Clean Power Alliance (CPA) last week said it has inked its first Energy Storage Agreement (ESA) after its board of directors approved the 100-MW Luna Storage standalone battery storage project. CPA said the project is the largest energy storage deal for a CCA in California and one of the largest in the entire state.
The Luna Storage project is a 100-megawatt/400-megawatt hour standalone lithium ion battery storage project that will be owned and operated by sPower, an independent power producer (IPP). The project is located in the City of Lancaster, within Los Angeles County, and is expected to be operational by August 2021. It will allow CPA to cost-effectively integrate intermittent renewable energy resources into the grid and will also help enable the closure of gas-fired power plants located in CPA’s local communities.
At a total cost of more than $100 million, the project will create approximately 50 union construction jobs, said CPA.
The project marks the continued evolution and increase in the scale of CPA’s procurement efforts to fulfill the state’s reliability needs without the use of fossil fuels. The 15-year agreement, which went from bid to contract execution in less than six months, demonstrates CPA’s nimbleness in meeting fast-changing regulatory requirements and electrical grid dynamics.
Late last year, the California Public Utilities Commission (CPUC) required CPA to procure at least 98.4 MW of new capacity by 2021, a requirement that has now been surpassed with this agreement. Additional requirements for 2022 and 2023 will be fulfilled by future agreements that are currently under negotiation through CPA’s 2019 Reliability Request for Offers.
“Clean Power Alliance is excited to be advancing our clean energy goals during this difficult time,” said Ted Bardacke, Executive Director. “By fast tracking projects like Luna Storage, we are fighting climate change while investing in our community and creating jobs right when they are needed the most.”
“sPower is committed to helping CPA and other CCAs achieve their clean energy future. We operate more than 1,200 MW of solar generation in California and are excited to partner with CPA to add new energy storage to the supply mix,” said Hans Isern, Senior Vice President of Power Marketing, sPower. “This project will improve grid-resiliency and employ hardworking LA County union members, including those from the IBEW, Ironworkers, LiUNA and others.”