SDG&E Seeks At Least 200 MW Of ‘Preferred Resources’ In 800 MW ‘All-Source’ Solicitation

Posted by SI Staff on September 09, 2014 No Comments
Categories : RFP

San Diego Gas & Electric (SDG&E) is seeking between 500 MW and 800 MW of new, local generating resources, with a minimum of 200 MW coming from ‘preferred resources.’

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.

Another important aspect of this effort is that any new resource included will be in the local area which means that the resources obtained will be close to the customers who will be served by them, the utility says. The California Public Utilities Commission (CPUC) approved SDG&E's procurement plans earlier this year.

SDG&E is issuing a competitive solicitation for these new resources. The procurement is intended to help replace the power previously provided by the San Onofre Nuclear Generating Station, as well as the retirement of older, coastal power plants that use once-through-cooling technology.

SDG&E also will evaluate conventional resources as part of this ‘all-source’ solicitation. SDG&E is seeking regulatory approval of a power purchase agreement with the Carlsbad Energy Center, a proposed 600 MW conventional peaking facility. If the CPUC approves the Carlsbad application, the amount of local resources being sought in the all-source solicitation would be reduced accordingly.

The utility wants the Carlsbad Energy Center to provide the quick-start flexibility needed to support the increasing amount of intermittent renewable energy that is being added to the system. The proposed plant would also be available in the late afternoon and early evening, when customer demand is highest and renewable power slows or stops producing, SDG&E says.

Bids for the all-source solicitation for new and preferred local resources are due Jan. 5, 2015.

For more information on how renewable energy sources and storage can work together in effective hybrid combinations that include natural gas sources, visit the Hybrid Energy Innovations event website here.

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