy from the lithium-ion batteries.
“Winning this RFO represents an important next step as we continue to advance our California power strategy,” said Harris. “Adding battery storage to our California power portfolio proves the versatility of our asset base and greatly enhances the value of what we can offer the California and Desert Southwest markets through integrated energy centers providing clean reliable electricity.”
In conjunction with the Energy Storage Agreement, AltaGas selected Greensmith to provide its software control platform (GEMS) in addition to lithium-ion batteries and power conversion technology (PCS). The battery and PCS hardware will be integrated by Greensmith. AltaGas will retain overall management, execution and operations of the project.
AltaGas noted that it also continues to work on repowering the existing, gas-fired Pomona Facility. In the first quarter of 2016 AltaGas submitted an application with the California Energy Commission to repower the Pomona Facility to a flexible, fast ramping peaking facility under the small power plant exemption process. It is anticipated that the application review process will be approximately 12 months and include a review of the emissions profile by the local air district.
The existing Pomona Facility is a 44.5 MW gas-fired peaker strategically located in the Los Angeles load pocket. The repowered facility could be comprised of more efficient gas-fired technology with a capacity up to 100 MW. Following approval, AltaGas will be ready to bid the repowered Pomona facility into upcoming RFOs or enter into other bilateral contract arrangements.
Canada-based AltaGas is an energy infrastructure company with a focus on natural gas, power and regulated utilities.