Since its inception, power generation has been notoriously difficult to build. Even once developers sort through regulatory preferences and siting difficulties, they still must construct huge slabs of modern industry on time and on budget — a feat that’s tripped up more than one utility in 2017.
Whether in a regulated or restructured state, building even relatively simple natural gas plants or grid upgrades can take years, and the process for more complex nuclear generators or transmission lines often stretches decades. The long lead times mean utilities must plan for new infrastructure many years in advance and make it difficult to respond to short-term changes on the grid.
But recent developments in California could prove to be a turning point. After the worst methane leak in United States history took the Aliso Canyon gas storage facility offline, California regulators early last year issued a series of mitigation measures, including energy efficiency programs and an expedited approval process for energy storage projects.
It was the opening the energy storage industry was waiting for. A year and a half from the decision, California utilities have deployed multiple long-duration storage applications, including installations from Tesla, AES and Greensmith/AltaGas.
The largest of these facilities is the 30 MW, 120 MWh Escondido energy storage project built by AES, and is one of the biggest lithium ion battery installations in the world. Built in about six months, it and a smaller, 7 MW battery provide daily ramping and peak shaving services for San Diego Gas & Electric — services typically delivered by gas generators.
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